Eva Chan is the controller at Classic Kitchens, a large food and kitchen store. Chan has been controller for 11 years. She recently hired Helen Hunt as a bookkeeper. Hunt wants to attend a one week course on information systems, so Chan temporarily took over Hunts duties, including overseeing a fund give in-store cooking and product demonstrations. Chan discovered a shortage in this fund and confronted Hunt about it. Hunt admitted that she occasionally uses the fund to pay for her own store purchases. Chan estimated that the amount involved is close to $500.

Required:

What should Chan do?

Would you change your answer to a) if Chan was the one recently hired as controller and Hunt was a well-liked, long-time employee who indicated that she always eventually repaid the fund?