College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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1. Embezzlement can result from: skimming cash, manipulating refunds, or creating fake transactions. It is possible that the coworker could have inflated expenses, recorded false refunds, or pocketed cash from sales without recording them in the system. Another possibility is underreporting sales or voiding transactions and then taking the difference.
2. Using the store’s accounting software, there is the option to analyze transaction logs for unusual activity i.e. high numbers of refunds, voided transactions, or manual adjustments. Cross-checking daily sales reports, register totals, and bank deposits are also another way to identify missing funds.
3. Finding should be reported to the supervisor/store manager and/or loss prevention department.
4. No, I would not confront my coworker as confronting them could jeopardize the investigation and raise tensions with that individual. Instead, I would just relay my finding to management and document when that conversation occurred so that if there is any issues, my basis is at least covered.
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