Audit exercises:

The Main Street Theater cashier, located at the entrance ticket office, receives cash from customers and operates a machine that casts tickets with serial numbering. To enter the theater, the client gives the ticket to a doorman placed about 30 meters from the ticket office, at the entrance of the theater lobby. The doorman cuts the ticket in half, opens the door to the customer and returns the password. The other half introduces it to a box with a key.

It is requested:

1. What controls exist in this phase of cash income management?

2. What measures should the manager or other supervisors take periodically to achieve the maximum effectiveness of these controls?

3. Assume that the cashier and the doorman decide to collaborate to maintain cash income. What measures should be taken?

4. Continuing the assumption made in number 3 regarding the collusion between the two employees, what characteristics of the controls would allow to discover the defalco?