Segregation of Duties. What is that?

When one person controls multiple phases of accounting transactions (i.e. accounts payable, payroll, accounts receivable, etc.), the opportunity for fraud in the workplace significantly increases.

By involving at least one other person in the transaction, the risk of fraud can be greatly reduced. According to the Association of Certified Fraud Examiner’s Report to the Nation, the presence of anti-fraud controls such as segregation of duties are associated with reduced fraud losses.

Accounting processes are divided into three separate phases:

  1. Authorization (requires an employee to direct another employee to initiate a transaction)
  2. Custody (the actual possession of the asset)
  3. Recording (adjusting accounts to reflect the transaction within the accounting records)

The “ARC” duties should be se segregated so an employee doesn’t have responsibility for more than one phase (authorization, custody and/or recording) within an accounting process.

Resume “Padding”

Resume padding is more common than you might think. So what is it?

Presenting false or misleading information about one’s education, work experience, credentials, job skills, or other important personal and/or professional data.

The following statistics come from a national survey conducted by CareerBuilder in 2015 among 2,532 hiring and human resource managers. More than half of employers (56%) have caught a lie on a resume. The most common areas around which job seekers lie are as follows:

Embellished Skill Sets – 62%

Embellished Responsibilities – 54%

Dates of Employment – 39%

Job Titles – 31%

Education – 28%

resume

This should be a point of concern for any company motivating you start background checks on your job applicants. This will not only protect your business from risk, but save you money.

http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?sd=8/13/2015&id=pr909&ed=12/31/2015