Here is a post by Charles Hall.

http://cpa-scribo.com/25-ways-fraud-occurs/

 

To prevent fraud, we must know how it happens.

Common Frauds

Here’s a list of common company thefts:

  1. Collection clerk steals cash prior to recording it
  2. Collection clerk steals cash after recording a customer receipt; he voids the receipt and adjusts (writes down) the customer’s account
  3. Collection clerk places a personal check (for $5,000) in the cash drawer and takes an equivalent amount of cash; the clerk leaves the check in the drawer for months—in effect the clerk has an unauthorized loan
  4. The cash collections supervisor steals cash after receiving funds from collection clerks but before the money is deposited; she adjusts the related bank reconciliation by the amount stolen
  5. The person opening the mail steals checks before they are receipted; these amounts had not previously been recorded as a receivable
  6. Employees steal capital assets (knowing that no one performs periodic inventories)
  7. Employees use company credit cards for personal purchases but code the transactions as company expenses
  8. Accounts payable clerks cut checks to themselves (or to an accomplice) but record the check as company expenses; the check signatures are forged
  9. Accounts payable clerks establish fictitious vendors using their own addresses, a P.O. Box, or that of an accomplice; payments are made to the fictitious vendor and covered up with fictitious invoices; the checks are signed electronically as they are printed
  10. Accounts payable employee intentionally double-pays an invoice, then requests that the vendor refund the extra payment (with the refund going directly to the payable clerk)—check is converted to personal use
  11. Payroll personnel increase the pay rate—in the master pay rate file—for themselves or for friends working in the company
  12. Payroll personnel pay themselves (or friends) twice for each payroll
  13. Payroll personnel purposefully overpay withholding taxes and inflate the withholding amount on their own W-2, resulting a tax refund that includes the excess payments
  14. Purchasing department personnel are bribed by a vendor; the vendor recoups the bribe costs by inflating its subsequent invoices
  15. State, city, county elected officials are bribed; the vendor recoups the bribe costs by inflating its subsequent invoices
  16. Vendors give favors (e.g., free vacations) to those with the power to buy—commonly called a gratuity; vendor recoups the cost of the favors by inflating its subsequent invoices
  17. CEO orders accounts payable staff to make payments to himself (with an implied threat); payments are coded in a manner that hides the payment
  18. Money is wired by the CFO to the CFO but is recorded as a legitimate expense using a journal entry
  19. Money is wired to the CFO who then leaves the country without trying to cover up the theft
  20. The CEO or CFO makes payments to someone who is threatening their life or is blackmailing them; the expense is coded as legitimate
  21. A secret bank account is opened in the name of the business by the CFO but the sole authorized check signer is the CFO; checks are made from a legitimate business bank account to the secret bank account; the CFO writes checks to himself from the secret account
  22. A sales person steals rebate checks that belong to the company; she deposits the checks into her personal bank account by writing “pay to the order of…” on the back of the check
  23. The payables clerk writes a manual check to himself and then records the check with a journal entry that reflects a legitimate vendor
  24. The CFO inflates revenue at year-end with fictitious journal entries; stock prices go up; the CFO sells personally-owned company stock, then the CFO reverses the year-end accruals
  25. The inventory clerk steals stock and covers the theft by altering the inventory records

Fraud Brainstorming for Auditors

In performing your fraud brainstorming, consider printing out this list and seeing if any of these thefts are relevant to your audit.

http://www.inc.com/adam-fridman/5-signs-blogs-are-evolving-into-media-hubs.html?cid=+sf01003&sr_share=linkedin

Take these steps to help prevent fraud in your business

 

How can you prevent employee fraud in your business? Here are four suggestions.

 

  • Screen job applicants. Check work references, criminal records, and professional recommendations. By instituting a screening policy, you may save a lot of cash and grief. Just remember to treat every applicant equally, and get written permission for background checks.

 

  • Reconcile bank accounts. A standard and simple internal control is to separate employees who pay bills and make deposits from those who reconcile accounts. As an owner, making time to personally review deposits and disbursements on a regular basis can deter fraudulent billing or cash skimming schemes.

 

  • Secure inventory and supplies. This can be as simple as regularly changing combinations on warehouse doors or locking supply cabinets. Laptop computers are especially vulnerable to theft, so make a priority of securing them.

 

  • Get a cash control review. Having a trained set of eyes inspect your books, records, and operations can pay for itself many times over. Skilled auditors can ferret out scams and help your business develop stronger controls against criminals, both inside and out.

 

If you'd like assistance with this or any of your business concerns, give us a call at 203-468-8133.

Did hear the news that Microsoft will soon be ending is offer to allow free upgrades for older versions of its Windows Operating System to Windows 10? The deadline to download and install the free upgrade is July 29th, 2016. To read more about it please follow this link: https://blogs.windows.com/windowsexperience/2016/05/05/windows-10-now-on-300-million-active-devices-free-upgrade-offer-to-end-soon/

 

Its very important that you first check with your Veterinary software provider before installing the Windows 10 upgrade. The most progressive Veterinary software providers have already ensured that the most recent versions of their software is compatible with Windows 10, however is still vitally important that you call their technical support lines to double check that you are running the latest version of their software, and that any other associated programs you have installed are also Windows 10 compatible.

 

Once you have verified that your veterinary software is Windows 10 compatible you can purchase any new or replacement computers for your practice with Windows 10 preinstalled installed and save yourself a round of operating system upgrades in the future.

An article from CPA Practice Advisor on Stock vs. Asset Sale as a parameter to business valuation engagements.
http://www.cpapracticeadvisor.com/news/12188993/add-stock-vs-asset-sale-...

To learn more about Burzenski & Company Veterinary Financial Advisors practice valuation & transition services click here: http://veterinaryfinancialadvisors.com/content/practice-valuation-transi...

Learn more about how some veterinarians are changing their office space and professional image to reduce pet and owner stress about coming to the office. Let us know what you think about this growing trend and if you’re planning on getting certified as a fear-free clinic.

http://bigstory.ap.org/article/3f8130450d6440c797db54cbca51dcdb/fear-fre...

Like us on Facebook to stay up to date on growing and building your veterinary practice.

http://www.foxbusiness.com/investing/2015/12/11/why-stocks-need-to-be-part-your-portfolio-in-2016/?intcmp=marketfeatures

 

Consider all of the implications of investments in stocks before including in your portfolio. Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and should be read carefully before investing.

Burzenski & Company is not a licensed investment advisor.

Past performance does not guarantee future results. Please contact us at 203-468-8133 for a referral to our affiliated licensed investment advisor.

How Do I Know When it's Time to Say Goodbye to a Pet?

 

https://www.linkedin.com/pulse/how-do-i-know-when-its-time-say-goodbye-dr-tiffany-margolin?trk=prof-post 

 

 

A LinkedIn artcile written by: 

Speaker, Author, Clinician, Holistic Healing and Nutrition Expert for Pets and their People

 

 

http://quickbooks.intuit.com/r/technology-and-security/what-is-emv-and-why-do-i-need-it

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