Question

Raj owns a chain of small store-front gyms that provide small group fitness training. Most of the customers pay by monthly membership.

Stephanie is the store manager for own of Raj's gyms, located in Amherst. Stephanie allows some of the customers to pay by Square card reader. The has set up the Square account to transfer the cash receipts into her own bank account, and not into the business bank account.

Raj has noticed that store receipts are down, but Stephanie explained (falsely) that several customers had dropped their membership.

Which controls are MOST likely to detect the scheme?

		Comparison of cash receipts to people actually showing up at the gym.
		Analysis of cash receipts recorded in the business bank account
		Audit confirmation of the business bank account.
		Investigative interview of Stephanie.

Answer 1