Wednesday, October 30, 2019

Day 49: Control Procedures

Control Procedures
provide reasonable assurance that business goals will be achieved, including the prevention of fraud.
  • Competent personnel, rotating duties, and mandatory vacations
    • properly training and supervising personnel
    • rotating duties and mandating vacations helps identify irregularities
  • Separating duties for related operations
    • cashier, cook, waiter
    • ticket Sales, ticket-taker
  • Separating operations, custody of assets, and accounting
    • By separating the responsibilities for operations, custody of assets, and accounting, the accounting records serve as an independent check on the operating managers and the employees who have custody of assets.
  • Proofs
    • authorization, approval, and reconciliation.
  • Security measures
    •  locked cases, security guards, mirrors, security tags, cash registers, safes.

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