In the Journal of Accountancy, I found this short, yet very informative quiz (link below) provided by Andi McNeal, the director of research for the ACFE. It is extremely helpful for individuals unaware of the issues that they might experience in their businesses.
As a CPA, who specializes in forensic accounting, I have found that most embezzlements are performed by the “trusted” employee, who had free access to the company bank accounts. Very often, we see the “trusted” employee paying for his/her personal expenses, such as: personal utility bills, mortgage payments, clothing, extravagant trips, and restaurants charges.
Unfortunately, employers usually ignore the “red flags” that would have helped them discovered the fraud or, at the very minimum, question the perpetrator about the suspicious transactions. This lack of financial supervision and monitoring by business owners allows the perpetrator to continue the embezzlement for months and, in many cases, years.
See Article: What’s Your Fraud IQ?
Veronica Larriva, CPA
YCPA Committee Member