Having numbered checks is a great control to ensure the accuracy of the
revenue earned at the restaurant. This type of internal control is a cash control.
"Record keeping requirements exist throughout the cash collections process. A
record of cash collected must be maintained by the employee responsible for
accepting the cash. This could be in the form of a cash register tape, a revenue
log, a pre-numbered receipts book, etc" (University of Pennsylvania, 2020).
Instead of throwing out checks that contain mistakes, voided checks are kept to
maintain the chain of sequence. This makes it much simpler to notice a
missing check. Potential fraud here could be a situation where a customer pays
in cash, the cash is pocketed, and the check destroyed. Without numbered
checks it would be very difficult to notice the fraud happened. Credit sales can
also be reconciled to these numbered checks if they are tied to the check
number. A more effective way would be a POS system that takes over the
manual process of reconciling check numbers to payments. Effective internal
controls for the POS system would include a requirement for a manager to
void any mistakes and a reconciliation at the end of a shift for employees.
Reference:
University of Pennsylvania. (2020). Operational Internal Controls. Retrieved
from: https://oacp.upenn.edu/audit/audit101/internal-controls-
guidance/operational-internal-controls/
