The Daily times. [volume] (Richmond, Va.) 1886-1889, 1888-09-15
EXPERT ACCOUNTANTS
SAY EMPLOYERS LOSE MCN1Y SIM
FLY THROUGH NEGLIGENCE

bezzlolcIt Is q secret which every bust
ness firm O. corporation in Chicago would
like 20 know There does not pass day
but some peculations are discovered, from
the Young ran who steals few dollars
and is sent 10 Jail 20 the genius who
leaves for Canada with q million in his
pockets Expert accountants say that
employers lose money simply through
their own negligence. and that al chances
for embezzlement can be removed through
the exercise OF a little care.
w. c. Baine SAYS: The business Of an
expert accountant is a new one in the
west, and mas not acquired the dignity of
q profession II not only calls for a
knowledge Of bookkeeping ign one line Of
business. but it also requires a knowledge
Of every business, cOntractual rights, and
the ability TO construe tho terms Of con
tracts But in Chicago whenever an or.
binary bookkcepcr is thrown ont Of
employment, he at once sets himself up
as au expert accountant. OF course such
men fail The keeping Of n set Of books
can be learned in six months as we 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 81 an expert accountant until
he has gone through a course Of study in
the same manner rs a student for Che bar.
H. therefore becomes fitted ID answer
any call that may be madc upon him. and
the business becomes q life business
But look at the list Of accountants ia
ble Chicago directory There are very
few names which appeared I'm last years
directory showing that the business with
many has been but a temporary one While
tic men engaged In 1t were ont of work
in their ordinary vocation, that of keep
ing books. But the business Is bound 20
grow Business Is done in slch o hurry
here that mistakes are very liable to
occur IN the large majority If cases,
whore an expert accountant is called 20
examine O set of books which are out #
balance, it viii be found that there Las
been no thieving. but that carelessrcss
has been the trouble III bolElecrog or
cashier is trusted sufficiently aai Lcs the
handling II money 10 is an easy matter
for him % steal, bat 10 Is as much harder
for him 20 conceal his thcfts 4 very
common way is t0 fasify the items On
the debi, side Of the cash book Tie oor-
rect AMOUNTS arc generally entered on
the ledger account aud Tie merchant
almost invariably looks 80 tie ledger
WHOM be wi hes o. see wlc-loe any are
count has been paid. II Is Dis ovn care
lcssuess that permits cmLez1iemc-t. and
If be has not the ti-e % look after his
own busine De sho.l have aa account
ant 20 over his books three cr four times
year.
Merritt Brooke. who has been in the
business for q number # Yeas. bias bad
the opportunity Of watching the course .
taken by number of cubczz.ers. and the
means used by them o. make their books
apparently balance, 50 that 40 casual .
glance tlcir peculations au.o- De dis .
covered. Tile way [ happened to ca.cr /
Into the business was this. he slid Il +
had been engaged as q bookkccper in Buff T
falo. and was employed o. examine into /
the accounts Of the county treasurer e +.
Eric c01ltv. II was i1-nd that through
q careless system Of keeping accounts tLo
treasurer was short ia his cash $4,000.
This discovery led to an stigat.0n
into the accounts OF the city Cf bl1a.0
from the time when tho charter was
grated The sum of SiJt 900 +
was discovered the accumulation ~
small amounts Of overcharros on spccial
assessments, which the city bad 10
knowledge 10 possessed.
III Is difficult for q man WHO keeps an
upright set Of books 10 steal Aif employ
er5 money without detection When q
cashier Of o bank wants o. steal money
outright. and with such e SUM a. he can
take a. once and leave f0rplrl unknown,
there is no necessity for hin 90 try 70
cover up the theft by false entries III his
books But the dcfaulter who takes money .
from time Go time is forced Co make lis .
books appear balanced. he makes false /
entries which can be discovered easily ly I
an expert accountant. The systematic /
smbezzler simply relics upon 40 cxaIiDa
ton being made In orlcr 20 commit /
systematic robbery he must DO trusted f
aot only with the cash, but also with Tie /
books. Il is then q very easy matter 60 +
enter items or false footing5 in the cash T
book SO that the figures vail appear cor .
rect. Unless the employer goes beneath +
the surface the fraud viii never tie dis
covered
The honest bookkceper would pot feel .
offended or nsulted IL lis books wore ox-
amincd. and if he Is dishonest. the sJ0acf /
his work is looked oTcr tAo better Book F
keepers would be uore careful ard tic /
books would be better KEEP Ac-sAier Ia I
e large establishment .A.-M not be al /
lowed TO have fan ca>g3 o. tie books, F.
and the bookEeepcr should bo the ole 90 F
keep the record Of all tie cashiers receipts /
and expenditures IN th.s way cmbezzle- /
meut is Impossible uulcss the two act in /
collision the accounts of the cashier F.
can then be examined by the b0oSkcepcrs /
records only Few dcf4catious are found .
IN the accounts of railroad corporations, 7
where large sums Of money are handled .
every year This is because Of the system F.
Of auditing accounts Tho agent who .
handles money for the company does not .
know what moment the travelling auditor
may come in and demand an immediate
inspection Of his accounts. Examinations
made in this way ai.o't tho market value
of stock in corporations. II investors
could be satisfied ihat tho condition Of /
the finances of any corporation was OK
actly what it is given out TO be b. Tho
officers they wou!l hayo greater conf I
dence in invostin. end tho market Value
of the stocks wo-!I increase. Chicago