Early Warning Signals Of Employee Theft – Atlanta Georgia

Failure to properly implement or follow company policies and procedures is almost always a factor in how employees steal. Before you decide if you need an employee theft investigation and to prevent employee theft , internal theft review the following points:

• Refunds/Returns
  – No management approval
  – Only one employee verifying merchandise
  – Not requiring a receipt
  – Management approval after a transaction is completed
  – Not requiring identification
• Cash Theft
  – Management failure to recognize and respond to the early warning signals of internal theft . Contact us if you would like a copy.
  – Management failure to follow up on daily register shortages               – Unrestricted use of one cash drawer by multiple
  associates or failure to use mid-day cash audit
  – No such thing as “borrowing” of cash. Borrowing equals employee theft

– Lack of controls on cashier identification numbers
– Unrestricted “no sales”
– Management failure to track and question “no sales”
– Cash left unsecured and unattended
– Daily bank deposits not made
– Safe left open or left on “day lock”
– Consider removing $20 bills and larger to drop box (also deters robberies and grab & run)

• Merchandise Theft
  – Management failure to recognize and respond to the
  early warning signals of employee theft. Again contact us if you would like a copy.
  – No management control at receiving room or dock doors
  – Management failure to recognize employees giving away merchandise
  –  Associate packages not checked
  – Associates not observed as they arrive at and depart
  from work
  – Failure to notice empty boxes and packages on the
  sales floor
  – Fraudulent discounts

• Voids
  – No management approval
  – Management approval after the transaction is completed
  – Missing or inadequate explanations on documents
  – Cashiers allowed to use supervisor’s register keys/codes

• Office Environments
  – Petty cash left out, unattended or unsecured
  – Not conducting a weekly-unannounced audit of petty cash
  – Not securing company checks and back stock at all times
  – Not auditing the back stock of company checks
  – Not requiring two signatures on a company check
  – Not cross training or switching job functions around periodically (eliminate sacred territories)
  – Not conducting a periodic audit of Account Payables
  Does the vendor really exist?
  Are we over-paying?
  Do orders look reasonable?
  Did we receive what we paid for?
  – Not conducting a periodic audit of Account Receivables. Are all payments accounted for and did they make it to the company’s bank account?Are we overcharging customers? Where is that money going?
  – Are expense reports audited for reasonableness?
  – Do expense reports have printed not handwritten receipts?

Employee theft must be investigated. To not have an employee theft investigation conducted when you suspect employee theft invites more.

Want more information about employee theft or internal theft contact us at employee theft investigation or call 1.770.426.0547 – Atlanta Georgia