Which is NOT an effective control to prevent store skimming?

• A. Installing visible video cameras to monitor a store's cash registers
• B. Reconciling the physical inventory count with the perpetual inventory records
• C. Reconciling the sales records to the cash receipts
• D. Restricting the accounts receivable clerk from preparing the bank deposit

Answer: (C)

The concept tested is the difference between preventive controls and detective controls in cash handling at a retail store. To stop store skimming, controls should reduce the opportunity to skim before the act is completed.

Visible video cameras at the cash registers act as a deterrent and a preventive measure—employees are less likely to skim when they know they’re being watched. Limiting who can prepare bank deposits is a separation-of-access control that prevents cash from being diverted by the same person who handles receipts, another preventive approach.

Reconciling the physical inventory count with the perpetual inventory records helps guard against loss of goods and ensures inventory accuracy, which is valuable for overall asset protection but doesn’t directly prevent cash skimming at the point of sale; it targets inventory shrinkage rather than cash theft.

Reconciling the sales records to the cash receipts, however, is primarily a detective control. It compares what the store should have collected (sales) with what was actually received (cash). If skimming occurs, a discrepancy will emerge, but the theft has already happened by the time the reconciliation flags it. That’s why this measure is not an effective preventive control for store skimming.