Gina Pullen is the petty cash cashier for a large family-owned restaurant. She has been presented on numerous occasions with properly approved receipts for reimbursement from petty cash that she believes are personal expenses of one of the five owners of the restaurant. She reports to the controller of the company. The controller is also a family member and is the person who approves the receipts for payment out of petty cash.

Required 

What are the accounting implications if Pullen is correct? What alternatives should she consider?