When it comes to embezzlement, neglecting to use audit solutions regularly can be a devastating mistake. Without utilizing financial monitoring tools, companies put themselves at risk of enduring significant monetary hardship. By keeping track of important balances, as well as how money is moving between accounts, businesses can catch theft before it's too late.
In the case of United Milwaukee Scrap, audit solutions might have come in handy. According to the Journal Sentinel, the firm's former human resources manager, Jacqueline Fox, has been charged with embezzling $1 million. The crime occurred during the past six years and remained undetected until the company's vice president, Steve Lewinsky, accidentally discovered one of the many fraudulent checks Fox had been writing.
To steal the money, the source explained, Fox used her position to authorize direct deposits in the names of staff members no longer with the company. Instead of the payments going to those individuals, they were redirected to her personal accounts. Lewinsky found out about the operation when a current employee received one of the mock checks instead of his own and returned it to the business. Lewinsky tried to get the disbursement to its rightful owner, but found in the process that the worker was no longer on payroll.
In addition to this misconduct, Fox also made out additional payments to herself totaling nearly $13,000.
Audit solutions are crucial because in cases like United Milwaukee Scrap's, there's no telling how much longer misconduct could have occurred if Fox had not made a simple mistake. Instead, executives should be in control of their accounts at all times, and they can do this through frequent yet easy inspections. One expense management firm noted that taking this pro-active approach is beneficial in more than one way – if fraud is present, it can be uncovered early, and if it's not, businesses still gain valuable insight into how funds are actually being allocated, which can be useful for more effective budgeting.