Information given for the assignment:

• Physical inventory counts varied from inventory book amounts by more than 6% at two of the stores. In both cases, physical inventory was lower.
• Two of the stores seem to have an unusually high amount of sales returns for cash.
• In 9 of the stores, gross profit has dropped significantly from the same time last year.
• At 4 of the stores, bank deposit slips did not match cash receipts.
• One of the stores had an unusual number of bounced checks. It appeared that the same employee was responsible for approving each of the bounced checks.
• In 7 of the stores, the amount of petty cash on hand did not correspond to the amount in the petty cash account.

Question to be answered:

For each of these concerns, identify a risk that may have created the problem - Bank Deposits vs Cash Receipts, Insufficient Funds, and Petty Cash Accounts.