No matter the organization, where there are accounts payable, there is the potential for fraud. While many employees are honest, business leaders must take measures to guard against damage caused by the few that may not be. AP audits can prevent dishonesty from translating into lost revenue.
The Sun Herald recently reported that a couple from Jackson County, Miss., have been accused of embezzling from the Mississippi Gulf Coast Dart Association. Vica Ann Dees and Bryson John Dees allegedly took more than $14,000 over several months using a debit card tied to the club's accounts. The couple had served the organization as treasurer and vice president, respectively.
The group's president, Randy Winchell, explained to the source that some of that money was planned to be used for charitable giving to St. Jude Children's Hospital and the American Cancer Society of South Mississippi.
"When you put all your eggs in one basket, you better watch that basket," James Perez, partner at the accounting firm Pisenti & Brinker, told the North Bay Business Journal.
Companies may be able to prevent embezzlement by taking steps toward better monitoring. AP audits can play a role in that process, giving leaders greater insight into whether all funds are being properly used.