The list of questions below are non-exhaustive, they are basic safeguards that all firms should implement, if they have not already.
DO YOU:
-
Request for status reports periodically from your accounts staff?
-
Status reports should include, inter alia, overdue invoice reports, cash journal, profit/loss report, variance report etc.
-
Request for status reports periodically from staff who are overseeing the files?
-
Status reports may be daily/weekly/monthly, depending on the firm's size.
-
Maintain strict segregation of duties for staff?
-
For example, issuance of receipts must NOT be by the same staff receiving payment.
-
Have a policy against pre-signing blank cheques?
-
Pre-signing blank cheques is very dangerous and should be forbidden in any legal firm!
-
Cross-check payment of cheques and vouchers against the relevant file?
-
This is to ensure that all cheques and vouchers are for genuine reasons.
-
Monitor frequency of requests for cheque books and cheques issued?
DOES YOUR FIRM HAVE A POLICY OF :
-
Issuing receipts for ALL payments received from clients?
-
Reconciling receipts with bank statements at least once in a month?
-
“Two to sign”? (if you are in a partnership)
-
Refer to provision on “Claims Involving Miscoduct” in your Certificate of Insurance (for 2014 Certificate of Insurance, refer Clause 11).
-
Only allowing partners to keep the firm’s cheque books?
-
Storing away the firm’s cheque books in the firm’s safe at the end of every working day?
-
Ensuring that partners in charge of files review and “sign-off” on their files before a file can be closed?
If you have answered “NO” to any one of these questions, your firm is at risk!
The list of questions above are non-exhaustive, however, they are basic safeguards that all firms should implement, if they have not already.