Internal Control for Cash}

After comparing cash register tapes with inventory records, the accountant for Good Times Music store is concerned that someone at one of the stores is not recording some of that store's cash sales and is misappropriating the cash from the unreported sales.

Required:

1. CONCEPTUAL CONNECTION Explain why a comparison of sales and inventory records would reveal a situation in which cash sales are not being recorded and cash from those sales is being misappropriated.

2. CONCEPTUAL CONNECTION Describe how an employee might be able to misappropriate cash from sales.

3. What internal control procedures would you recommend to make the misappropriation you described in requirement 2 more difficult?

\section*{Problem