While it may take extra steps for businesses to initiate an accounts payable audit, using these solutions is almost always worthwhile. Even if no accounting errors are discovered, these tools give business owners peace of mind and sometimes help keep employees honest.
When the owners of BR Wholesale RV & Marine in Marshall, Michigan, hired James LeBelle to serve as the head of their company while they enjoyed their semi-retirement, they probably did not suspect they were placing their funds in unsafe hands. According to RV PRO, LeBelle has been accused of embezzling nearly $160,000 from the RV business' accounts. The source claimed a police report detailed the unauthorized use of 47 checks in addition to numerous other fraudulent transactions.
The Battle Creek Enquirer added LeBelle had taken the money to pay for his rent, food, insurance and other personal expenses. Police have been unable to locate him so far, but if found and convicted, he could spend up to 20 years in jail.
Had the RV business' owners conducted regular AP audits, they may have been able to deter the alleged thief from mishandling company accounts.