Morris Cody, the owner of Park wood Apartments, has delegated management of the apartment building to Mario daSilva, a friend. Cody drops by to meet tenants and check up on rent receipts, but daSilva manages building maintenance and handles cash payments. Rentals have been very good lately, and cash receipts have kept pace with the apparent level of rent. However, for a year or so, the amount of cash on hand has been too low. When asked about this, daSilva explains that building maintenance has been required and suppliers are charging more for goods than in the past. During the past year, daSilva has taken two expensive vacations, and Cody wonders how daSilva can afford these trips on his $60,000 annual salary.

List at least three ways daSilva could be defrauding Cody of cash. In each instance, also identify how Cody can determine whether daSilva's actions are ethical. Limit your answers to the building's cash payments. The business pays all suppliers by cheque (no EFTs).