Federal Nursing Home Administrator Practice Exam

What is the purpose of a two-person procedure when handling cash?

1. To ensure that no single individual can commit fraud

2. To speed up the cash handling process

3. To discourage theft among employees

4. To ensure accuracy in cash counting

The correct answer is: To ensure that no single individual can commit fraud

The purpose of a two-person procedure when handling cash is primarily to ensure that no single individual can commit fraud. This practice creates a system of checks and balances, where two individuals must be involved in the cash handling process. By requiring two people, it significantly reduces the risk of fraudulent activities since both individuals are accountable for their actions. Each person's presence serves as a form of oversight, making it more difficult for improper actions to go unnoticed. While the other options may touch on important aspects of cash management, such as encouraging accountability and discouraging theft, the fundamental goal of the two-person procedure is to protect against fraud and ensure that both parties are involved in the handling and oversight of funds. This aligns with best practices in financial management, particularly in settings like nursing homes, where safeguarding assets is crucial.