Preventing and Detecting Employee Theft and Embezzlement: A Practical Guide

Preface . Acknowledgments. Introduction. CHAPTER 1 Hiring the Right Employees. Disclaimer. Where Do You Start? Advice of Counsel. Application Policy. Due Diligence. Personal Information. Past Employment. Education. References. Criminal and Civil History Checks. Credit Checks. Hiring Time. Hiring the Right Employees: Considerations. CHAPTER 2 Know Your Employees. Why Is Knowing Your Employees Important? Open Communications. 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. Collections. Debit Memos and Other Adjustments. Accounts Receivable. Sales, Cash Receipts, and Collections: Considerations. CHAPTER 4 Credit Card Sales, Transactions, and Merchant Statements. Processing Sales. Reconciling Sales. 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. Purchases. Cash Disbursements/Checks. Unpaid Bills/Accounts Payable. Petty Cash. Purchases, Cash Disbursements, Checks, and Petty Cash: Considerations. CHAPTER 6 Credit Cards and Debit Cards. Credit Cards. Debit Cards. Credit Cards and Debit Cards: Considerations. CHAPTER 7 Employee Expense Reimbursement. Expense Submission. Where Are the Abuses? Payment Processing. 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. ATMs. Online Banking. What Can You Do? Electronic Banking: Considerations. CHAPTER 9 Payroll Processing. Payroll Administration: Adding/Changing/Terminating. Payroll Processing. 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). Detection. Inventory Issues and Controls: Considerations. CHAPTER 11 Bank Statements, Canceled Checks, and Reconciliations. Bank Statements. Investment Account Statements. Canceled Checks. Bank Reconciliations. 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. QuickBooks Users. Safeguarding Your Bookkeeping or Accounting Systems: Considerations. CHAPTER 14 Prevention, Detection, and Insurance. Timing Is Everything. Adequacy of Coverage. Responsibilities for a Claim. Disclaimer. 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. Index.