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Do you think the same person who receives cash payments should also prepare the bank reconciliation? Give at least one reason to support your answer.
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Amy:
I do not believe that the same person should prepare the cash payments and the bank reconciliation. A company needs to have a check and balance and if you have the same person doing both then who is checking behind that person. Case in point, we have a local credit union where a lady was just charged with embezzlement. This didn't come up until after she retired and someone else was doing the statements and noticed a big discrepancy in the numbers. Same thing here at work. We are currently in the middle of inventory and if there is any discrepancy in the counts, then I have two people to check it before an adjustment is made. We are all human and not saying that people are criminals or untruthful, but we all make mistakes. There should always be someone checking behind another person.
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