This should be the only person responsible for the process it would be hard to determine who was to blame if the petty cash came up short. The company COUld establish a rule that no petty cash cane be accessed during Jeff lunch break. I do realize that employees have to have a lunch break in that case Jose should be trained in this position as well he could manage the petty cash fund but their needs to be some form of internal control such as vouchers or tickets to determine who is responsible for what.
The company COUld also use technological controls such as scanner to record who performs what transaction. 3. Principle violated-Divide responsibilities for related transaction. The clinic needs to have a different person trained to either only enter charges or only enter payments in the system duties need to be separated to prevent fraud. A manager or some other personnel need to have access to her backed up files in case of an emergency. They also need to do independent reviews of the accounting system used to maintain these records.
Principle violated-Perform regular and independent reviews. Mr.. Sales immediately need to have regular and independent review done of the work being performed by his staff they could be robbing him blind. There are no internal controls in place and people are human and they do make mistakes. I would also think he needs to establish responsibilities for the employees it appears as if the company needs to do a complete overhaul. 5. Principle violated-Insure assets and bond key employees. It does not matter how much money Ms.
West would be saving by not having bonding insurance in place for the employees, if there were theft or fraud by the employees it could be costing the company much more than the cost on the insurance. Ms. West needs to look for another way to cut costs without this insurance they are unprotected from fraud and theft. The insurance policy needs to be put back into place. Problem 6-AAA May 1 Petty Cash Cataracts establish a petty cash fund.
