Preventing and Detecting Employee Theft and Embezzlement
A Practical Guide
Wiley Professional Advisory Services
1. Edition July 2010
2010. 310 Pages, Hardcover
ISBN 978-0-470-54571-3 - John Wiley & Sons
E-Books are also available on all known E-Book shops.
Small business owners and accounting departments need immediately useful tips for preventing embezzlement from taking hold in their organizations. With practical guidance for detecting embezzlement in every business, this book reveals lessons learned by author Stephen Pedneault in his twenty years of working with small businesses and organizations both in preventing and investigating employee embezzlements. This eye-opening book offers business professionals an insider look at the different ways embezzlement occurs in businesses, and hard-won advice for keeping their businesses from becoming victims of embezzlement and fraud.
From the contents
CHAPTER 1 Hiring the Right Employees.
Where Do You Start?
Advice of Counsel.
Criminal and Civil History Checks.
Hiring the Right Employees: Considerations.
CHAPTER 2 Know Your Employees.
Why Is Knowing Your Employees Important?
What Should You Watch for in Your Employees?
Know Your Employees: Considerations.
CHAPTER 3 Sales, Cash Receipts, and Collections.
Here's Where Everything Starts.
Recording and Tracking Sales.
Debit Memos and Other Adjustments.
Sales, Cash Receipts, and Collections: Considerations.
CHAPTER 4 Credit Card Sales, Transactions, and Merchant Statements.
Processing Refunds or Credits.
Reviewing and Reconciling Refunds or Credits.
Reviewing and Reconciling the Merchant Statement.
Credit Card Sales, Transactions, and Merchant Statements: Considerations.
CHAPTER 5 Purchases, Cash Disbursements, Checks, and Petty Cash.
Unpaid Bills/Accounts Payable.
Purchases, Cash Disbursements, Checks, and Petty Cash: Considerations.
CHAPTER 6 Credit Cards and Debit Cards.
Credit Cards and Debit Cards: Considerations.
CHAPTER 7 Employee Expense Reimbursement.
Where Are the Abuses?
Employee Expense Reimbursement: Considerations.
CHAPTER 8 Electronic Banking.
Traditional Banking (In-Person Deposits and Manual Check Writing).
Check Processing and Clearing Changes.
Changes in Bank Deposits.
What Can You Do?
Electronic Banking: Considerations.
CHAPTER 9 Payroll Processing.
Payroll Administration: Adding/Changing/Terminating.
Payroll Tax Returns.
Payroll Processing: Considerations.
CHAPTER 10 Inventory Issues and Controls.
Prevention: Good News and Bad News.
Retail Businesses: Items Available for Sale.
All Businesses: Items for Use by Employees (Supplies, Tools, and Equipment).
Inventory Issues and Controls: Considerations.
CHAPTER 11 Bank Statements, Canceled Checks, and Reconciliations.
Investment Account Statements.
Bank Statements, Canceled Checks, and Reconciliations: Considerations.
CHAPTER 12 Financial Reports.
Generate Financial Reports Regularly.
Why Is the Regular Review of Financial Reports So Important?
When to Consider Outside Advice and Assistance.
Financial Reports: Considerations.
CHAPTER 13 Safeguarding Your Bookkeeping or Accounting Systems.
Manual Bookkeeping Systems.
Computerized Bookkeeping and Accounting Systems.
Safeguarding Your Bookkeeping or Accounting Systems: Considerations.
CHAPTER 14 Prevention, Detection, and Insurance.
Timing Is Everything.
Adequacy of Coverage.
Responsibilities for a Claim.
Prevention, Detection, and Insurance: Considerations.
CHAPTER 15 Your Response to an Identified or Potential Issue.
A Dreaded Day of Discovery.
Due Diligence on the Discovery.
What If It Appears to Be Fraud?
Your Response to an Identified or Potential Issue: Considerations.
Appendix A: Embezzlement Controls for Business Enterprises.
Appendix B: Who Was Lester Amos Pratt?
About the Author.