Every small business owner should read Preventing and Detecting Employee Theft and Embezzlement: A Practical Guide”. This is written by Stephen Pedneault, CPA/CFF, CFE, founder and Principal of Forensic Accounting Services, LLC, located in Glastonbury, CT.
Steve is the author of two other books, Fraud 101: Techniques and Strategies for Understanding Fraud and Anatomy of a Fraud Investigation. Steve has over twenty years of experience in forensic accounting, employee fraud, and litigation support matters. (Full Disclosure—the author is a client of our firm.)
Why does a small business owner need to be concerned with fraud? According to the Association of Certified Fraud Examiners:
- The typical organization loses 5% of its gross revenue to fraud. This would equate to about $2.9 Trillion (with a T) annually.
- Almost 25% of the frauds in this study had losses of at least $1 million.
- The median fraud went on for 18 months before being detected.
- Fraud perpetrators display warning signs such as living beyond their means and experiencing financial difficulties.
Employee fraud may be prevented. Reading and implementing this book will benefit any small business owner in this mission. The author does a great job of providing practical advice for all aspects of employee fraud—from hiring to payroll matters.
The case studies in each chapter are very helpful and the control programs and checklists are an invaluable tool any small business owner could put to use immediately.
ACTION ITEM: Buy, read, and implement this book. It will help you prevent employee fraud.
Thomas F. Scanlon, CPA, CFP®
