Preventing embezzlement is among the most important elements of ensuring a company remains in good financial standing. But what really keeps employees who might otherwise dip into business accounts from misappropriating funds?
According to Reuters, the answer might not be the threat of legal action. The source reported that the United States government is currently being pressured by the American Bar Association (ABA) and many federal judges to locking someone up that doesn't impose a threat to safety for the purpose of deterrence," said James Feldman, a Florida defense lawyer and member of an ABA task force rallying for revisions, the news provider reported.
While some businesses may be concerned that a reduction in the legal repercussions for embezzlement and similar crimes will place them at greater risk of suffering at the hands of insiders, this may not be true. In fact, the frequent use of audit solutions can be an even better way to deter misappropriation than the threat of jail time. Employees require the opportunity to steal to consider embezzling, and AP audits can successfully eliminate an opening staff members may look for.