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Brown, the owner of Julie's Party Sandwiches, has delegated management of the business to Stacise Wood, a friend. Brown drops by to meet customers and check up on cash receipts, but Wood buys the merchandise and handles cash payments. Business has been very good lately, and cash receipts have kept pace with the apparent level sales. However, for a year or so, the amount of cash on hand has been to low. When asked about this, Wood explains that suppliers are changing more for goods than in the past. During the past year, Wood has taken two expensive vacations, and Brown wonders how wood can afford these trips on her $52,000 annual salary and compensations.
Question 1: List at least three ways Wood could be defrauding Brown of cash. In each instance, also identify how Brown can determine whether Wood's actions are ethical. Limit your answers to the store's cash payments. The business pays all suppliers by check (no EFTs).
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