Embezzlement takes many forms, but one common factor in many of these cases is that it is unexpected. Even when warning signs may be present, executives don’t want to believe such crimes could occur in their organization. However, staving off these incidents is all about being proactive about prevention.
According to Green Industry PRO, auditors and accountants are very familiar with the warning signs that a company may be allowing fraud to occur. One CPA told the source that he often sees three conditions in enterprises that fall victim to embezzlement: the first person reviewing financial statements.
The news provider advised that one simple way to avoid theft is to never give a bookkeeper, accountant or office manager the authorization to sign checks. Additionally, each payment should require two signers.
In order to prevent such issues, the source recommended that the regular – as well as random – use of audit solutions is essential. If employees who handle money know that owners are overseeing financial processes, crimes are less likely to happen.