If organizations don’t include frequent accounts payable audits in their financial monitoring plans, disaster can strike. By managing funds effectively, businesses can prevent theft before it takes its toll.
According to the Connecticut Post, Dominique Phravixay and her boyfriend, Cayenne Dew Phaosoung, are accused of embezzling $40,000 from a Westport insulation firm. The two had worked at EcoLogic as a bookkeeper and a manager, respectively.
An AP audit discovered that the missing money was related to undetected duplicate payments. Phravixay and Phaosoung had been cashing both paper paychecks and receiving direct deposits into their accounts. The newspaper also pointed out the couple is accused of hundreds of instances of illegal credit card use.
The VTDigger explained that preventing theft within a company can be difficult, and that many businesses set themselves up for crime by not implementing proper financial controls. This can stem from anything – a lack of employee training to too much trust for staff members. The source advised that trust should never act as a substitute for real solutions.
One way firms can take control of their finances is by conducting accounts payable audits. By taking action early on, thieves may not only be discouraged, but it’s more likely any misconduct will be quickly discovered.