How would you handle the following situation: You work in the payroll department of your employer. This means you know everyone’s salary. You have noticed that an employee (who has access to customer cash receipts) has bought a $90,000 sports car. This person only makes $25,000 per year and to the best of your knowledge, is making mortgage payments on their house, and supporting 3 kids. What do you do?
An employee who has access to customer cash receipts had chances that he might made some misappropriation in cash balances. In such case one can do the following steps:
· As an employer, you deserve the right to ask the employee about the sources of fund through which he had bought the car.
· You should reconcile the cash books accounts of last month to present date and wherever necessary take external confirmation from third party also for respective payment and receipt.
· Independent Physical Verification of cash should be made immedatiely.
· Records of Employee personal bank statement should be verified.
· Inform this matter to the board/management of the company.
· Suspend the employee till the matter does not resolve so that the employee cannot tampered the real facts.
· If the employee found guilty for misappropriation of cash, necessary legal actions should be taken against him.
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