Money coming in.
WHY IT IS VULNERABLE
Cash is anonymous and revenue not recorded is invisible.
WHAT THE RISKS ARE
Sales not recorded Cash taken before recording Receipts recorded at less than received Customer payments diverted Refunds and voids used to conceal removal
WHY UNRECORDED SALES ARE THE HARDEST TO DETECT
There is no record to compare against.
WHAT CONTROLS HELP
Sequentially numbered receipts, accounted for Recording at the point of sale, immediately Customer receipts issued always Reconciliation of cash to recorded sales, daily Separation of the person receiving from the person recording Banking promptly and intact
WHY INTACT BANKING MATTERS
Paying expenses from takings before banking removes the ability to reconcile.
WHAT TO ESTABLISH
That all receipts are banked, and expenses paid separately.
WHY SEQUENTIAL NUMBERING
Missing numbers are visible.
WHAT TO ACCOUNT FOR
Every receipt book and number, including cancelled ones.
WHAT TO ESTABLISH ABOUT VOIDS AND REFUNDS
Approval by someone other than the person processing Documentation Review of patterns
WHY
They are the standard method of removing recorded cash.
WHAT TO REVIEW
Voids and refunds by person and by frequency.
WHAT TO RECONCILE
Cash counted against recorded sales, every day Bankings against recorded receipts
WHY DAILY
Differences identified later cannot be traced.
WHAT TO DO ABOUT DIFFERENCES
Investigate every one, however small.
WHY SMALL ONES
Tolerating small differences establishes the acceptable margin for removal.
WHAT TO ESTABLISH ABOUT CUSTOMER PAYMENTS
That customers pay to the business account, not to individuals.
