There are many tasks that businesses need help with, which is why some decide to bring in contractors. One important responsibility that can be assigned to third parties is accounting, as some companies may not have the skills or workers available to dedicate to financial processes. Unfortunately, for one Michigan firm, this proved to have a negative consequence, as their contract accountants was found to have embezzled funds from the business.
According to The Morning Sun, Smith and Sons Meat Packing, based in Mount Pleasant, Michigan, was victim to an embezzlement scheme after an accounts payable audit revealed that the accountant hired under contract by the company had been stealing funds. Investigators state that Stephanie Lyon allegedly stole $25,835 from the firm during a three-year span.
WYEI-TV reports that in 2010, when the illegal activity started, Lyon is accused of double-signing and cashing 27 unauthorized checks from the business’ accounts. The following year, Lyon allegedly did the same with 21 additional checks, and forged seven more. For 2012, the investigation states that Lyon allegedly forged two checks and double-signed 15 more, which she cashed.
While most contract financial professionals do not engage in illegal activity, companies can still keep a close eye on their accounting procedures with accounts payable audits.