Prevent Embezzlement?—Yes You Can!
Embezzlement is happening in every type of organization imaginable. No type of business—large or small—is immune from this devastating crime. Even as you read this, an embezzler may be ripping off your organization. But, how would you know? That is the question—is it not?
The good news is that you can control if not prevent embezzlement. That’s right! You can control and prevent embezzlement within your very own organization—far better than in the past. After four decades of active research into why and how business crimes are committed, I am going to explain that by following a few simple—but critical steps—you can prevent embezzlement in your organization.
- Step one to prevent embezzlement requires that every manager must recognize the possibility that an act of embezzlement could occur within his/her operation.
- Step two of the prevent embezzlement strategy begins at the point of hire. Reduce your risk to embezzlement and internal fraud by conducting comprehensive background and credit checks.
- Step three, managers cannot prevent embezzlement if they fail to know where their operation’s greatest risks and vulnerabilities are—or if they fail to attain sufficient knowledge to create and implement a realistic action plan to prevent embezzlement.
- Step four of the prevent embezzlement strategy revolves around the separation of duties. No single employee should have the ability to affect every stage of a critical work process. For example, the employee who handles accounts payable should not open incoming mail or be responsible for accounts receivable.
- Step five, if the prevent embezzlement strategy is to be truly effective, proper supervisory oversight and monitoring are key elements in helping to ensure that adequate internal controls are in place and enforced.
While the above five steps are important in helping to prevent embezzlement, find out other ways to prevent embezzlement; buy your copy of Business Fraud: From Trust to Betrayal now!