Another case of embezzlement in a company due to lack of segregation of duties. Debra Skies who has been working as the office manager at McCord Engineering, Inc. since the company’s inception in 1985 recently turned herself in for embezzlement. Debra was let go earlier which was unrelated to the theft. The new office manager while looking at the books found accounting discrepancies and reported the same.
It was found that Debra was paying off her personal credit card bill using company funds. She has stolen approximately $217K from the company through the years. How was it possible and why was it not found earlier. As the office manager, Debra was in charge of accounting as well. She did everything under the accounting umbrella, from payroll to bookkeeping to AP. This is a perfect example of the fraud being committed due to lack of segregation of duties. With fewer employees wearing multiple hats, smaller companies are very susceptible to such fraud.
