Slackur Company is a very profitable small business. However, it has not given much consideration to internal controls. For example, in an attempt to keep its clerical and office expenses to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result, Rob Rowe handles all the cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations.

Required:

a. Determine the amount of cash stolen by Rob Rowe.

b. Explain what Rob Rowe did in the bank reconciliation that he prepared to try to conceal his theft.

c. What should Slackur Company do differently to prevent this type of occurrence?