Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...

part of computerized records and are, therefore, not included in any
automated system checks and balances.
Manual check issuance systems require discipline to safeguard against the
entry of fictitious information into company records for an issued check.
Additionally, it is important that periodic inventory counts be conducted of
blank-check stock to ensure all checks are accounted for and “out-ofsequence”
check usage does not occur or go unnoticed.
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Tracking manually issued checks is not always the same as tracking
checks generated by an automated system. As such, it is critical to
maintain a record of manual checks, to establish a policy for
recording manual checks in the bookkeeping system, and to reconcile
these records.
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Reconciliation thresholds may also need to be adjusted for
manual checks.
Loss controls related to manual checks should:
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Assess the need for manual checks.
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Limit and control the number of people who can authorize issuance
of and sign a manual check.
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Safeguard, limit access to, and periodically inventory
blank-check stock.
■
Monitor and enforce mandatory data entry of all manually
issued checks.
■
Regularly audit/review manual checks.
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Reconcile bank statement information on a consistent, regular basis,
including follow-up and resolution of all identified differences.
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