No Review Process = Embezzlement

PROBLEM

Max is a nice guy. He loves what he does, and works hard at his company.

He thought it would make life easier to give his bookkeeper signature authority on his business account. And, it did make life easier until he was contacted by the Police.

The police called him because they found canceled checks in a car involved in a crime. The checks were written on his business account made out to “cash”.

Turns out, it was the bookkeeper’s boyfriend’s car. After some research, Max found out she had embezzled almost $12,000 from his company.

When she started working for Max, she rode the bus. After working for Max for a while, she had purchased a car, and started getting her nails done.

Max was so busy working in his business, he didn’t notice.

LESSON

Don’t give signature authority to the person printing checks, and have a review procedure in place to prevent unauthorized payments.

THANKS TO:

Mindy Morrison
Glendale, CA
www.backofficepeople.net

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