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Yorkshire Bike Shop has a liberal return policy. A customer can return any product for a full refund within 14 days of purchase. When a

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Yorkshire Bike Shop has a liberal return policy. A customer can return any product for a full refund within 14 days of purchase. When a customer returns merchandise, Yorkshire policy specifies: Store clerk issues a pre-numbered return slip, refunds cash from the cash register, and keeps a copy of the return slip for review by the manager. Store clerk places the returned goods back on the shelf as soon as possible. Yorkshire uses the periodic inventory system. Required 1. How can a dishonest store clerk steal from Yorkshire? What part of company policy enables the store clerk to steal without getting caught? 2. How can Yorkshire improve its internal controls to prevent this theft? Requirement 1. How can a dishonest store clerk steal from Yorkshire? What part of company policy enables the store clerk to steal without getting caught? to link the returned merchandise to cash The store clerk can issue a fictitious return slip and pay himself/herself the money. Having store clerks place returned goods back on the shelf provides refunds paid to customers. Requirement 2. How can Yorkshire improve its internal controls to prevent this theft? Yorkshire should have the store clerk keep all returned merchandise for review by a manager. The manager can match the issued by the clerk and verify the value of returns to cash out from the cash register. The clerk should also take the customer's V and have the customer sign the return slip to help ensure the customer was legitimate. The policy should also require that the customer the original bill of sale

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