The Leaning Tower of Metropolis is a tall structure attached to the top of the highest building in the city with a lift in the centre to take paying customers to a viewing platform at the top of the tower. On payment of the appropriate fee for an adult, concession or child customer, the cashier in the ticket booth enters the details into the computer system, which then prints out a cardboard ticket. The ticket includes the price paid and whether the customer is an adult, concession or child.

The customer then takes the ticket to the attendant who stands ouside the lift. The attendant collects the tickets and is supposed to tear them in half and put them in a bin.

At the end of the day, the manager counts the money in the ticket booth and compares this with what has been entered into the computer to produce the tickets. At the end of each month the accountant compares the deposits per the bank statement with the daily takings compiled by the computer system.

Required

A. What are the most important internal control principles and procedures being used by the Leaning Tower of Metropolis to ensure control over cash receipts? Does the Tower have an adequate system of internal control?

B. Is it possible for the ticket seller and the lift attendant to misappropriate cash through collusion? If so, how could the system be improved to overcome this possibility?