Detecting Fraud and Embezzlement

It’s never a pleasant thought to consider, but fraud, theft, and embezzlement happen on a regular basis.  In fact, according to a report from the Association of Certified Fraud Examiners (ACFE), “the typical U.S. business loses 7% of its annual revenues to employee fraud.” In many cases, the crime is carried out by employees who’ve worked for years at the same small business.

The team at Broussard Poché, LLP wants to make you aware of dangers and help stop a potential scheme before it gets out of control.

According to ACFE there are a few warning signs that may present themselves, like employees living above their means, excessive financial problems, and obvious control issues.  They also recommend you look-out for:

  • An employee who is always overtime
  • Disappearing petty cash
  • Employee travel with unexplained or extravagant expenses
  • Disappearing office supplies.

Knowing the warning signs is a good place to start, but the best deterrent to this type of crime is for your employees to know that you have safe guards in place.  Here are a few suggestions:

  • Daily deposits
  • Reconcile regularly
  • Spread financial duties among employees
  • Check receipts for expenses

If you suspect fraud, theft or embezzlement, Broussard Poché, LLP can help you pin down the facts.  We offer forensic accounting services and help with fraud and embezzlement.  But it’s important to note that your accountant is not responsible for detecting fraud or embezzlement unless you employ them for those specific purposes.  So, it’s crucial to be clear with your CPA if you suspect a crime.

Any litigation proceeding deserves keen attention to detail.  A financial expert should organize and analyze all data to ensure accuracy.  The process is intimidating but our team can help you navigate through the process and decide what solutions best meet the needs of your case.

It’s also important to set an example of honesty and high standards and let your employees know that you hold them to the same standards you hold yourself.  If they see you making extravagant purchases at your business’ expense, they may be more likely to take advantage of the purse strings.