For internal fraud to occur, there must be opportunity. When account payable audits are rare or nonexistent, some staff members may take the chance to exploit these shortcomings for financial gain.
According to WGCL-TV, a family of three from Lawrenceville, Ga., was recently charged for several crimes related to her husband, Joseph D’Souza, more than $600,000 and her daughter, Karen D’Souza, more than $83,000.
WAGA-TV noted that suspicions arose when workers at the dental office heard that Rosemary D’Souza owned two homes in Florida. Leaders subsequently checked the company’s books and found evidence of misappropriation.
It’s important that business owners treat audit solutions as a regular part of their financial controls and not purely as a reactionary measure. If organizations only audit when something is amiss, they may inadvertently allow large amounts of money to go unaccounted for.