A register disbursement scheme is easier to conceal when register employees have the authority to void their own transactions.

• A. True
• B. False
• C. It depends on the size of the company.
• D. Only supervisors can authorize refunds.

Answer: (A)

Allowing a register employee to void their own transactions weakens the control that prevents cash misappropriation at the point of sale. Voiding a transaction can erase or hide evidence of a disbursement, so an employee can take cash from a customer and immediately cancel the sale, making the cash disappearance harder to detect during reconciliation. With no independent check on voids, the till can appear balanced even while theft occurs.

The solution is to separate duties so the person who handles cash cannot also authorize or void their own transactions, require supervisory approval for voids or refunds, and perform regular, independent cash reconciliations with system logs to detect unusual void activity. This strengthens the control environment and makes concealment much more difficult.