Segregation of Duties
1. Segregation of duties Segregation of duties means that the related activities should be handled by different clerks. The management should define individual employee responsibilities for inventory control. This establishes a climate of accountability. 2. 3. 4. 5. 6. 7. Splitting responsibilities makes different staff responsible for distribution and receiving, and control access to inventory. These separations of duty are set in place to make it harder for one employee to commit inventory theft without having to include an accomplice Installation of surveillance cameras. Install security cameras to detect theft in warehouse. Watch for unusual behavior on the security videos. The presence of unauthorized personnel in warehouse should alert the management a problem exists. Physical security. Good physical security is another way to stop inventory theft. All merchandise should be physically guarded and locked; access should be limited to authorized personnel only. In stalling time locks and alarms can also help prevent theft. Keeping a record of custody. Keeping an inventory record of custody can remove easy opportunities to steal inventory (Wells, 2008). A record of custody can provide a chronological list of steps that show the transaction of inventory from start to finish. When the record is poorly maintained, the chances of the theft increase because the chance of being caught decreases. Running physical inventory. Like accounting audits, the management can make physical inventory checks a surprise to determine if the inventory control system is the same as the physical count of the. Generally, the more frequent the inventory audit the better able the management will be to spot and correct the problem. Fraud reporting hotlines. It is also helpful to encourage employees to anonymously report suspected frauds to company hotlines or Web pages. Training and education. Any education or traning should be emphzised the illegal conduct in any form eventually costs everyone

Get Your Essay

Cite this page

Segregation Of Duties And Segregation Of Duties Segregation Of Duties. (June 12, 2021). Retrieved from https://www.freeessays.education/segregation-of-duties-and-segregation-of-duties-segregation-of-duties-essay/