Table 9 Internal controls needed to safeguard assets and ensure adherence to regulations in the cannabis industry
Internal controls needed | Reported by participant type | ||
|---|---|---|---|
Cannabis-related business owners count (%) | Certified Public Accountants that serve industry | Certified Public Accountants that do not serve industry | |
Physical security controls | |||
Cameras | 5 (50%) | 1 (20%) | 2 (22%) |
Safes/Vaults | 5 (50%) | 0 | 0 |
Locks/Fencing/Guards | 3 (30%) | 1 (20%) | 1 (11%) |
Support record-keeping requirements | |||
Cash logs/records/reconciliation | 2 (20%) | 0 | 3 (33%) |
Frequent inventory counts/reconciliation | 2 (20%) | 2 (40%) | 3 (33%) |
Technology to track inventory and sales | 3 (30%) | 3 (60%) | 2 (22%) |
Segregation of duties with cash/inventory handling | 3 (30%) | 2 (40%) | 2 (22%) |
No one alone with cash | 0 | 1 (20%) | 1 (22%) |
Drug test employees | 0 | 0 | 1 (11%) |
Review/oversight of classification of costs for Tax Code section 280E | 0 | 0 | 1 (11%) |