Gary Theater is in the Hoosier Mall. A cashier's booth islocated near the entrance to the theater. Two cashiers areemployed. One works from 1:00 to 5:00 p.m., the other from 5:00 to9:00 p.m. Each cashier is bonded. The cashiers receive cash fromcustomers and operate a machine that ejects serially numberedtickets. The rolls of tickets are inserted and locked into themachine by the theater manager at the beginning of each cashier'sshift. After purchasing a ticket, the customer takes the ticket toa doorperson stationed at the entrance of the theater lobby some 60feet from the cashier's booth. The doorperson tears the ticket inhalf, admits the customer, and returns the ticket stub to thecustomer. The other half of the ticket is dropped into a locked boxby the doorperson. At the end of each cashier's shift, the theatermanager removes the ticket rolls from the machine and makes a cashcount. The cash count sheet is initialed by the cashier. At the endof the day, the manager deposits the receipts in total in a banknight deposit vault located in the mall. In addition, the managersends copies of the deposit slip and the initialed cash countsheets to the theater company treasurer for verification and to thecompany's accounting department. Receipts from the first shift arestored in a safe located in the manager's office. (a)Identify theinternal control principles and their application to the cashreceipts transactions of Gary Theater. (b)If the doorperson andcashier decided to collaborate to misappropriate cash, what actionsmight they take?
