case study : Howard Street Jeweler
Howard Street Jewelers, Inc.
A. Synopsis
Howard Street Jewelers Inc. is a small retail business owned by Mr. & Mrs. Julius Levi for more than 40 years. Undoubtedly, the company had its ups and downs. It survived its previous sales slack by cutting costs. Currently, the business is experiencing a continuous downward spiral of its cash position notwithstanding the safety measures the company had taken. With that, Mrs. Lore Levi got alarmed that the jewellery company might close.
Mrs. Levi has a logical assumption that Betty, the trustworthy and reliable cashier, might be stealing from the cash register since Betty is the one managing the cash and maintaining the cash receipts and sales records for almost 20 years. Having Betty as a suspect, Mrs. Levi approached and discussed this issue with his husband and son. She also mentioned that Betty had expanded her taste for luxurious clothes and vacations. Though stating her concerns to the family, her theory was just dismissed. Near the end of each year, the Levis met with their accountant to confer business matters, especially taxation issues. Troubled Mrs. Levi pointed out her theory to their CPA, who has been working for the company for approximately 40 years. The accountant mentioned and noticed that there have been occasional shortages in the cash receipts records so he advised the Levis to strongly monitor Betty’s work. In spring of 1985, a customer approached Alvin; the son of Mr. & Mrs. Levi who in the mean time was handling the cash register, to make a payment on a layaway item. Unfortunately, after searching the files for layaway sales ticket and the sales records, Alvin wasn’t able to find the customer’s layaway purchase. He apologized and asked to the customer to return the next day. The following day, Alvin told Betty about the incident. Betty who was stunned said that she would search for the ticket and after a few minutes brought out the ticket; explaining that it was just a simple oversight.
A. Synopsis
Howard Street Jewelers Inc. is a small retail business owned by Mr. & Mrs. Julius Levi for more than 40 years. Undoubtedly, the company had its ups and downs. It survived its previous sales slack by cutting costs. Currently, the business is experiencing a continuous downward spiral of its cash position notwithstanding the safety measures the company had taken. With that, Mrs. Lore Levi got alarmed that the jewellery company might close.
Mrs. Levi has a logical assumption that Betty, the trustworthy and reliable cashier, might be stealing from the cash register since Betty is the one managing the cash and maintaining the cash receipts and sales records for almost 20 years. Having Betty as a suspect, Mrs. Levi approached and discussed this issue with his husband and son. She also mentioned that Betty had expanded her taste for luxurious clothes and vacations. Though stating her concerns to the family, her theory was just dismissed. Near the end of each year, the Levis met with their accountant to confer business matters, especially taxation issues. Troubled Mrs. Levi pointed out her theory to their CPA, who has been working for the company for approximately 40 years. The accountant mentioned and noticed that there have been occasional shortages in the cash receipts records so he advised the Levis to strongly monitor Betty’s work. In spring of 1985, a customer approached Alvin; the son of Mr. & Mrs. Levi who in the mean time was handling the cash register, to make a payment on a layaway item. Unfortunately, after searching the files for layaway sales ticket and the sales records, Alvin wasn’t able to find the customer’s layaway purchase. He apologized and asked to the customer to return the next day. The following day, Alvin told Betty about the incident. Betty who was stunned said that she would search for the ticket and after a few minutes brought out the ticket; explaining that it was just a simple oversight.