For public entities using cash registers, it is important to recognize that voids and returns can be used to cover up cash register theft schemes. To reduce the risk of becoming a target of such a scheme, remember to segregate duties: the person ringing up the sale should not be able to approve voids or returns.
One very simple internal control is the use of void and return forms at each register. The form should identify the amount of the void or return, the employee working the cash register, and the customer involved in the return. The form should require a manager’s approval of the void or return. If the manager is the person initiating the void or handling the return, a second person’s approval should be required. Once the void or return is approved, the form should be placed in the cash register drawer and maintained with the cash register tapes.
Date this Avoiding Pitfall was most recently published: 07/22/2016