Reference no: EM132609475

Athletes Ltd. sells sporting goods to retail consumers. In order to keep their customers satisfied, they allow return of any product for a full refund within 14 days of purchase, no questions asked. When customers make a return, an employee would a "Return of Merchandise" form, pay out cash from the register, and keep a copy of the form for the manager. The returned item is put back on the floor as soon as the refund is paid out.

Question 1: What is the biggest risk for this business within this scenario?

Question 2: Make 3 recommendations to address the internal control weakness(s).