Cash Larceny, Part Seven: Alteration of accounting documents in imprest fund accounts (continued)

Almost all organizations use a petty cash fund to disburse funds to employees who make miscellaneous purchases on their behalf. The fund's custodian must always have a sufficient amount of money on hand to pay for routine expenses of the organization. Most petty cash funds involve only a small amount of money. But, fraud examiners shouldn't be misled by the amount of the fund itself when assessing the risk of fraud. The true fraud indicator in a petty cash fund isn't necessarily the size of the fund itself, but rather the amount of funds that are cumulatively disbursed through the account each year. Significant disbursements can be made through small petty cash funds. 

Here are some standard procedures for petty cash funds: