1. A cashier cashed a check from a customer in payment of an account receivable, pocketed the cash, and concealed the theft by properly posting the receipt to the customers account in the accounts receivable ledger.

Segregate Custody & Recording

No Segregation of Duties

Segregate Authorization & Recording

Segregate Custody & Authorization

2. The administrative assistant to the CEO receives supplies ordered by the office manager and processes the payment (check) for the CEO to sign.

Segregate Custody & Recording

No Segregation of Duties

Segregate Authorization & Recording

Segregate Custody & Authorization

3. The controller does the bank reconciliation each month and processes (prints) accounts payable check runs weekly

Segregate Custody & Recording

No Segregation of Duties

Segregate Authorization & Recording

Segregate Custody & Authorization

4. An employee in purchasing approved a PO to purchase a computer and then used the UPS tracking information to receive it at the warehouse dock.

Segregate Custody & Recording

No Segregation of Duties

Segregate Authorization & Recording

Segregate Custody & Authorization