When companies put off the use of accounts payable audit solutions, they may place themselves at risk of unpleasant surprises. These crimes can take a significant toll on businesses' bottom lines, but by acting early, they may be able to avoid irreparable damage.
According to the Fort Mill Times, the former controller for heavy-construction firm Mega Industries Inc. Paula Cathey has been sentenced to three years and five months in federal prison after an AP audit discovered the embezzlement of $561,000 from the company. She had worked at the Kansas City, Missouri, business for 14 years.
The Kansas City Business Journal reported that Cathey had stolen the money by writing herself fraudulent checks obtained from another employee's office. In order to cover up the transactions, which she authorized by forging executives' signatures, she altered records and destroyed bank statements.
The source noted that Mega Industries is one of the top general contractors in the Kansas City area, generating nearly $13 million in local billings in 2011 alone. For companies that see large amounts of money going in and out on a regular basis, it is crucial to monitor accounts using audit solutions. Though large enterprises may have bigger budgets than small businesses, embezzlement can still impact bottom lines significantly.