You have just accepted a job with Philodendron Co. Your duties include being cashier of the petty cash fund. Upon inspection of the fund, you find that it includes \($143\) in currency, \($5\) in postage stamps, \($21\) in lOUs, and \($37\) in various receipts. Because no written records are kept of the petty cash fund, you had to find out from the previous cashier that the approved amount of the fund is \($215\).

1. Discuss the elements of control necessary for effective maintenance of a petty cash fund.

2. Suggest changes that Philodendron Co. can make to improve the effectiveness of its petty cash fund.