Key Red Flags & Common Fraud Schemes
A sudden drop in sales despite normal foot traffic may indicate what type of fraud?
Non-issuance of receipts
What is the rule when verifying GCash payments before releasing items?
No reference number, no release of items
What tool can AOS use to speed up stock auditing using barcode scanning?
Barcode scanner linked to Excel/Google Sheet
Why must permits (DTI, fire safety, business permit) always be updated and displayed?
To avoid penalties, store closure, or compliance violations
Handling Resistance, Documentation & Leadership
If staff says “Trusted na yan” to skip a step, how should an AOS respond?
If a cashier records a cash payment as a card transaction and keeps the cash, what scheme is this?
Cash as Cashless scheme
Why must every card transaction have all three slips (Merchant, Bank, Settlement)?
Missing slips indicate possible fraud or incomplete transaction
What document must be used to report stock discrepancies?
Stock Transfer Discrepancy Report (STDR)
Which daily activity is the AOS expected to verify to ensure staff alignment?
Daily pep talks
What framework is recommended when giving feedback without resistance?
Impact–Behavior–Expectation (IBE) Framework
Why is non-issuance of receipts considered one of the biggest fraud risks?
It leads to direct cash loss (cash is pocketed without record).
How should voided transactions in POS be handled?
Strict approval process and full investigation
Why is “end-of-day balancing” of sales and stock cards non-negotiable?
Prevents discrepancies and ensures records match daily
What principle says: “If it’s not documented, it didn’t happen”?
Documentation principle
Why is proper documentation considered a “seatbelt” for AOS?
It protects against disputes, liability, and ensures accountability
Which staff behavior is a high-risk red flag, especially when the SIC is on day off?
Collusion among staff / Unusual staff schedule patterns
What is the proper turnover process between outgoing and incoming cashiers?
Outgoing counts first, incoming verifies, both sign with timestamp
What is the risk of auditing only 20 random SKUs out of 100+ stock cards?
Limited scope, incomplete picture of inventory health
What is the purpose of conducting turnover audits during SIC clearance?
To establish a clean slate before the SIC leaves
What does the principle “If I See It, I Own It” mean in auditing?
Every violation seen must be addressed, not ignored
What is the impact of falsifying time-in records or unplugging CCTV?
Time theft and concealment of fraudulent activities
Why is the beginning cash fund (“panukli”) important in preventing shortages?
Ensures smooth operations and prevents borrowing by staff
How can remote SOH monitoring help AOS supervise multiple stores?
Provides real-time tracking of stock, prevents overstocking/loss
Why should electrical safety always be checked during store visits?
To prevent fire hazards and mall safety violations
What is the purpose of the AOS Protection Pledge?
Commitment to uphold SOP, CoC, and protect assets, people, and brand