For businesses to operate efficiently and achieve the best possible financial outcomes, it is crucial for leaders to keep a close eye on all accounts. Even if the individuals in charge of a company's transactions are trusted, audit solutions are necessary to ensure that workers stay honest.
John Coston, who formerly served as the operations manager at Diamond Transportation Services in Springfield, Virginia, recently pleaded guilty to embezzling more than $400,000 from the company between 2010 and 2011. He explained that he took advantage of his access to payroll systems and used former employees' personal information to issue himself additional payments.
Coston faces a maximum of 20 years in prison.
Dentistry Today noted that for many companies, trust is one of the biggest risk factors when it comes to fraud going undetected. The source pointed out that faith in one's workers should not become a substitute for strong financial controls. Even those held in high regard in the organization can be tempted, and it is important not to let personal feelings get in the way of strong business practices. Conducting frequent AP audits can be part of an effective embezzlement prevention strategy.