I interviewed all of the employees, including store managers and the personnel in the kitchen, who worked that day and who had access to the cash. Theft of company funds is one of the leading office crimes in the United States. In this industry, cash is more accessible, as it is a major part of the enterprise's balance sheet and daily operations. Thus, you need to be pro-active by using internal controls to manage the risk of being tagged by employee theft in the future. Most fraud experts concur that it is easier to prevent fraud from occurring than to detect it.
Preventive controls can be more advantageous and often more cost-effective.
When functioning correctly, preventing controls may help to avoid the costs associated with rectifying errors. Detective controls are generally more costly than preventive controls, but are nonetheless necessary. An entity may use detective controls to measure the efficiency of preventive controls. In addition, there are certain types of errors that cannot be controlled cost-effectively by preventive controls. Detective controls over cash receipts for the fast-food industry generally comprise record keeping procedures, such as proving cash register receipts to daily deposits listed on the bank statements, preparation and review of bank reconciliations by individuals not responsible for the handling of cash receipts, and other independent checks on performance.