Suggestions:
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- Proper segregation of duties in a department ensures that no single
individual handles all aspects of a transaction or business process,
thus reducing the possibility of undetected errors or fraudulent
activity.
- Ensure that no one person handles all phases of a transaction, e.g.,
creates, approves, and reconciles.
- Good segregation of duties is critical to prevent fraud in a cash
operation. Having one person in charge of all phases of a cash
operation is risky - the rule of thumb is that there should be at
least two sets of eyes on every transaction. Ideally you should ensure
that the individual responsible for record keeping (reconciling cash/
checks received to cash register tapes, registration or other income
records) is different from the person who has custody of the
cash/checks (opens mail, prepares deposit). In small departments this
can be a challenge, however, there are creative ways to compensate if
you cannot fully segregate duties, e.g., have someone outside of the
process analyze sales and deposits for reasonableness or monitor for
unusual trends.
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