Chegg has already answered this one. I want something more that is why i have posted differently. So please 'Expert Answer' thinks they can copy the others answers which is already their in chegg and student won't know than thats not the case. We are not DUMB. I already have answer which is posted in chegg, so i believe you (expert answer) won't COPYING the answere because i want something more than just it. I am POSTING this second time on chegg so please do not copy the previous answers on chegg in this question.

Auditing Accounts

Internal Control Project

The purpose of this project is to develop a better understanding of internal control through considering a scenario based on an actual case of misappropriation of assets. Answer all of the requirements below based on the following facts of the case. Be sure to properly cite any sources you use in completing the requirements.

Surprising Returns at All-American Grocery Markets

Bill Smith worked as a clerk at the customer service counter of an All-American Grocery Markets (AAGM) store in suburban Chicago, Illinois. AAGM is a major chain of grocery stores with over 2,500 locations across the US and has been a publicly-held company for 75 years. In November 2021, Bill was working long hours processing returns of goods from AAGM customers. However, in addition to actual customer return transactions, Bill was also crediting a number of fictitious transactions to several of his own credit cards. In a two-week period during that month, Bill processed 50 phony transactions which totaled $890,000, and spent a significant amount of the stolen funds on luxury purchases including several expensive new vehicles. When the fraud was finally discovered by AAGM in early January 2022, store personnel blamed the occurrence of this fraud on a key reviewer of return transactions being off-work due to an illness during those two weeks of November 2021. During its fiscal year ended December 31, 2021, AAGMs total sales revenue and net income were $129,400 million and $2,550 million, respectively.

Required:

1) How would a retail grocery store like AAGM differ from other types of companies in handling sales returns? (the Answer should be in form of couple sentences.)

2) Would the fraud described above indicate a material weakness in ICFR for AAGM? Why or why not? (the Answer should be in form of couple sentences.)

3) Assume that AAGM wants to implement a new system for handling in-store customer returns and that you are a consultant who has been engaged by the audit committee of AAGM to do so. In a brief memo addressed to the chair of AAGMs audit committee, describe the internal control policies and procedures that AAGM should put in place to help ensure that this type of fraud does not happen again. (the Answer should be in form of MEMO.)