Business Restructuring Process COVID-19 We are now experiencing the worst global pandemic in 100 years. COVID-19 hit the U.S.A. in Q1 2020 and businesses were forced to either slow down, shut down, or change the process of how they do business. Now is a critical time to understand the business restructuring process. Most businesses, large
Tag: internal controls
While we never aim to scare our clients and readers, we have a huge plethora of war stories about what happens when companies don’t have internal controls. Just in my 18+ years of experience, I’ve compiled all the crazy stories for you today. What Happens When Companies Don’t Have Internal Controls So, what happens when
Unfortunately, companies of all sizes can become victims of fraud. In fact, a study on fraud published by accounting firm KPMG International found “a very large increase in cases involving the exploitation of weak internal controls by fraudsters up from 49 percent in 2007 to 74 percent in 2011.” Thus, internal controls are a first
Separation of Duties Definition Some circles refer to separation of duties as segregation of duties. It refers to a concept that leads to greater internal control within a company. The accounting separation of duties definition is a theory that the job of an employee should provide a reasonable evaluation for the job of another employee. In
Throughout my career, I’ve witnessed theft of office supplies, the use of company property for personal gain, dishonesty on time sheets, and other infractions that cost the company thousands of dollars per year. But, I worked under the naive assumption that the more significant embezzlement of company assets was scarce and overblown by the media.
By now you may have heard of the 31 year old, lower level trader at Société Générale, one of the largest banks in France, who apparently made some unauthorized bad bets on European equity indexes using futures contracts, resulting in a €4.9 billion ($7.2 billion) loss for the company. The trader had managed to fraudulently