JIm Sullivan owns Auto Spa, an automated car wash and car detailer. Auto Spa also sells snacks
Question:
JIm Sullivan owns Auto Spa, an automated car wash and car detailer. Auto Spa also sells snacks and gift items in its waiting area. Auto Spa has one cash register, where all payments from customers are received. There is a $400 change fund in the cash register. There are two cash register clerks, George and Alice, who work two different shifts during the day. Jim prints out a cash register tape at the end of the day, but doesn't compare it to the deposit.
Jim noticed an increase in business during the first week of August, but the bank deposits were less than Jim thought they would be. He contacted you for advice. By comparing the sales per the cash register tapes to the bank deposits, you find approximately $840 missing from the bank deposits for the first week of August.
What controls should Jim implement to prevent this fraud from occurring in the future?
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina