The owner of a retail hardware shop has approached you for assistance in designing appropriate control procedures that would help in safe guarding the assets of the business against possible losses through theft and fraud. He is more particularly concerned about loss of cash and stocks. All sales are made across the counter and in cash onlyRequiredFor each of the following assets, suggest ten practical control procedures that the owner of the retail hardware shop should implement to minimise possible losses through theft and fraud:Cash

You are required to suggest ten practical control procedures that the owner of the retail hardware shop should implement to minimize possible losses through theft or fraud:

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.