Step 1

The following is an excerpt from a conversation between two sales clerks,Janeand Bob.Jane andBob are employed by Lovely Boutique, a locally ownedclothing retail store.

• Jane:Tiffanywasarrested this morning.
• Bob:What didshe do?
• Jane:Well, apparentlyshewas filling out merchandise refund forms for fictitious customers and then taking the cash.
• Bob:I guess I never thought of that. How did they catch her?
• Jane:The store manager noticed that returns were twice that of last year and seemed to be increasing. When he confronted Tiffany, she became flustered and admitted to taking the cash, apparently more than $8,000 in justtwomonths. They're going over the last six months' transactions to try to determine how muchshestole.

Step 2

• Suggest appropriate control procedures that would have prevented or detected the theft of cash