David Lewis advises how SMEs can guard against fraud during the recession.
» Register now
The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.
Registration is FREE and allows you to view all content, ask questions, comment and much more.
Or if you are already registered, login here
A most useful piece.
By way of illustration of just one of the points made here, a while ago I dealt with a case of a well-liked and trusted cashier, call her Anne.
She was divorced but had a grown up son who visited her at weekends. Therefore she took her annual leave entitlement entirely in long weekends.
The business balanced cash at the end of each accounting week. In this (well known national) organisation the accounting week ended on a Wednesday.
Anne had never missed a 'balance day' in 8 years. She was one of several cashiers in the branch and the procedure was that each cashier's 'balance' was checked and counter-signed by another cashier. As everyone knew and trusted Anne they signed off her 'balance' sheets without ever checking them.
One Tuesday Anne collapsed at work and was rushed by ambulance to hospital.
Even so, next day she turned in to work to complete her weekly 'balance'.
As it happens a colleague had already 'balanced' for Anne on the Tuesday afternoon, not expecting Anne to return to work so soon. There was a substantial unexplained difference. Initially it was assumed that Anne's ill-health must have led to her making a silly error of some sort which would soon be resolved.
Sadly it transpired that Anne had been stealing cash for years and had covered the thefts by a combination of false entries in the books and some teeming and lading.
She pleaded guilty when the matter came to Crown Court later.
Anne's story illustrates the 'red flag' of an employee who 'never misses', as well as the risks of trusting someone too much and the consequent failure to operate the laid down procedures (which would have prevented the thefts).
www.siftmedia.co.uk - Interactive community publishing
Registered in England & Wales No. 05923499
Terms & conditions |
Privacy and cookies