Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1888-09-14
EXPERT ACCOUNTANTS
SAY EMPLOYERS LOSE MONEY SIM.
PLY THROUGH NEGLIGENCE

All Opportunities for Embezzlement Gao
Be Removed Through the Exercise of q
Little Care-Results of Careless System
of Keeping Accounts.
How to keep trusted clerks from en-
beZzlement is a secret which every bust
ness firm or corporation In Chicago would
like to know. There does not pass day
but some populations are discovered, from
the young man who steals a few dollars
and is sent to Jail to the genius who
leaves for Canada with a million in his
pockets. Expert accountants say that
employers lose money simply through
their own negligence, and that all chances
for embeZzlement can be removed through
the exercise Of little care.
w. c. Baine says: THE business of an
expert accountant is new one in the
west, and has not acquired the dignity of
a profession. 1t not only calls for
knowledge of bookkeeping in one line of
business, but it also requires knowledge
OF every business, contractual rights, and
the ability to construe the terms of con-
tracts. But in Chicago whenever an or
binary bookkeeper is thrown out of
employment, he at once. sets himself up
as an expert accountant OF course such
men fail The keeping of set of books
can be learned in six months as well as In
six years, and the bookkeeper does not
realize that this is the smallest part of
the knowledge which an expert account
ant should acquire before he can succeed.
In Great Britain man cannot arrive to
the dignity of an expert accountant until
he has gone through a course of study in
the same manner as student for the bar.
He therefore becomes fitted to answer
any call that may be made upon him, and
the business becomes life business
But look at the list of accountants in
the Chicago directory. There are very
few names which appeared in last years
directory, showing that the business with
many has been but temporary one while
the men engaged in it were out of work
in their ordinary vocation, that of keep
ing books. But the business is bound to
grow. Business is done in such a hurry
here that mistakes are very liable to
occur. In the large majority of cases,
where an expert accountant is called to
examine set Of books which are out of
balance, it viii be found that there has
been no thieving, but that carelessness
has been the trouble If a bookkeeper or
cashier is trusted sufficiently and has the
handling Of money it is an easy matter
for him to steal, but it is as much harder
for him to conceal his thefts. 4 very
common way is to falsify the items on
the debit side Of the cash book The cor
rect amounts are generally entered on
the ledger account, and the merchant
almost Invariably looks at the ledger
when ne wishes to see whether any ac-
count has been paid. It is his own care
lcssness that permits embezzlement, and
If he has not the time to look after his
own business he should have an account
ant go over his books three or four times
q year"
Merritt Brooks, who has been in the
business for number of years, has had
the opportunity of watching the course
taken by q number of embezZlers, and the
means used by them to make their books
balance, SO that at casual
glance their populations cannot be dis
covered. The way 1 happened to enter
into the business was this, he said; Il
had been engaged as a bookkeeper in Buff
falo, and was employed to examine into
the accounts Of the county treasurer Of
Erie county. 1t was found that through
q careless system of keeping accounts the
treasurer was short In his cash $4,000
This discovery led to an investigation
into the accounts Of the city Of Buffalo
from the time when the charter was
originally granted The sum of $154, 600
was discovered, the accumulation of
small amounts of overcharges OF special
which the city had no
knowledge il possessed.
1t is difficult for man who keeps en-
upright set OF books to steal his employ
ers money without detection. When q
cashier Of bank wants to steal money |
outright, and with such a sum as he can |
take at once and leave for parts unknown, |
there is no necessity for him TO try TO !
cover up the theft by false entries In his |
books. But the defaulter who takes meney /
from time to time Is forced to make his !
books appear balanced. He makes falls, /
entries which can be discovered easily by /
IN expert accountant. The systematic /
ambezler simply relies upon no exanlina-
ton being made. In order to commit /
systematic robbery he must Be trusted /
not Only with the cash. but also With the |
books. It is then very easy matter to i
enter items or false footings IN the cash I
book so that the figures viii appear cor
rect- Unless the employer SotS oene3tn
the surface the fraud viii never be dis
covered.
The honest bookkeeper vouidssnot feel
offended or insuited if his books were eI-
and if he is dishonest, the sooner
his work is locked over the better. Book
keepers would be moro careful and the
books would be better kept cashier II
, large establishment should not De al
owed to have full charge Of the books,
md the beokkeeYer should be tho orc 70
Keep the record Of all the cashier receipts
.nd expenditures In this way eaobezzle-
nent Is impossible unless enc two Get IN
,ollusion- The accounts cf TIE cashier
an then be examined BIZ the bookkeepers |
,ecords Only. Few d.fsl1t:oas sre found
Z the accounts Of -cfi-oed corporations,
where large sans Of money are handed
every year This is because Of the system
If auditing accounts Tie agent wLo
andes neney for the company does lot
Know what moment the travelling ancitor
nay coae IN and demand 81 immediate
nsceciioa OF his aooounfa- Nominations