Newest QuickBooks Fraud, AuditMyBooks, Audit My Books, QuickBooks Preferences

Filed in Intuit QuickBooks by on September 14, 2011

The newest QuickBooks fraud story is old news if you read my earlier QuickBooks Fraud post.

The related oldest – newest QuickBooks fraud story headline comes from Pennsylvania: Erie man faces court date on charges of stealing from Edinboro business. This newest QuickBooks fraud thief (a college student needing tuition money) reportedly already admitted it. He apparently used QuickBooks in several ways you can easily prevent.  

Unless you, as QuickBooks Administrator, set a Preference (Edit, Preferences), QuickBooks lets users create and print an invoice without saving it. The related newest QuickBooks fraud is the oldest and most popular, because it is easy to delete such unsaved invoices and pocket related cash. This does not even leave a QuickBooks audit trail entry. As I said before, “Intuit facilitates this by letting users print invoices and delete them, without first saving them to the audit trail. It finally got a preference to require saving, but it is (was?) off by default. Intuit executives know this often happens, …” This may be good if business owners wish to cheat on taxes, but it is terrible if employees can do it.

We recently devoted a South Florida QuickBooks Meetup to a guest speaker from AuditMyBooks (Audit My Books). This AuditMyBooks (Audit My Books) program analyzes QuickBooks files for indications of errors and fraud. One reason for its sucess is that its creators eagerly respond to user suggestions, including my suggestion that AuditMyBooks report on this loophole. I am now an AuditMyBooks (Audit My Books) guest blogger, so this post may get AuditMyBooks to soon report on many other often unused QuickBooks Preferences that prevent fraud. For example, the newest QuickBooks fraud involved an employee who not only kept money from his own deleted invoices, but who changed the work of others to steal more money. AuditMyBooks (Audit My Books) could report on the QuickBooks Preference that could stop such changes and other QuickBooks Preference changes to increase internal control.

An AuditMyBooks (Audit My Books) analysis of the QuickBooks audit trail also could show entries requiring one or more changes, as this indicates doubt, with a greater chance of error. Of course, the more times someone changes an entry, the more likely there could be an error.  

There are many more QuickBooks Preferences that quickly and easily help you determine responsibility and prevent fraud, while increasing accuracy and speed. They are so important that I will not work on a QuickBooks file until I change many of them. That is why I will soon have a series of posts on setting QuickBooks Prefrences.



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