Discount Toys advertises a customer-friendly return policy. The store allows returns within 30 days for any reason. The store uses a periodic inventory system. When merchandise is returned, store policy instructs employees to:
• Complete a pre-numbered return form and refund cash from the cash register.
• Provide a copy of the return form to the supervisor for approval.
• Immediately return goods to the shelf.
Instructions
(a) How is it possible for a dishonest store employee to steal from Discount Toys and avoid getting caught?
(b) What changes to the policy would you recommend to the company to reduce the possibility of employee fraud?