Having a strong system of financial controls in place can prevent businesses from suffering monetary losses. When employees are aware that AP audits are being used in an organization, they may be less likely to engage in misconduct.
According to The Daily Reflector, Daniel Kavanaugh, who served as office manager for Provia LLC in North Carolina, has been arrested on embezzlement charges. An AP audit revealed more than $80,000 missing from the medical firm's accounts, which investigators suspect the man stole over the course of several months in 2011.
The audit revealed that the theft had occurred when Kavanaugh used fraudulent business credit cards to gain access to $71,825.05.
The American Dental Association describes embezzlement as a crime of opportunity. Many times, those who steal money from their employers are not established criminals, but people who believe their actions will go unnoticed. The organization pointed out that a number of factors can open businesses up to theft, including poor internal controls, lack of supervision and too much power given to some employees.
One way to demonstrate to staff that they can't get away with taking from a firm's account is by performing frequent audits.