tip of the Month: Embezzlements--The Low-hanging Fruit.

• Position: CAMICO Insurance

Embezzlement claims against CPAs are often the easiest to avoid, yet CPAs often miss the red flags--embezzlement prevention isn't necessarily part of their job. However, public or "jury standards" dictate that CPAs uncover fraud in all engagements, advise the client of all significant matters, document and "get it right."

Most small-business clients have inherent embezzlement risks stemming from small, unsophisticated accounting functions that lack segregation of duties. Often the owner doesn't know how to combat these risks. Upon accepting the client, and biannually, send a short letter to all small-business clients warning them about embezzlement risks, suggesting the steps they can take to reduce the risks and offering your services to help them...