At best, a hasty job is done to put a financial statement together in order to prepare the annual income tax returns. This situation is typical, and ripe for an unscrupulous or desperate employee to make off with your hard-earned money. Furthermore, financial audits aren't designed to detect all types of employee fraud, despite the popular belief that they will. Some of the methods used by the thieves are so devious that the most highly trained professionals can easily miss them. An employee who works irregular hours or who is reluctant to take vacations.
Expense accounts that are unexplainably inconsistent with prior-year expenses.
Balance sheet accounts that are unexplainably accumulating. Payments made to vendors you are unfamiliar with or checks made to employees that are signed by them. Even if you don't enjoy the financial end of running a business, as a business owner you must stay involved for your own protection. When it comes to your financial health, an ounce of prevention is worth a pound of cure. The person who writes your checks shouldn't be the person who reconciles the bank accounts.