If someone were to ask you “How many employees are at your Company?” would you know the answer? If you’re a small-business owner, you may, but if your business has grown rapidly over the last few years, you may not. Whether you know the number or not, the real question is: do you utilize this to your advantage? Something as minuscule as knowing the total number of employees can be a valuable tool in identifying fraud at your Company.
The elusive Search for Ghost Employees is a tactic us auditors have adopted and use quite frequently. A ghost employee is someone on the payroll who doesn't actually work at the company. Through the falsification of personnel or payroll records a fraudster causes paychecks to be generated to a ghost. The fraudster or an accomplice then converts these paychecks.Read More