It's only natural for employers to want to trust their staff members. This faith can be given for a number of reasons, from genuine friendship to the desire to make one's job easier. By granting workers a large amount of power over finance operations, business owners may be able to focus their attention on other projects or simply enjoy more time off. But without maintaining a level of monitoring by regularly using audit solutions, arrangements like this may backfire, placing executives in the red.
According to The St. Augustine Record, the former bookkeeper for Celico Auto Shop, Angela Wray, has been convicted of embezzlement. The Florida woman now faces up to 30 years in prison for the $58,000 she stole from the business' accounts. She will be sentenced later this month.
While Wray was working at his company, owner Carlo Celico gave her a key privilege, Flagler Live reported – the use of a rubber stamp of his name to authorize checks and accept payments. This may have made it more difficult to detect fraudulent transactions.
"He trusted her," prosecutor Jennifer Dunton told the jury. "This trust he placed in Miss Wray was a grave mistake."
During her tenure with the business, Wray made duplicate payments to herself and wrote a number of other checks to deposit into her own account, which she disguised by altering the books to reflect payments to vendors.
Celico accepted some blame in the situation, the source pointed out, when he admitted to the court that he had not engaged in active monitoring of Wray's work. He also neglected to check the enterprise's financial records on a regular basis. Because of this, the money slipped away over the course of three years.
Companies should implement accounts payable audit solutions on a regular basis. By periodically conducting investigations, organizations may be able to discourage employees from committing embezzlement, as well as catch incidents before they take a significant monetary toll.