-> Accused of Defrauding Church: National Post, Feb. 4, 2010 Bookkeeper allegedly defrauded over $91,000 by using church money to pay personal expenses and funneling money into companies she owned.
->Three Year Sentence for Embezzlement: Vancouver Sun, Feb. 8, 2010 A bookkeeper bilked $1,000,000 over several years by writing false supplier cheques to herself. Owner did not ask to see supporting invoices. The theft crippled the company.
->Woman Admits to Fraud at Daycare: Toronto Star, Apr. 22, 2009 A woman misappropriated $100,0000 from an Oakville daycare by forging cheques and stealing payments made by parents.
->Pleads Not Guilty to $500,000 Fraud: Edmonton Journal, Nov. 10, 2009 Bookkeeper accused of defrauding employer by using a credit card machine to create refunds that were credited to her personal account.
->Bookkeeper Sentenced for Stealing from Nuns: Waterloo Record, Dec. 2, 2009 The bookkeeper was motivated by the desire to live ‘like a rock star’ at the expense of sixty-seven retired nuns. A good chunk of money paid for a $500,000 home.
->Woman Stole from Clients to Pay for Crack: Guelph Mercury, Sept. 17, 2008 Condominium corporations lose $400,000. Woman was slave to crack cocaine.
->Scamming Daycares Gets Man Three Years: Waterloo Record, Nov. 14, 2008 A disgraced bookkeeper bilked Toronto daycare centres out of $800,000.
->Hospital Worker Charged With Fraud: Toronto Star, Nov. 21, 2008 Toronto hospital employee forged signatures and defrauded $558,000 over two years.
->Farm’s Bookkeeper Charged in Fraud: Toronto Star, Feb. 22, 2007 Toronto horseracing track is missing $523,000. Long-term trusted employee charged.
->Judge Jails Charity Thief: Chronicle-Herald, Mar. 8, 2007 A former bookkeeper who stole more than $400,000 from a charity that supports needy First Nations people in Nova Scotia was sentenced to ninety days in jail.
->Bookkeeper Stole $200,000, Police Allege: Kitchener Record, Nov. 2, 2007 The woman allegedly stole cash by writing up false invoices from suppliers and then producing cheques for those invoices payable to herself.
FRAUD: A SIGNIFICANT AND GROWING THREAT
According to the PricewaterhouseCoopers Investigations and Forensic Services Global Economic Crime Survey 2005, over half (55%) of the Canadian Companies surveyed reported being a victim of economic crime, a 9 percentage point increase from 2003.
The occurrence of fraud can significantly impact a company’s reputation, brand equity, business relationships and staff morale, sometimes to a greater extent than the financial loss itself.
Asset misappropriation, financial statement misrepresentation and false pretences where perceived to accounted for 72 percent of all fraud in Canada. More than 60% of Canadian companies surveyed reported that the perpetrators of fraud were from their own staff. These fraudsters have a strong understanding of the business and the strength and weaknesses of internal controls. The top three reasons for committing these frauds were collaboration with external parties-45%, insufficient internal controls-44%; management override-40%.
The internal audit function is the most successful control in detecting economic crimes. Early analysis of company accounts are necessary to the detection of unusual and suspicious transactions. Preventing, detecting, investigating and prosecuting fraud is a constant battle. To prevent fraud from flourishing, your company must develop a good system of internal controls, communicate your company’s fraud policy, encourage and protect whistleblowers, promote a culture of honesty and openness and create a positive work environment.
From the above statistics, it becomes apparent that all companies are now demanding the services of well qualified bookkeepers in order to meet public expectations and ensure adherence to accounting regulations.
Unfortunately, the bookkeeping profession is not regulated by government; therefore, anyone can claim they are a bookkeeper, even though they have not had any formal education or training, It is very difficult for a business owner to determine whether a person has the ability to provide bookkeeping services in a competent and professional manner.
Small business owners now have the opportunity to significantly reduce the possibility of fraud in their organizations. They can hire a CB. Certified Bookkeepers are members of CIB, the Canadian Institute of Bookkeeping, a national non-profit organization dedicated to establishing educational, professional and ethical standards in the bookkeeping profession.
