Payroll Fraud

Payroll fraud is real. 

According to the Association of Certified Fraud Examiners, it's the number one source of accounting fraud and employee theft.  Payroll fraud occurs nearly twice as often (14.2%) in small organizations with less than 100 employees than in large ones (7.6%).  Although this kind of fraud is widespread, it tends to be overlooked by businesses. These kinds of schemes not only cause financial loss, but also can cause serious damage to the reputation of the organization in the marketplace.  

Payroll related risks can manifest themselves in various ways:
• “Ghost” employees on the payroll and direct deposits made to accounts not associated with any current employee.     
• Non-segregation of duties of key positions that have control over the payroll process. ·    
• Alteration of HR records by employees to increase pay, benefits, vacation pay, etc.·      
• Collusion among employees and even vendors to affect transactions that benefit certain employees in key positions.  

Our experienced accounting and auditing professionals at TCG understand the nuances of payroll and the various types of schemes that are common to the area.