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(a) Cash
- The shop should ensure that the persons dealing with cash are trust worthy, competent and well trained in their duties;
- Only specific persons should have the responsibility of receiving cash from customer. There should be clear reporting lines of these cashiers within the organization;
- An appropriate method of recording the cash collected should be put in place in the retail shop such as the use of cash registers to record the receipts or a computerized system that will be able to record the cash collected and issue a receipt to the customer;
- At the end of the day, cash count should be carried out by an independent person in the presence of the cashier. The physical cash should then be reconciled to the expected amount as per the cash register record. Any variances should be investigated;
- The cashiers should be supervised and surprise cash counts should be carried out by the supervisor;
- The cash collections should be kept in a safe;
- Money should be banked regularly, say on a daily basis by an independent person;
- Physical security measures such as employing guards should be put in place;
- The recording of the cash receipts in the ledger should be done by an independent person;
- Monthly bank reconciliations should be prepared.
b) Controls over stock
- An appropriate inventory system should be put in place. This should be able to capture all stock purchases and up date the stock balances with every sale made. All stock items should be appropriately coded;
- All stock purchases should be accompanied by a goods received note that is used by an independent person to update the stock records with the receipts;
- All issues of stock from the store to the shop should be authorised by a senior person and the stock movement up dated in the inventory system;
- There should be adequate documentation of all stocks returned back to the store or warehouse. The stock records should be updated with such returns.
- On a monthly basis a stock count should be conducted. The physical stock counted should be reconciled to the expected stock as per the inventory system;
- Closed circuit TV cameras should be installed to deter and detect shop lifting;
- Unauthorized persons should not be allowed into the shop premises;
- Security measures should be put in place to ensure that employees do not carry stolen items when leaving the premises; e.g. inspection locks etc.
- Stocks write offs should be authorised by a senior responsible official
Wilfykil answered the question on February 22, 2019 at 06:59
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