TIPS FOR MAINTAINING CONTROLS
|Audit||Periodically audit your check stock to ensure all unused checks are accounted for.|
|Bank accounts||For a better audit trail, consider separate accounts and separate employees for accounts payable and accounts receivable.|
|Bank statements||Examine statements immediately when they are received, to detect fraudulent account activity.|
|Segregation of duties||Have someone independent of check-writing responsibilities reconcile your bank accounts. Rotate personnel on a quarterly basis.
Always provide dual approvals on wire and ACH transactions. This ensures more than one employee is reviewing them.
|Check stock||Keep your check stock locked up at all times. When checks are printed, every check should be accounted for, including voided, jammed and cancelled checks.|
|Document management||Protect all documents by locking them up and always maintaining a "clean desk" policy. If documents need to be discarded, shred them.|
|Employees||Screen new employees with background checks before making a job offer, even part-time employees or contractors.|
|Paper vs. electronic||Electronic processing and operations reduce risk and increase controls by making it tougher to destroy and hide important documents.|
|The "trusted" employee||More times than not, the "trusted" employee is responsible for embezzling funds. They get forgotten about because they've been around a while and they know the system.|
|Protect all accounting documents||Secure check stock, signature equipment, invoices, statements and other critical information.|