My Local Merchant: Subway Continuing on from Unit 5, I will observe and discuss how my local Subway most likely accounts for, protects and manages their cash. “Employees steal because they can”, (Collins, 2013.) Cash is such an important current asset to a business, especially for the every day running of it, so ready access to cash is crucial. Therefore, every company must utilize safeguards to protect and manage their cash. An alarming statistic in one of The National Restaurant Association’s (NRA) reports shows that employee theft cost $8.5B to its members in 2007 – the equivalent of 4% of food sales. Furthermore, only 10% of employees do not commit fraud in any situation, while 5% do commit fraud, and the other 85% will actually consider …show more content…
To thwart armed robbery, Subway should have a secure safe on site to store cash, and have video surveillance cameras inside and outside the establishment. Here are some examples of ways in which Subway’s owner should be implementing, to combat internal fraud: 1. Develop, document, communicate and enforce cash management procedures. - Keep cash handlers to a minimum. - Know who is responsible when cash is drawn out of the register at the end of shifts or at the end of the day. - Have guidelines for petty cash handling. - Make consequences clear (such as penalties enforced) if someone fails to follow correct procedures. 2. Train every staff member who handles the cash, how to use the register correctly. - Lower the risk of employees mis-ringing items, for example, just to complete the transaction and keep customers from waiting. - Separate employees taking in money from those who spend money. 3. Conduct routine, as well as surprise audits and video surveillance checks. - Regular accounting audits of cash receipts and comparing them to transaction records, is good cash
The control of cash at Sands is further subdivided into accountability, standard operating procedures during filling and security at the countroom. Firstly, individuals are held accountable for the cash charged out to them and large shortages were grounds for dismissal. Secondly, formal procedures have been put in place for the transfer of chips. These procedures include filling the opener
A few controls that an organization can look into to reduce the danger of cash receipts deception incorporate utilizing cash registers that include interior tapes that can't be altered, carrying out surprise asset counts and contrasting money receipt tapes with actual money within the drawer, encouraging clients to keep their receipts by expressing that they are needed for exchanges, consecutively numbering all money receipts and carrying out reconciliations and abstracting bond insurance on every worker taking care of money
This shows a major breakdown in managerial controls that a low level employee was able to take steal money over the course of a couple of years without ever being suspected. This is a prime example of why internal controls are so vital and why even the government needs to be audited. Ruiz
Offices should have a well written payment and collection policy, in order to get the pay. When it involve payment or money make sure that a patient understand why they need to pay. Its important the staff should be familiar with the policies because we are responsible for relaying the information to a patient. The policy should be post at the receptionist area and provided or explain in case a patient don't know how to read. The consequences of unclear policy can cause a lot of problem to a patient and the staff.
All businesses must account for their cash, as well as protect and manage any cash transactions. Safeguarding cash and assets correctly can lead to having a successful and long lasting business. Local merchants must account for their cash by doing daily bank runs and also using a control structure to ensure their assets are safe. Having an accounting system that follows control procedures and proper implementation of policies allows a company to account for cash. The two methods that can be used to account for cash include, cash accounting or accrual accounting. This is the process of recording receipts and expenses, but the difference between the two methods is simply the time in which expenses and receipts are recorded during each operating cycle.
There should be one person (A) that has visitor fill out the forms and files them, also keeping a tally of the number each day. And a second person (B) collects the cash and deposits it into the lock box.
Many cash frauds are difficult to detect when the fraud is related to unrecorded transactions. The proof-of-cash tool allows identification of unrecorded transactions. It shows that all receipts and disbursements recorded by the bank reconcile with the
Greet customers in a friendly respectable manner, while scanning items and counting the appropriate amount of money, clean up our station when there are no customers, never be idle. At the end of the day I would take my register tray out and count out the amount of money I have made for the day and fill out a form to note how much and take a certain amount out and place it in a bank vault to keep it safe until pick up, while counting the money I would make a receipt how much exactly was in the register and refill the change for the next person who uses that tray and lock the tray in a cubby and give the key to the person at the head of the desk.
For many businesses employee theft is a growing problem. In a Business News Weekly article “Employee Theft Rising; Expected to Get Worse”, at the loss-prevention consulting firm “Jack L. Hayes International” conducted a study of 23 large retail companies. It found 71,095 dishonest employees were apprehended in 2012, up 5.5 percent from 2011, 7 percent higher than the previous year. Any business has the right to protect itself from
At my current job as a cashier at the airport, I am responsible for watching the entire store. Making sure nothing is missing and especially the cash in the drawer. When I come in to start my shift. I have to make sure i count the money and make sure there is a certain amount of money in the drawer. I then have to sign a form stating that I counted the money. I then proceed to count how many sunglasses are on the display because customers are coming in and out daily so we cant assume that nothing is missing. At the end of the of shift, the supvervisors come in and re-count the money in the drawer to make sure that the amount of money is there and is accurate. For example, lets say if you were short two dollars,they will investiage and find out what happened. This can be by checking the cameras you might have giving the customers in correct change. If they could not find out what happen then the cashier will get written-up. I
senior management must take an offensive stance against the five conditions that precipitate fraud with a clear plan that limits the
To identify the current weaknesses in the payroll and cash handling systems within Cookridge Carpets
Money - Assign one person to work the cash register all day to eliminate the potential for mistakes
Fraudulent actions by employees, customers and vendors cost organizations around the glove about $3.5 trillion annually (Kroll, 2012). Kroll feels a critical element in preventing fraud is creating a corporate culture that discourages fraudulent behavior. Conducting a fraud risk assessment will help
CIO assumed that the process should go smoothly since it consists only of software installation and employee training. However, they found out that there are more than these two steps supposed to be carried out in order to get the system up and running. Trying to accomplish this task fast, the project manager Skippy Smith did not pay appropriate attention to researching and creating the complete list of commands that produced receipts. Both Smith and the vice president of service, who helped create the list, did not consider any other stakeholders except tellers. As a result, accounting, real estate, and collection department did not have a chance to contribute to the project and assist with the list of commands needed for their use. Such attitude resulted in the incompleteness of the total commands provided to their vendor, Techsource, who discovered such mistake only at the implementation stage. Moreover, the project manager also did not coordinate with Vendor about upcoming updates for their host system that brought even more confusion to Techsource since they were supposed to adjust all the commands again to work with new receipt formats. Throughout the implementation stage of the project other stakeholders were affected. Testing mode for laser printers slowed down the work of the tellers; consequently, such situation led to dissatisfaction of the bank customers. The tellers and other employees of the A-bank were also disappointed in the system because it faced