Saratoga Theater is in the Federal Mall. A cashier's booth is located near the entrance to the theater. Two cashiers are employed. One works from...

Saratoga Theater is in the Federal Mall. A cashier’s booth is located near theentrance to the theater. Two cashiers are employed. One works from 1:00 to 5:00 P.M., theother from 5:00 to 9:00 P.M. Each cashier is bonded. The cashiers receive cash from customersand operate a machine that ejects serially numbered tickets. The rolls of ticketsare inserted and locked into the machine by the theater manager at the beginning of eachcashier’s shift.After purchasing a ticket, the customer takes the ticket to a doorperson stationed atthe entrance of the theater lobby some 60 feet from the cashier’s booth. The doorpersontears the ticket in half, admits the customer, and returns the ticket stub to the customer.The other half of the ticket is dropped into a locked box by the doorperson.At the end of each cashier’s shift, the theater manager removes the ticket rolls fromthe machine and makes a cash count. The cash count sheet is initialed by the cashier. Atthe end of the day, the manager deposits the receipts in total in a bank night deposit vaultlocated in the mall. In addition, the manager sends copies of the deposit slip and the initialedcash count sheets to the theater company treasurer for verification and to the company’saccounting department. Receipts from the first shift are stored in a safe locatedin the manager’s office.Instructions(a) Identify the internal control principles and their application to the cash receipts transactionsof Saratoga Theater.(b) If the doorperson and cashier decided to collaborate to misappropriate cash, whatactions might they take?

Saratoga Theater is in the Federal Mall. A cashier’s booth is located near theentrance to the theater. Two cashiers are employed. One works from 1:00 to 5:00 P.M., theother from 5:00 to 9:00...