How can businesses prevent skimming practices?

Preventing skimming practices is best achieved through regular inventory audits because these audits help in the detection of discrepancies between recorded sales and actual inventory levels. This method allows businesses to monitor for unusual patterns, such as sales that do not match the inventory or cash flow, which could signal that skimming is occurring. Regular inventory checks promote accountability among employees, as it creates an expectation for accurate record-keeping and can deter theft.

In contrast, while hiring external auditors can provide an additional layer of scrutiny, they typically conduct audits on a periodic basis rather than continuously monitoring operations. Having employee access to cash registers can increase the risk of skimming if proper controls are not in place, as it provides the opportunity for employees to manipulate transactions without detection. Minimizing transaction records can lead to a lack of necessary documentation for sales, making it difficult to track and verify transactions, thereby potentially facilitating skimming activities rather than preventing them.