Discovering and Thinking are More Alike than You May Know :
Discovering and Thinking are More Alike than You May Know Be Careful of Accusing (even when you know you’re right)
Consider anyone who touches the money (even your daughter-in-law)
Get proof before you call the police
Methods of Embezzlement :
Methods of Embezzlement Cash is taken for payment and then not marked on the books
Petty cash is constantly missing
Checks written to the practice are redirected and deposited elsewhere
Services for friends and family are written off
Internal financing payments are diverted
Internal Investigation :
Internal Investigation Investigate with as much secrecy as possible
Consider using an outside forensic accountant
Take your time
Avoid accusations
Once the Money is Missing :
Once the Money is Missing Suspend the employee(s) pending further investigation
Give the suspended employee(s) a chance to explain what you’ve found so far (do in front of a witness)
Watch for employees who are willing to throw others under the bus
Consider it often takes a ‘village’ to cover up a complex embezzlement
Chance to Explain :
Chance to Explain Inform the employee that as the investigation progresses, the authorities may be called in
“Now is the best time to say anything that might
help us understand what is going on.”
Avoid negotiating for information in exchange for keeping the authorities out of the picture
Keep confidentiality
The Power of the Handbook :
The Power of the Handbook A written policy that allows you to fire any employee who won’t cooperate is powerful!
Once the investigation is complete, the police can make the accusation instead of you.
Embezzle :
Embezzle