At Oceanic Plastics Ltd., three anonymous complaints were discovered in the employee suggestion box, alleging that the company's internal financial controls over cash management are weak and that the head cashier is embe

Cashier fraud: Red Flag Indicators Following are the red flag indicators: Frequent receipt of gifts; Disproportionate increase in the assets of the cashier; Unjustified favouritism shown to certain parties. Multiple refunds or cancellations just under review limit. Excessive number of adjusting entries during specific period. Change in lifestyle of the cashier Collusion between cashier persons making payments Investigation of the cashier activities on the basis of Red Flag Indicators Forensic Auditor 'FA' should access the cashier's emails and all correspondences, company mobiles, as per the company's policy. Lifestyle of the cashier should be investigated to ensure that it is commensurate with the salary drawn from the company. In case if cashier has history of debts there is likelihood of engaging in opportunistic fraud. Hence FA should initiate background check of the cashier. Bank statement of the cashier has to be examined. Enquiry into the assets acquired by the cashier or his close relatives during the last few years must be undertaken. Most companies ask for annual declarations in this regard and for filing of income-tax acknowledgments. These can also be looked into. Deploy a market intelligence executive to keep a track on movements of cashier and his family members. This has to be done discreetly. Enquiries can also be made with the HR Department of earlier employer to ascertain whether there have been any similar allegations levied against him.