What are two examples of strong and weak internal controls in organizations where you have worked or have firsthand knowledge and how are these different?
I once worked for a chain retailer with a small staff most of the time. During closing whoever was available would assist in the close outs of the registers. [ The money was sometimes counted out by myself and another manager due the fact we have 4 registers. However, after we would count each other’s registers for back up. We each had to sign the deposit slip and the money bag. At the end
of the night the money bags were placed in the safe tile morning when someone else would come in and make the deposit. I thought that there should only have been one person in charge of closing out all four registers while the other person recounted the goods. If possible we should have had a third party to witness the transaction, but that wasn’t always the case. Moreover, the floor managers should have had a better knowledge of the petty cash other just our store manager. I feel this would have left less room for theft and temptation as we had already lost one store manager prior. She stole petty cash from the store and merchandise for 8 years. There was no one to regulate her internally.
In the past I have worked for a small business where they would have two people close out the register at closing time, they would also have more than one employee working on the same register which I did not like because when the register would come up short it was hard to detect who was on the register at the time. The things that I would do to improve the controls would be to have only one person to close out the register and also add another register so that the employee's were not using the same register. I would also have the employee's count their register before and after their shift and then have another to confirm what they counted. ]
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