Fraud Risk Self Assessment-Good Yes/No Questions to Ask Yourself

1. Does the person who handles incoming cash receipts also record transactions?

2. Is a cash register used in the business?

3. Is a bank lockbox used for processing customer payments?

4. Are deposits made daily and secured prior to depositing in a safe?

5. Are incoming checks restrictively endorsed?

6. Is the monthly bank statement received and reviewed by someone other than the person handling the cash and checks?

7. Is the monthly bank reconciliation completed by someone other than the person handling the deposits or with check-signing authority?

8. If there are discounts/coupons, are they approved by management?

9. Are returns, voided transactions, and credit memos greater than 10% of all sales transactions?

10. Do cash transactions exceed 20% of all sales transactions?

11. Are actual, itemized receipts required for reimbursement?

12. Is a detailed list of names of guests and the type of business activity or entertainment required for expense reimbursement?

13. Are employees encouraged to report concerns about fraudulent activities?