Originally Posted by churumbeque
He said it is a smaller community and it was a large portion of the budget. Now that city is destitute. Doesn't anyone know how to read a P/L statement in that town? Not sure how you wouldn't see some expenses that didn't make sense for the size of the town.
There are several answers to that.
One, she was the ONLY one who ever looked at a P&L, because they trusted her explicitly and she had backup for everything. It's easy enough to make up fake invoices for fake companies, and auditors are looking for major discrepancies, not trying to determine which customers are real.
Two, it was a one-person operation, so she was in total control of the AP, AR, vendor files, customer files, and the financial statements. The only reason she got caught was because she took a lot of time off, and the temp found something on a bank statement that looked hinky.
She got careless and arrogant. Probably thought because she'd gotten away with it for so long, that nobody would ever figure it out. She was wrong.