Question

What are the common features of cash deputies?

Answer 1

Communication Management Communication
The behavior of managers in your business sets a tone throughout the work, but certain processes are needed to communicate the conditions of the right way to do business. Management integrity is communicated to employees through staff brochures and procedure manuals. These same documents provide employees with the necessary training on company policies and expected behavior. However, the enforcement of management's policies regarding financial security and fraud prevention is a major indicator of the organization's commitment to an effective internal control system.

Maintaining skilled personnel
Hiring and retaining skilled employees helps the business to accurately record year-to-year transactions by providing consistency. A poorly trained budget, for example, can make inaccurate entries that can be innocent mistakes or appear fraudulent. In any case, inappropriate entries should be avoided whenever possible.

Employee retention increases the comparability of financial records year after year. In addition, the auditor's confidence in the underlying accounting records increases as he recognizes the trust of the employees of the organization. This also reduces the auditor's risk of material misstatement of the financial statements of the entity.

Dissociation of Functions
Proper separation of tasks is an important part of internal control because it reduces the risk of errors and wrong actions. The operating system separates the responsible, accounting and administrative functions. For example, one employee opens inbound mail, the second prepares daily receipts for receipts, and the third applies for bank receipts. This type of division of labor precludes the opportunity for any employee to contribute negatively.

Keeping of records
Maintaining proper records ensures that documents are available for each business transaction. Records management includes the storage, security and storage of physical or electronic records. System renewal is important; Proper backup prevents the employee or managers from building phantom transactions on the underlying accounting records. A good records management system reduces operational costs, improves efficiency and reduces litigation risk.

Physical and Invisible Defense
Defendants protect unauthorized employees from accessing valuable company assets. Physical safeguards, such as door locks, or intangibles, such as computer software passwords, are also a necessary part of the organization's internal control system. Most business owners protect the inventory, money, and raw materials. However, blank checks, company stamps and signature stamps are things that require security but are often overlooked.