Never allow the same person who reconciles the bank statements to also sign the checks. Petty cash should be kept under strict controls. Anytime there is cash around, there s a potential for abuse. Independent work is fine unless it means total autonomy. This breeds feelings of control, power and ownership over company funds.
Minimal supervision creates an opportunity for fraud.
With no one looking over a clerk s shoulder, he or she could easily rig the books for embezzlement. You probably wouldn t post a job without offering vacation and sick time. But you may think yourself lucky if an employee never calls in sick and declines vacation time, citing a heavy workload. However, this is a clear danger signal, especially if the employee refuses offers of help from others. Embezzlers can t afford to go on vacation or call in sick, because that leaves their work open for others to potentially spot discrepancies.