This lady to the right is Martha Jean. She was probably well-liked at work. She probably went out of her way to make sure others felt like she was a competent, dependable co-worker.
She didn’t want to raise any flags at the awning manufacturer that employed her, because the Santa Ana Police Department’s Economic Crimes Detectives just audited her employer’s books and determined that she stole $352.997.33 from them over four years. She’s currently charged with 109 counts of forgery. One hundred and nine!
The Importance of Trust
Businesses are built on trust. We trust our employees to do their jobs honestly and ethically. However, even the most trustworthy people can make mistakes or be tempted by opportunity. Internal controls are not a sign of distrust; they are simply a way of mitigating risk.
The Benefits of Internal Controls
In addition to deterring and detecting fraud, internal controls can also have a number of other benefits for businesses, such as:
Improved financial accuracy
Enhanced efficiency
Reduced costs
Increased compliance with regulations
Improved decision-making
The Cost of Internal Controls
Implementing and maintaining internal controls can be time-consuming and costly. However, the cost of internal controls is typically far outweighed by the benefits. In the case of Martha Jean, the cost of implementing internal controls would have been a small price to pay compared to the $350,000 she embezzled.
Conclusion
Internal controls are an essential part of any business. By deterring and detecting fraud, and by providing a number of other benefits, internal controls can help businesses to protect their assets and improve their bottom line.
If you do not have internal controls in place, now is the time to start. There are a number of resources available to help you develop and implement internal controls that are right for your business. By taking the time to implement internal controls, you can help to protect your business from fraud and improve its profitability.
To learn how WingSwept can help your company improve its processes through better use of technology, call us at 919-779-0954 or email us at Team_WingSwept@WingSwept.com.