Controls Over Cash Registers and Cash Receipts
Material fraud can occur where employees have access to cash – either via a cash register or other cash transactions not handled through a cash register. In order to help prevent the theft or misappropriation of cash, noted below are some basic controls over cash registers and/or cash receipts:
• Require that paper receipts be given to customers.
• Cashiers should not have authority to “void” or “override” a transaction or approve refunds; these transactions should be approved by management or supervisory personnel.
• Cashiers should not operate from one cash drawer.
• Unannounced (“surprise”) cash counts should periodically made of cash drawers.
• Surveillance cameras and/or spotters should be used where appropriate.
• “Management Override Reports” should be reviewed and approved by higher-level officers or officials.
• “Trend analysis” and “data analytics” should be used to identify any unusual increases or decreases in cash receipts (i.e. a review of daily, weekly, monthly, quarterly or annual cash trends).