22 Nov Keeping Records
Keeping Records
If recordkeeping is sloppy or incomplete, the likelihood of assets being lost or stolen and accounting records inaccurate is very great. For example, cash and checks left in a drawer until someone has time to process the information through the accounting system is a great temptation for a dishonest employee. A clean orderly environment improves efficiency as time is not wasted looking for what is needed, and paperwork is not shifted from place to place. In addition policies and procedures that address record retention, filing standards, and the like can play an important role in reducing risk. In fact, in the case of an audit a neat, organized filing system helps to create a perception of compliance. Keep in mind an employee who has difficulty finding paperwork or is never quite caught up may have a reason to hide something.