Just because an employee has been entrusted with the safety of a company's funds does not mean they should not be subject to scrutiny when money disappears. Performing an AP audit can save businesses time and money by catching fraud early.
According to The Associated Press, William McNichols used his position as the finance and business manager at Washington, D.C., law firm Trister, Ross, Schadler and Gold to embezzle more than $730,000 from his former employer. He recently pleaded guilty to the charges, agreeing to pay restitution, but could face up to 20 years in jail.
The FBI claimed that McNichols had begun stealing company funds in 2004 by making extra salary payments to himself, as well as issuing checks from the organization's accounts in order to pay off personal credit card debt. The law firm did not discover the fraud until 2011.
When businesses neglect to address suspect charges with audit solutions, they may open themselves up to significant losses. Had the law firm employing McNichols incorporated periodic audits as a part of their regular operations, they may have caught the executive's misdeeds much sooner.