Spar Store: Retail Fraud Case

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Spar on its day to day will compare daily cash sales to the actual cash found in the cash register drawers. If a surplus or shortage is discovered, the difference will be recorded in Cash Short (Over); a debit balance indicates a shortage (expense), while a credit represents an overage (revenue). As a business looks to improve cash management or add to the available cash supply, a number of options are available. Some of these solutions are "external" and some are "internal" in nature. External solutions include: Issuing additional shares of stock, borrowing additional funds . Internal solutions include: accelerate cash collections accept payment via credit cards, and cash discounts for prompt payment, Postponement of cash outflows, cash control -- Internal control for cash is based on the same general control features introduced in the previous chapter; access to cash should be limited to a few authorized personnel, incompatible duties should be separated, and accountability features (like prenumbered checks, etc.) should be developed. Spar store account for, protect and manage their cash against internal Retail Fraud [IRF] which usually involves a cash register transaction. Spar store merchandise and cash are most often targeted through fraudulent transactions involving refunds, gift certificates, false voids, paid outs, false transfers & vendor collusion.…show more content…
The right cash handling choices are therefore crucial to any business and the cash acceptance devices that have a high protection factor will be a deterrent to violent crime. The security and processes that limit the amount of cash available at any given time and secures the premises or cash offices. Spar is highly automated and cashier risk is reduced. a retailer invests in, the lower the risk of
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