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Recommend internal control(s) to prevent, detect, and/or correct the items of concern in the future, and clearly identify the type of each control (P.D, and/or

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Recommend internal control(s) to prevent, detect, and/or correct the items of concern in the future, and clearly identify the type of each control (P.D, and/or C). In 2003, Mary Hansen founded the Bohotiques company with a single store in Dublin, California. Bohotiques now has 19 shops located in Dublin, San Francisco and San Jose, California Hansen camed an accounting degree in college passed the CPA exam in her first attempt, and worked for a Big 4 accounting firm for 9 years. prior to opening her first store. She recently selected a state-of-the-art accounting system that connects all of her stores financial transactions and reports. Hansen's employees include two internal auditors who monitor internal controls and also search for ways to improve the company's operational effectiveness. As part of the monitoring process, the Internal auditors take turns conducting periodic reviews of the accounting records. For instance, the company takes a physical inventory count at all stores once each year and an internal auditor oversees the process. The most senior internal auditor just completed a review of the accounting records and discovered items of concern. These were: Physical inventory counts varied from inwentory book amounts by more than 6% at two of the afores. In both cases, physical inventory was lower Two of the stores appear to have an unusually high amount of sales returns for cash In nine of the stores, gross profit has dropped significantly from the same time last year. Al four of the stores, bank deposit slips did not match cash receipts One of the stores had an unusual number of bounced checks. It appeared that the same employee was responsible for approving each of the bounced checks In boven of the store the amount of potty cash on hand did not correspond to the amount in the petty cash account

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