In this situation stronger internal controls need to be used.

One option would be for the employee in

the electronics department take the product directly to an available cashier, and watch the cashier
receive payment from the customer. Another control that could be implemented is putting a security
device on the electronic product that can only be removed after payment is received. This is currently
done in stores like Best Buy and Walmart, many of these security devices has special tools that need to
be removed otherwise the product will become damaged.

n this example, segregation of duties would work best. Not one single employee should be able to
process the payroll and then hand out the checks when the payroll process is completed. Ideas to
prevent fraud here would be to have an employee do the data entry of the payroll, another employee
cut the checks for the employees, and then a third employee would be used to hand out or mail the
checks. With direct deposit you must verify your identity at the bank which will make it harder to create
a fake employee or to continue paying a terminated employee.

Here again the segregation of duties could be used to tighten the internal controls. You should have one
employee input the invoices into accounts payable, another employee processes the checks, and
another person sign the checks and mails them to the vendors. Another option would be to implement
a PO (purchase order system) where a PO is required and approved before a payment can be made.
One employee could issue the PO while another employee would input the invoice associated with the
PO. As with employee direct deposit many vendors now except direct payments into their banking
accounts which would also eliminate the need for paper checks.