You have been asked to provide accounting consulting services to a privately owned company. After talking to employees you discover the following issues associated with accounting and internal controls:

5. Items issued from the stock room for in store purchases are not returned to the stockroom if the customer does not buy the item. Instead of returning them to the stockroom, the items are stored at the front counter and someone else brings them back to the stockroom when they have time.

6. Where the highly desirable electronics parts are stored, there are cameras, but the tape is erased everyday. Also, employees indicated that they know how to avoid the cameras.

7. There are no financial statements from previous years since the company had always generated enough cash to cover all expenses. ( This had changed in the last year.)

Select the 3 issues and describe the controls that should be put in place. Show each issue and recommendation separately.