What measures should office employees take to ensure office security?
Why is office security important?
Office security is important because security threats, in particular, theft and embezzlement, do take place in small businesses.
What is embezzlement?
Embezzlement occurs when the company’s property are misappropriated by the employee whom the property is entrusted. In simple terms, this is the act of the employees stealing property from their own company.
What warning signs of embezzlement should employees look out for?
• An increase in overall sales returns could mean that the accounts receivable payments of the company have been concealed.
• If there are unusual bad-debts within the company, this could mean employee fraud has taken place in the company. In addition, if the cash or credit sales has declined or increased slightly from previous period, this could mean that some of the company’s sales are not recorded.
• Bounced checks received by the companies could mean that funds are being taken out from the business’ bank account without authority.
• Shortages of inventory could mean that employee pilferage has taken place within the company.
• A decline in profit and an increase in expenses incurred by the company can mean that cash is withdrawn from the company’s account illegitimately.
• Slow collection of business accounts receivable can be used by employees to hide embezzlement.
Steps to preventing employee embezzlement:
In order to prevent dishonest acts from
2. Misappropriation of assets – where high level personnel utilize illegal schemes to benefit self by the use of cooking financial records, embezzlement, and theft of employee’s retirement accounts.
The California state penal code defines embezzlement as fraudulently appropriating funds or property by those who have been entrusted with it. In basic terms, this is the theft of assets by someone who has been granted access or oversight over the said assets. The most common form of this charge is the misappropriation of funds, according to the Legal Information Institute.
First, the inventory account increased from 35.47% of total assets in 1996 to 58.01% in 1998, which was uncharacteristically large. Second, the cash accounts and marketable securities decreased significantly. Finally, long term debt increased enormously over the three years. These items are major red flags for business operations.
Non-violent and unlawful conduct committed by corporations and individuals including theft or fraud and abounding other violations of trust committed. So, what is embezzlement? Is a kind of property theft it happens when a person steals all your money or property for personal gain.
In general, embezzlement occurs when someone who is entrusted with another’s property fraudulently steals all, or a portion, of those assets. According to the Legal Information Institute, the misappropriation of funds is the most common form of this white collar crime. For example, a person’s financial manager is supposed to take assets out of a client’s account and
The company's Sales to Total Assets have also shown improvement over the last three years. This indicates the company has been able to use its existing assets efficiently to generate greater sales for the company. A review of the company's balance sheets indicates total assets have shrunk over the last three years while the company's sales have improved over the last three years. As an investor, this is a good sign, however, it could mean the company has reached its capacity output level and may need to raise cash to support future growth.
In most of the cases, family members of the owner's company still money from the company or send private information to other companies. The reasons why these people commit fraud to their own family is because they are ambitious and they want all for themselves. Unfortunately, the ambition of this people not only harm the owner of the company, but also the employees of the company. Since these persons don't want to pay for what they did, they blame an innocent person. When the owners of the companies found that someone is committing a fraud in their company they open an investigation to find the responsible. However, the responsibility of the fraud falls to an innocent person. Because the persons that commit the fraud is an intelligent person and somehow finds the way to blame others and wash their hands.
The point of this article is to inform business owners of the dangers of embezzlement, and heists performed by employees inside the business. Some businesses find corruption within itself. The article provides statistics that state embezzlement is common within a business, and the owner must be careful when trusting other employees. The article is proficient, focusing on the importance of fraud prevention programs.
So, what is embezzlement? A property theft that happens when an individual steal, all your money or property for personal gain.
The balance sheet comprehend the T account is equally valuable to examine. There are two sides of the T account report, the left side indicates the debits and right side indicates the credits. According to the 2009 unaudited balance sheet, a wrong amount of $13,797,000 was entered: after a corrected amount entered of $14, 797,000, the numbers reveal a discrepancy of $1,000,000. The operations income was $6,890,000 and the entry $3,110,000, reveling a discrepancy of $2, 540,000. A negative effect will result in the debit side, as wrong account entries on the balance sheet. The organization will overspend, and the resources allocated according to these improper entries, as mistakes in managerial decisions will occur.
The Target Retail Store goal is to make life better for their customers. Target wants to improve the “guest” retail experience. Their intent is to improve customer shopping, and make it more convenient. Target Corporation emphasizes critical thinking and exploration to improve customer experience; and creating a shopping environment to meet the needs o customers. Target wants to become the preferred shopping destination for all customer needs. To achieve this, they have to deliver value, continuous innovation, and an exceptional guest experience by consistently fulfilling their “expect more, pay less” promise.
Account receivables accounts for purchases which consumers have not yet aid for. This takes cares of any losses that the firm might incur due to allowing credit to certain clients. Bad debts are recorded in the income statement and they represent the des which the company doesn’t expect to be paid back. The account
According to the balance sheet Laura & Bob increased accounts receivable by 100,600 by the end of year three. Now this increase could indicate that the company may be short in collecting, and might be struggling to find the cash to pay the bills. So, it would be important for them to go back, and potentially indicate why the company may be short in cash. After indicating why there is an increase in accounts receivable they will be able to take steps from there to stabilize the company.
Support: The Company’s revenues increased considerably (19%). However, the Accounts receivables also increased significantly (38%). Increase in revenues are generally associated with a proportional increase in the allowance for doubtful debts. By not reporting a significant ‘allowable for bad debt accounts’, the company is able to overstate its profits and could be a cause for concern in the long run, if the receivables turn out to be bad.
In the year 2007, there is a drop in financial performance within the company. Earnings have dropped