Accounts payable audits are not only able to find evidence of embezzlement within organizations, but they can also reveal other instances of financial misappropriation, such as duplicate payments and improper accounting procedures. This is exactly what one AP audit found within a local fire department in New York.
According to the Times Herald-Record, the fire department in Otisville, New York, is under investigation after it was revealed that the organization had been conducting improper accounting procedures for over two years. One practice included not listing checks in numerical order in the software that was used by accounting employees, which resulted in more than 3,000 checks missing from the payroll registers. Additionally, investigators discovered that approximately 22 checks that were given out by the department were duplicate payments.
Otisville officials are being blamed for the misappropriation, as it is believed there was a severe lack of oversight which led to the improper practices, the news source states. These leaders said that steps are currently being taken to correct the errors, and they will be putting policies into place to prevent similar situations from happening in the future.
No matter the industry, businesses and organizations can use accounts payable audits to discover any evidence of financial noncompliance that might be occurring.