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Compass Check Offers Free Internal Controls Analysis
Small Business Consulting Firm Launches Program To Prevent Fraud, Embezzlement & Internal Theft
"It sounds harsh, but most small-business fraud starts with the owners," said Compass Check founder Robert C. J. Parry. "They’re often too trustful or focused, and typically have fewer staff to evaluate their internal controls.
Parry said that many entrepreneurs think that because they’re small, they don’t need robust systems. "They learn their lesson the hard way," he said. According to Mr. Parry, the small Monrovia, CA Police Department currently has several open cases with over $50,000 in loss from enterprises that are learning this lesson.
"We recently learned that a client we had been advising through a potential sale to an employee had actually been a victim of theft by that employee for years," said Parry.
According to widely published statistics, 40% of small businesses are victims of embezzlement at some point. At least 6% of small business revenues are stolen and 30% of small business bankruptcies are attributable to fraud.
The Compass Check internal controls analysis looks at company operations from the cash register to the books to the bank, and will advise the owners of places where they are vulnerable. The analysis was designed by a member of the Compass Check team who was a Big 4 CPA and lead the internal controls and audit programs for several well-known firms.
For more information, contact Compass Check Consulting at (626) 698-0878.