Embezzlement In Th Workplace Employee Theft Is A Major Problem

Embezzlement in the WorkplaceName:Institutional affiliationEmbezzlement in the WorkplaceBusiness owners lose a lot of money, approximately 5% of their annual revenue to embezzlement from dishonest employees according to James Farrell. The speaker suggests various ways of preventing frauds and thefts. He adds that internal controls must be created and enforced in order to detect or prevent theft by employees.Forensic accounting is an important way of preventing embezzlement. This type of accounting analyses the books of accounts, track assets in order to obtain evidence that can be used in court to prosecute the employee. Hiring an expert may help to deter fraud in the business. Employee awareness can also reduce the risk of fraud. The employer must perform background investigation of potential employees before hiring them and determine their credibility. He must also pay close attention to the financial conditions of his employees. Business can also frequently warn their employees on the repercussions of committing fraud, at least on a monthly basis. Finally, he suggests that the business owner must understand his business, through frequent financial analysis and reconcile bank accounts on a regular basis (YouTube, 2015).Segregation of duties is