Question

Procedures that may uncover fraud in the cash receipts area include:

Answer 1

Procedures that may uncover fraud in the cash receipts area include daily reconciliation of cash receipts, surveillance cameras, and surprise cash audits.

Step-by-step explanation:

Procedures that may uncover fraud in the cash receipts area include:

1. Daily reconciliation of cash receipts: This involves comparing the cash register tapes with the recorded sales in the accounting system to identify any discrepancies.
2. Surveillance cameras: Installing surveillance cameras near cash registers can help deter and detect fraudulent activities.
3. Surprise cash audits: Conducting unannounced cash audits periodically can help identify any irregularities or discrepancies.

These procedures provide mechanisms to monitor and detect fraudulent activities in the cash receipts area, ensuring transparency and accuracy in the financial records of a business.