Purchases of inventory items should be authorized by someone who does not normally maintain inventory payment records. Access to inventory items should be restricted, or the items closely monitored. Inventory should be physically counted and reconciled to the inventory records periodically. Management should review the reconciliations periodically. Sales should be recorded immediately as they are made.
Cash is especially susceptible to theft.
Different individuals should be responsible for handling cash and reconciling the cash count. Only the individual responsible for custody of cash should have physical access to the cash. Cash should be reconciled daily. Duties should be rotated periodically. Close supervision can substitute for some controls when any of the above recommendations cannot be implemented.