PGA is often called upon to audit many aspects of the auto business as it relates to fraud.
Through extensive investigation into many fraud cases we realized that it may not be limited to one department or even one person. This is why it is crucial to have a global view of your books as well as a "granular" view to really understand what is happening.
As dealers continue to thrive in this current market it is hard to shift focus from maintaining everyday business to "deep dives" into the books and self-audit. Before too long employee fraud can become a major issue before it is discovered. Now more than ever it's essential to maintain your processes and pay attention to the details.
In the next several newsletters we will take a close look at the areas below and how you can identify and ultimately prevent fraud in your dealership.
While some of the scenarios below can be attributed to poor bookkeeping and lack of attention to detail, some can definitely be intentional.
- Employees personal or family bills being paid by the company
- 401K contributions being applied to the wrong person, on purpose
- Pay Pal and EBay proceeds going into an employee's personal account
- Employee cashing customer tag refund checks
- Service and parts work applied to "policy" for employees, friends and family
- Misuse of petty cash (see our previous newsletter)
- Falsifying time records for extra hours and even overtime
- Gas for personal use
- Employee benefits not being deducted or not deducted enough
Please feel free to contact us through this email. Are there any areas of fraud that you are most concerned with? We'd be happy to address them either over the phone or in person.