Discovering that money has been stolen from companies' accounts is perhaps one of the most disappointing obstacles that business owners face. However, accounts payable audits and recovery audits can help firms determine how much has been taken and how much they need to recollect.
One business in Memphis, Tennessee, conducted an AP audit after they suspected their bookkeeper had been stealing from their accounts. According to The Commercial Appeal, the owners of Seiler-Nabers Construction Co. discovered that their employee Karen Tripp had embezzled more than $1.5 million from the company over five years. Tripp maintained control over the finances and records for Seiler-Nabers, but she made the decision to abuse her power by writing a total of 184 unauthorized checks from the business to three different accounts under her name. Investigators stated that Tripp covered up the illegal activity by transferring money from other company accounts into the account she was embezzling from, reports the news source.
Tripp has been sentenced to serve four years in prison and she will also be required to pay back the full amount of $1,578,277 that she stole from Seiler-Nabers Construction, writes the Appeal.
During the accounts payable audit, it was revealed that Tripp used the money she had stolen from her employer to pay for a variety of personal items, including a mansion, vacations and several vehicles, reports WMC-TV. She also used the funds to cover the expenses associated with running her own antique shop.
Businesses and organizations in every industry can use accounts payable audits to uncover any illegal activity they suspect might be occurring and manage their financial records and accounts. These audits can reveal many financial discrepancies, including unauthorized duplicate payments, embezzlement and other situations of misappropriation.
Karl Andersson has devoted his career to helping organizations improve their business processes. For 15 years, he has worked with multitudes of Fortune 500+ companies as the CEO of Technology Insight. Before this, he spent 10 years working in the audit and consulting sectors, which included large international projects in both Europe and Asia.
Karl brings a combination of industry expertise and real-world experience. The diversity of his clients has allowed him to understand a variety of industries, and the unique challenges that each of them face.