Problem
Cash is listed first on the balance sheet because it is the asset most readily available to pay off debt or use in operations. Cash is also one of the assets that most often grows legs and walks away. Therefore, it is important that any business protect its cash; it does so through internal control procedures. Please start by defining internal control, and then discuss specific procedures related to cash.
Skimming differs from theft in that the cash is taken before it is recorded or put in the register. Think of the scenario where a customer purchases a cup of coffee for $3.00. The cashier takes the $3.00 and provides the customer with the coffee. The $3.00 does not get placed in the register but in the pocket of the cashier.
How might businesses deter or prevent this type of fraud?