Taking a hands-off approach to financial management is often a recipe for disaster. When organizations allow these operations to go unsupervised, they run the risk of encountering costly mistakes and fraud. Ultimately, this could put them in a position that will require the use of a crime.
The news source explained that the women are accused of using the money for numerous purposes, including giving out unauthorized Christmas bonuses, purchasing diet meals and non-school-related vacations. The audit noted that there were few internal controls and monitoring protocols in place to prevent such situations for occurring.
CSO Online explained that one of the major ways internal fraud can be avoided in through better oversight. A simple step that most organizations can take is to get multiple employees involved in various financial processes. With more people checking their work, employees are less likely to feel tempted to steal. By eliminating the opportunity to embezzle through stronger controls and audit solutions, businesses can ensure their financial health.