Businesses may go through financial challenges for many different reasons. In some cases, a downturn in sales could be to blame for budgetary woes. Other times, increased operating expenses may force a company to look at its finances closely. A proposed merger or acquisition could lead to an internal audit, as could a pending lawsuit by another business.
During internal audits, information can come to light that can have major implications for employees. If there are questions about financial records, certain workers may face intense scrutiny. In some cases, company audits may ultimately result in embezzlement charges against certain professionals.
Auditors look for discrepancies and trends
Internal audits serve several purposes. They help reconcile financial records and validate the state of the company. They can identify areas in which the company could improve to increase profitability. They can also identify sources of loss, including indicators of embezzlement.
Auditors may look closely at expense and reimbursement records, as well as client invoices. Any unusual trends, especially those connected to one specific employee, could lead to a more thorough review. When there are signs of an employee diverting funds from the company, exaggerating their expenses or misusing the company expense account, the workers implicated by the internal audit could be at risk of job loss or even criminal prosecution.
Embezzlement charges could lead to jail time, a criminal record and even an order of restitution for the worker accused. Times of fiscal uncertainty at organizations often prompt leadership to respond aggressively to perceived misconduct.
Workers concerned about allegations of embezzlement or other financial crimes may need help responding to employer claims or criminal charges. With the right support, professionals accused of embezzlement can potentially avoid career setbacks and financial penalties.