After leaving one of my corporate jobs the person that they replaced me with ending up embezzling the company for $113,000. The individual did not have an accounting background or formal education and was hired as an office manager. The problem was – the controller (auditor) had left the company and the company did not replace me at the same level of accounting experience. Also, the boss didn’t have time to audit the books. Even in Louisville, there have been accountants indicted for embezzlement which is why it is not surprising that most business owners do not even have a clue where they stand financially. In fact, The Association of Certified Fraud Examiners estimates that in the U.S. alone, occupational fraud has cost employers $400 billion through larceny of cash, skimming and fraudulent disbursements.
Sometimes it’s not the bookkeeper or accountant who is guilty of embezzlement, but a partner in the business, an administrative assistant, a receptionist or anyone who is involved in cash handling. In many cases, it was an employee who had been trusted for years.
If you do not have an in-house controller you may want to consider an outsourced controller to oversee your accounting staff.