Every business must develop a system to protect its assets from the dishonest actions of its employees. Listed below are several tips that have been developed to help firms establish internal controls to reduce the possibility of loss. Remember, each business is unique and there are no universal controls that will work for everyone. Use these ideas as tools to establish your own unique controls and safeguards.
Why Employees Steal
Employees may be tempted to steal if they have extensive gambling debts, extravagant living standards, unusual family expenses, or are experiencing substance abuse.
Employee Theft Warning Signs
- Unexplained fluctuations in inventory - Employees who ask for excessive overtime or refuse to take vacation time - Workers who are good at math and make few, if any, mistakes - Employees who are always looking into someone else’s job - Customer or other employees’ complaints
Suggestions for Internal Loss Prevention Controls