Suppose one person opens the cash receipts (checks received in the mail), makes the bank deposits, and keeps the A/R records. What top 3 potential problems could arise due to lack of separation of duties?
Why would a store offer a free purchase to a customer, who does not receive a receipt for a purchase already made by him/her?
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How to handle cash recepits?credit counseling
Suppose one person opens the cash receipts (checks received in the mail), makes the bank deposits, and keeps the A/R records. What top 3 potential problems could arise due to lack of separation of duties?
Actually, if all the cheques are made payable to the company, and crossed, not much can go wrong. You worry only if cash or cash cheques are received because then the person can take the cash for himself and fake the books at the same time. That%26#039;s why it%26#039;s better to separate the physical handling of cash and the bookkeeping.
Why would a store offer a free purchase to a customer, who does not receive a receipt for a purchase already made by him/her?
There are 2 parts to this. 1st, it could be the cashier offering some crappy gift to the customer if he doesn%26#039;t insist on a receipt cos then he%26#039;ll pocket the cash and his boss won%26#039;t know any better.
2nd, the company itself could be offering this free gift so that it can understate its sales and therefore, taxable profits, in its returns to the tax authorities and pay less tax.
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