A question of theft

Evidently, there is a problem in the management of shifts and the auditing of the money hence the front office manager named Chad refuses to take action of the situation. When conflict arose, the cash registrar’s earnings were found out to be short; Chad tried to look for the culprit. Critically analyzing the situation, how did Chad found out that there has been an amount missing?

He was so certain of the amount missing despite of his non-presence in the area and also the lack of eagerness to monitor the finances. Internal Control is the process to achieve the objectives with effectiveness and efficiency, reliable financial statements and strict compliance to the law. In this case, Chad can be classified as an ineffective leader for efficient workers.

His managerial skills would have taken care of the problem hence he neglected the idea because he was confident about his employees. Another problem is that there is no consistent financial report for every employee who dwells in the counter. For example, for every end of a shift the money should be counted and audited so that there would no discrepancies for the next employee to work and also it would be much easier to determine if there is a shortage in the finances.

For this instance, the manager must have the control over his employees and authoritatively impose the rules such that the employees would develop loyalty and honesty among the system.

I think the managerial position must be filled by a person that is experienced and also has good interpersonal skills so that the firm would not suffer from these small lapses.

Also I would like to point out that there should be a financial report on every change in shift so that the manager can monitor the movement of the money in the cash registrar. What is needed is the end amount after each shift. Lastly, the effectiveness and efficiency of a working group must come from both the leader and its subordinates, with this, there are limitless endeavors and opportunities for a good working system.

References

University Business Practices (2007). Understanding Internal Control. [on-line] Retrieved from: http://www.ucop.edu/ctlacct/under-ic.pdf on: March 5, 2008

Comptroller’s Handbook (2001). Internal Control. [on-line] Retrieved from: http://www.occ.treas.gov/handbook/intcntrl2.pdf on March 5, 2008