Internal controls

not have a receipt, cash will still $be$ refunded for any item under $$75.If$ the item $is$ more than $$75,$ a check $is$ mailed $to$ the customer.

the selling floor $as$ soon $as$ possible.

This year, returns $at$ Ramona's have reached $an$ all$-$time high. There are a large number $of$ returns under $$75$ without receipts.

$a.$ How can sales clerks employed $at$ Ramona's Clothing use the store's return policy $to$ steal money from the cash register?

$-$

$b.$ What internal control weaknesses $do$ you see $in$ the return policy that make cash thefts easier?

$C.$

$c.$ Would issuing a store credit $in$ place $of$ a cash refund for all merchandise returned without a receipt reduce the possibility $of$ theft?

Classify the following $as$ either advantages $or$ disadvantages $of$ issuing a store credit $in$ place $of$ cash.

A clerk could only issue a phony store credit rather than taking money from the cash register.

The store would lose less revenue $if$ customers had $to$ choose other store merchandise instead $of$ getting a cash refund.

Issuing only a store credit for returns without a receipt $is$ a stricter return policy that may affect gift$-$givers' purchase decisions.