Each department of CanAsian Airlines operates and manages its own petty cash fund to cover the cost of incidental office-related expenses. In your department, Guy has been delegated the responsibility of maintaining this fund. As his supervisor, you are authorized to sign the requisition that is sent to the accounting department at the end of each month to replenish the fund.
Over the past few months, you have observed Guy opening the petty cash box and giving what appear to be small amounts to various individuals in the office. When you review the requests to replenish the fund, however, you notice that the requisition has no reference to these persons; nor are petty cash vouchers signed by these individuals included with the requisition. The policy and procedures manual, given to all CanAsian employees, has a section on maintaining the fund. It states clearly that these monies are to be used only for office-related expenses.
While you have every confidence in Guy’s ethics and integrity, and ability to maintain this fund, you suspect that Guy has been advancing monies to these individuals for personal use.