Accounts payable audits can be used by companies to uncover any instances of financial misappropriation, including embezzlement, duplicate payments and errors. This is why one business in Grand Haven, Michigan, conducted an AP audit to reveal illegal activity by one of its employees.
According to M Live, the former business manager of Summit Properties, Dana Sullivan, created an embezzlement scheme in which she bilked more than $422,000 from the company's coffers. After an audit uncovered the evidence of her theft, Sullivan was found guilty of one count of embezzlement of over $100,000 and another count of embezzlement from $50,000 – $100,000. She was recently sentenced to a minimum of two and a half years in prison for her crime, and she has also been ordered to pay back the stolen amount in restitution to Summit Properties, reports the source.
Investigators stated that Sullivan had managed to steal the funds from her employer by writing unauthorized checks to herself from Summit's accounts, writes The Holland Sentinel. Company owner Tom Speet told the source that he believes the illegal activity took place over a long period of time, as Sullivan had been an employee for 12 years.