RABCPA PC Blog
Archive: 2012
In the 21st century the most important asset of any company is its human capital or what’s better known as employees.
Having motivated hard-working honest employees is what separates great companies from all the rest.
Not sure if you ever have worked in one of the retail stores at the local mall. But if you did you notice something very curious; the companies seem overly concerned about employee theft. When employees show up for work they required to in most leaves and other close items in a separate location, they are restricted as to how they can access inventory, gift cards and the cash register.
The reason for this is that these retail franchises realize that the people most likely to steal from them are their own employees.
Unfortunately, one little known fact is that every year over $50 billion is stolen by employees, in fact 75% of employees have stolen at least once from their employer. This is based on studies by the Association of Certified Fraud Examiners ACFE
The US Chamber of Commerce has indicated that employee theft was a main factor in 33% of all US bankruptcies.
Who are the employees that are responsible for the theft, 59% are men. 34% have at least a bachelor’s degree.
Why do employees steal?
Two widely used fraud assessment tools that explain this are The Fraud Triangle, opportunity perceive pressure and rationalization and the other is M.I.C.I which stands for money ideology, coercion, ego
How to prevent employee fraud:
Good hiring procedures is the first line of defense
Have a detailed employment application prepared
Do a thorough check of employee’s applications including calling previous employers perform a credit check
Make a copy of the import port and documents from the employee such as driver’s licenses and other information.
Remember the formula employee theft probability = perceived risk of detection plus expected penalties
Important to set up an anomalous tip lines and suggestion boxes
Have a positive work environment have a clean desk policy
Focus on the small stuff
Posted August 16, 2019 by Robert A Bonavito in Forensic Accounting
Understanding accounting, understanding T -Accounts and debits and credits, understanding deferred income and expenses, father of accounting, Luca Pacioli, how to learn accounting in 10 minutes or less. History of accounting, the language of business accounting, Posted June 18, 2019 by Robert A Boanvito in Educational Videos
When performing forensic evaluations and preparing business valuations it is important to have a good understanding of what the current economic conditions are telling you about the future. The best and most accurate methodology to predict the future economy especially in the United States is by using the 2 and 10 year yield curve analysis. Posted May 17, 2019 by Robert A Bonavito in Educational Videos
