The policy of providing management with voids is to verify that all
transactions are accounted for and to also deter theft of cash. The
pre-numbered checks are an excellent method of verifying and
reconciling all transactions. Separation of duties is also an efficient
way to control cash receipts. For instance, voids must be processed
by an individual other than the one collecting the cash, preferably
management. A lockbox for all cash collected is another safeguard of
cash receipts.
A proactive approach to reduce the likelihood of theft is to require
HR to complete background checks of each new hire. Implementing
and enforcing a policy of mandatory vacations and cross training will
also deter fraud/theft (Romney et al., 2020).
Reference
Romney, M. B., Steinbart, P. J., Summers, S. L., & Wood, D. A. (2020).
Accounting Information Systems (15th ed.). Pearson Education (US).
