19 Jan Susan Healey, the owner of Susan s Perfect Present
Susan Healey, the owner of Susan s Perfect Presents, has delegated management of the business to Louise Owens, a friend. Healey drops by to meet customers and check up on cash receipts, but Owens buys the merchandise and handles cash payments. Business has been very good lately, and cash receipts have kept pace with the apparent level of sales. However, for a year or so, the amount of cash on hand has been too low. When asked about this, Owens explains that suppliers are charging more for goods than in the past. During the past year, Owens has taken two expensive vacations, and Healey wonders how Owens can afford these trips on her $59,000 annual salary and commissions. List at least three ways Owens could be defrauding Healey of cash. In each instance also identify how Healey can determine whether Owens actions are ethical. Limit your answers to the stores cash payments. The business pays all suppliers by check (no EFTs).
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