We all are aware of theft and fraud. They affect us in several ways: We lock doors, chain bikes, review sales receipts, and acquire alarm systems. A company also takes actions to safeguard, control, and manage what it owns. Experience tells us that small companies are most vulnerable, usually due to weak internal controls. It is management's responsibility to set up policies and procedures to safeguard a company's assets, especially cash. To do so, management and employees must understand and apply principles and how to apply them. It focuses special attention on cash because it is easily transferable and is often at high risk of loss.