Fraud in AP -- Don't Leave the Window Open for Thieves

Feature Story

Do Ghost Employees Haunt Your Bottom Line?

Economic downturn increases risk of payroll frauds

by Edward T. Arnold, Director of Vendor Risk Management, APEX Analytix

As President Ronald Reagan famously said,"Trust, but verify." That homespun wisdom holds true now more than ever, as the economic downturn has increased the temptation to commit fraud at many levels -- in companies large and small. Read more ...

Editorial Corner

Hot news: Your latest issue of The Cheat Sheet

John Hiatt

The Cheat Sheet, sponsored by APEX Analytix, focuses on the latest developments in fraud detection and mitigation. Once a quarter, The Cheat Sheet serves as a guide to help you protect your company, better manage your staff and get more done in less time.

In the last issue, we showed you how office supply scams cost U.S. businesses $200 million per year, and why large companies can be easy targets for fraudsters. In this issue's feature story, you'll learn about "ghost employees" and other common payroll frauds -- and why organizations with solid internal controls are vulnerable. Ed Arnold, director of vendor risk management at APEX Analytix, shares tactics that prevent wallet-draining losses.

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Spotlight

ApexAnalytix^® to Host "Top Gun Nashville 2010"

A premier event for Global 1000 Accounts Payable, Shared Services and Procure-to-Pay Leaders.

This year's conference features two learning tracks -- Retail and Commercial.

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Publications

STORES Magazine

Chain Store Age

Supermarket News

Business Finance Magazine

Financial Executive

CFO

Internal Auditor

Accounting Technology

eWeek

Associations

ACFE - Association of Certified Fraud Examiners

IIA - Institute of Internal Auditors

AICPA - American Institute of Certified Public Accountants

IQPC - International Quality and Productivity Center

VCF - Vendor Compliance Federation

IOMA - Institute of Management Association

Resources

The Balance Sheet

The APEX Analytix quarterly publication that provides insights and best practices for A/P, shared services and recovery audit professionals.

See latest issue

Kroll Global Fraud Report

ACFE Report to the Nation

Complimentary Webinar

Continuous Monitoring For Fraud:
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Download this recording of one our most popular Webinars, and you will learn how FirstStrike^®Fraud Detect software provides innovative continuous monitoring to protect our customers against potential fraud.

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Scam Alert

Senior Financial Exec Pockets More than $31 Million
Fallout includes halt in stock trading

A criminal case against Sujata "Sue" Sachdeva, former vice president of finance and secretary of well-known headphone maker Koss Corp., alleges she used more than $4.5 million of the company's money to buy clothing, furs and jewelry at various luxury stores in Milwaukee during the past two years.

Following those initial allegations, Koss has since disclosed that the extent of the fraud may be worse; an internal investigation has uncovered additional unauthorized transactions from as far back as five years ago that total more than $31 million.

Koss plans to restate its financials for the past two years and may go back as far as 2005 to make corrections. Koss's stock spent 21 days in limbo after Nasdaq halted its trading toward the end of December 2009. And at least one law firm has opened an investigation for a possible shareholder lawsuit.

Now there's a battle over internal controls: Koss fired its accounting firm, Grant Thornton. The auditor countered that Koss is not subject to Sarbanes-Oxley Section 404(b), which requires an auditor sign-off of internal controls, and that management and the board are responsible for maintaining effective internal control.

Risk Management : Guard against devastating financial losses

High Financial Risk in Hoarding Data
Is it time for a data intervention?
by Ted DeZabala - Risk Management

Mobile Payments Pose Fraud Threat
Fraudsters targeting mobile phone apps
by Karen Epper Hoffman - Banking Strategies

Process Management : Implement new processes & manage you staff

Fraud in AP -- Don't Leave the Window Open for Thieves
12 "red flags" that point to fraudulent transactions
from Accounts Payable News

Changes Coming to Wire Transfers
Look for a new remittance format this fall
by Karen Kroll - BigFatFinanceBlog.com

Time Management : Balance your work and life

The Art of Motivating Employees
A five-minute interaction pays big dividends
from Knowledge@Wharton

Five Ways Improved Focus Boosts Productivity
Get "in the flow" to get more done in less time
from Mind Tools

Issue 3

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