It can be difficult for a business owner to tell the difference between a loyal employee and a worker who may be covering up a crime. For this reason, every company should use accounts payable audits as part of their financial controls. This way, any mismanagement can be detected before it damages an organization.
According to the Frederick News-Post, Joy Wolfe of Maryland was recently sentenced to eight years in prison for embezzling $450,000 over the course of four years from her former employer, Boggs Environmental Consulting. The source noted that an investigation originally discovered more than 1,000 fraudulent checks adding up to $716,000, and Mark Boggs, the firm’s owner, claims his losses total more than $1 million.
Boggs’ much higher figure stems from the hardships he endured during the years Wolfe worked at his company as an accountant. He recalled that the impact was immense, with the organization regularly struggling to pay its bills, and payroll suffered as well. In fact, Boggs said that there were times when employees couldn’t even be paid.
Wolfe used the money to fund a gambling addiction as well as pay for other personal expenses. A separate article from the Frederick News-Post pointed out that some of the checks were made out to Wolfe’s children, who cashed these payments but were allegedly unaware of the crimes at the time.
With the help of audit solutions, businesses may be able to avoid the losses that come with internal fraud.