Avoiding Embezzlement Embarrassment Or Worse

An entity can lose twice in an embezzlement case. Consider these 10 actions to avoid even more revenue loss during the fraud examination and litigation. 

Joe Mancha, an independent CPA, determined that deposits into the bank account of Shelby Building Supply were shorted by $285,000. He wrote a report stating the company's controller, Julie Mays, was responsible for the loss.1 The owner of Shelby Building Supply, Max Aiken, filed a proof of loss with the insurance company and recovered the policy limits of $25,000 - the maximum allowed under the policy. But Max also wanted a "pound of flesh" because he knew Julie had gambled all the money away and he would not be able to collect the loss.