Athletes Ltd. sells sporting goods to retail consumers. In order to keep their customers

satisfied, they allow return of any product for a full refund within 14 days of purchase, no

questions asked. When customers make a return, an employee would a

"Return of Merchandise" form, pay out cash from the register, and keep a copy of the

form for the manager. The returned item is put back on the floor as soon as the refund

is paid out.

Required 1: What is the biggest risk for this business within this scenario? (2 marks)

Required 2: Make 3 recommendations to address the internal control weakness(s). (