A retail store normally has three people working in the evening. All of the employees haveaccess to the same cash register. For the last month, the cash count at the end of the eveninghas been recording losses. The losses range from Tk. 50 to Tk. 5000. So, the manager hasdecided to be the only one to count the cash at the end of the evening to keep the losses fromhappening. Discuss if the change made by the manager is a good one. Will the losses keephappening, or will this change prevent losses due to theft? What other recommendations andchanges should be considered by this manager?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 1TP: A retail store normally has three people working in the evening. All of the employees have access to...
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A retail store normally has three people working in the evening. All of the employees have
access to the same cash register. For the last month, the cash count at the end of the evening
has been recording losses. The losses range from Tk. 50 to Tk. 5000. So, the manager has
decided to be the only one to count the cash at the end of the evening to keep the losses from
happening. Discuss if the change made by the manager is a good one. Will the losses keep
happening, or will this change prevent losses due to theft? What other recommendations and
changes should be considered by this manager?

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