March 05, 2018 Articles

So You’ve Discovered a Case of Employee Fraud: Six Steps to Take Immediately

Two forensic accountants share advice they give to business owners who suspect fraud.

By Teddy Brown and Nicole Ponziani

A metal fabricating company that supplies the automotive manufacturing industry receives a call from a vendor: “You’re past due on your invoice with us. Please pay immediately or we will have to freeze your account.” You quickly check your online accounting system, and it shows that the invoice has been paid. You then check your banking records, and the corresponding check number has cleared. As you’re trying to determine what you’ve missed, you notice Pat, one of your accounts payable clerks, pulling into the parking lot in a brand-new Mercedes. Red flags go up. Could it be employee fraud?

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