Having prenumbered checks can reduce theft and fraud within the restaurant, so
management needs the numbered checks to make sure the restaurant can track all items as
well as voided checks and it also gives management a list of inventory needs so he can
order the right foods, so they don’t run out. Although it seems like a lot to keep all the
numbered checks for the night, in the end it can keep fraud from happening. Restaurants
and Small businesses are most vulnerable to two types of fraud from within: asset
misappropriation and corruption. Moreover, according to the study, the average length an
occupational fraud goes on before discovery is about 18 months. By recognizing the
common warning signs or red flags of these schemes early, businesses can reduce or avoid
losses. (Wells,2003) Using a POS system can help management control the checks and
keep records as with smaller business its easier to commit fraud if a system is not put
place. Employers and workers need to learn about fraud and how to report it, and CPAs
can greatly assist small businesses by providing such antifraud services. Eliminating fraud
completely is not possible, but with reasonable measures, its impact can be limited.
Preventing fraud from occurring in the first place, however, is the only win-win situation.
(Wells,2003)
Wells, J. B. Y. T. (2003, March 1). Protect Small Business. Journal of Accountancy.
https://www.journalofaccountancy.com/issues/2003/mar/protectsmallbusiness.ht
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