Power: Don’t let embezzlement happen to your — control your cash | SummitDaily.com

Power: Don’t let embezzlement happen to your — control your cash

I read about the recent spate of thefts of cash with some dismay. As CPAs we learn early in school how to control cash and prevent these things from happening. Control over cash is not rocket science. If you google “Control Over Cash” over 143 million articles are available.

How these organizations allowed this to happen is a moot point. How one of the organizations allowed the thief to steal twice is beyond my comprehension.

I think the most important point I need to make is that the management of any business has a duty to educate itself on how to prevent fraud and defalcation from happening. The fact that an audit found one of the thefts is pure luck. Audits are not designed to detect theft, contrary to popular belief. If a business suspects theft, hire a forensic accountant or fraud investigator, not an auditor. Use a CPA to design the accounting system and choose the accounting software. Finally, learn how to read financial statements and accounting records. Like I said before, this isn’t rocket science.

Terrence J Power, CPA


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