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Question :
At the Main Street Theater, the cashier, situated in a box office at the entrance, receives cash from customers and operates a machine that ejects serially numbered tickets. To gain admission to the theater, a customer hands the ticket to a door attendant stationed some 50 feet from the box office at the entrance to the theater lobby. The attendant tears the ticket in half, opens the door for the customer, and returns the stub to the customer. The other half of the ticket is dropped by the door attendant into a locked box.
What controls are present in this stage of handling cash receipts?
What steps could be taken regularly by the manager or other supervisor to provide maximum effectiveness to these controls?
Suppose that the cashier and the door attendant decide to collaborate in an effort to steal cash receipts. What action might they take?
Continuing the assumption made in above of collusion between the door attendant and cashier, what features of the controls could be likely to disclose he embezzlement?
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