Managing Risks of Accounting Systems

Employee fraud and embezzlement are real risks. Here are some tips with some Accounting procedures:

• Make sure that all cash and cheques received are deposited each day, and not left overnight.
• Ensure receipts are made out for all cash received.
• Where possible cash should be checked by a second person.
• Monthly statements (where applicable) should be sent to customers.
• Ordering of cheque books, storage of unused checks, and authorisation of cheques should be someone other than the person issuing the cheques.
• Cheques should require 2 signatories.
• When requesting a cheque, the requisition should have supporting documentation with the requisition.
• While EFT and Bill Pay are the new way, this opens up greater risks if giving staff this authority. Either do not allow or only allow a Director or two to authorise by requisition.
• Bank statements, receipts, and supporting documentation should be checked monthly against the cash book entries by a person other than making the entry.