Avoiding Common Payroll Auditing Errors

Posting by Phil Vivirito

If you are new to payroll auditing, there are several common pitfalls that can wreak havoc on your data.  However, they can easily be avoided if you know what to look for and what clarifying questions you need to discuss with an employer.  Here are four common errors with practical solutions for avoiding them and ensuring accurate payroll audits.

1. Counting Overtime Twice
Issue: Some payrolls list total hours and total overtime hours separately.  The overtime hours appear […]

November 8, 2012 Payroll Audit Read more...

Fraud Prevention: Trust is Not an Internal Control

Alex Helfand, ENCE

Of course you trust your employees.  Trust is essential in order for day-to-day operations to properly function.  However, even if you feel that you have every reason to completely trust your staff, you still need internal controls.  Especially in a difficult economy, if a need exists and the opportunity arises, even the most unlikely perpetrator can become a guilty party.

Why You Need More than Trust
No business owners want to believe their employees will steal.  Do you find […]

November 1, 2012 Accounting, Forensic Accounting Read more...

WHAT’S YOUR TIN AGAIN? HELPING THE IRS CLOSE THE “TAX GAP.”

In spite of pervasive 1099 and W-2 reporting requirements, the US income tax system for most small businesses is still largely an honor system.  According to IRS studies, this segment of taxpayers account for approximately 84% of the $450 billion estimated tax gap.  As a result, the IRS continues the push to increase 1099 reporting to try and whittle away the large amount of unreported or underreported income among small businesses.

This push can clearly be seen in the question […]

October 26, 2012 Accounting, Family Owned Businesses, Tax Read more...

Bond Beebe Promotes Four Professionals

Bond Beebe, a certified public accounting and advisory firm with offices in Bethesda, Maryland and Alexandria, Virginia, is pleased to announce the following promotions of several firm professionals, effective October 1, 2012: Kelly Lopez has been named Tax Manager; Joshua Smith, Alex Helfand, and Tara McKinney have all been named Seniors in the Audit Department.  The Personnel Committee of Bond Beebe has recognized these professionals because they have demonstrated strong leadership, flexibility, good judgment and outstanding performance. “We are […]

October 25, 2012 Firm News & Events Read more...

Bond Beebe Employees Raise Over $2,000 to Support Cancer Research

For the third consecutive year, Bond Beebe, a certified public accounting and advisory firm with offices in Bethesda, Maryland and Alexandria, Virginia, participated in the Leukemia & Lymphoma Society’s Light the Night Walk which took place in Rockville, Maryland on October  6, 2012. The Firm’s team of 22 employees raised over $2,000 to support cancer research.  Light the Night Walk is the Leukemia & Lymphoma Society’s annual fundraising event that pays tribute and brings hope to people battling cancer; […]

October 22, 2012 Firm News & Events Read more...

2013 IRS INFLATION ADJUSTMENTS

Yesterday, the IRS announced the annual inflation adjustments for 2013.  Here are a few highlights:

The annual gift tax free exclusion for gifts increased to $14,000 from $13,000.
The amount which is used to reduce net unearned income reported on a child’s return that is subject to the “kiddie tax” increased to $1,000.
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), 457, or the federal government’s Thrift Savings Plan increased to $17,500 from $17,000.
The […]

October 19, 2012 Accounting, Tax Read more...

Protect Yourself Against Investment Fraud: Regularly Review Your Account Statements

John Merchant, CPA, CFE

Do you have an investment account at a bank or with a brokerage firm?  And, if so, do you carefully study the transactions in your account, either online or when you receive a paper statement?  If not, you should, regardless of how much you trust your banker or investment firm.

Unfortunately, many people simply check their balance to see if they have gained or lost value and ignore the details of transactions.  Recently, a PNC Bank investment […]

October 18, 2012 Accounting, Audit, Forensic Accounting Read more...

Don’t Provide Benefits to Ghosts – Updated Public Death Master File Disclosures

Linh Crider, CPA, CFE

For large benefit plans, ensuring that only eligible members receive benefits can be a challenge.  In order to update their records, many plans utilize the Public Death Master File, a listing of all deaths reported to the Social Security Administration (SSA) from numerous sources.  These sources include family members, funeral homes, hospitals, states, Federal agencies, postal authorities and financial institutions.

However, the SSA determined last year that it can no longer disclose protected state records.  This change […]

October 17, 2012 Accounting, Benefit Plan Accounting, Forensic Accounting Read more...

Controller Takes a Bite Out of DC Area Restaurant with Embezzlement Scheme

Alex Helfand, ENCE, Computer Forensic Specialist

Whether it is for a business lunch or a quick bite with friends, local DC restaurant Clyde’s is a popular dining option.  Unfortunately, the restaurant has become a fraud statistic as their former Controller recently pled guilty to embezzlement.

Nancy Preston, Clyde’s Controller of 30 years, recently pled guilty to embezzling $647,547 over the span of a decade.  She used these embezzled funds to pay personal credit card bills and also contracted with a Clyde’s […]

October 3, 2012 Accounting, Forensic Accounting Read more...

Preventing Fraud with Surprise Audits

Alex Helfand, ENCE, Computer Forensic Specialist

Surprise audits are an important, but often overlooked fraud prevention mechanism.  Many unscrupulous employees anticipate the regular audit and cover their tracks accordingly, but a surprise audit can expose the usually hidden graft.   Additionally, the simple threat of a potential audit can deter fraudulent employee behavior.

These audits often cover the same areas as a routine audit, but in more depth.  Areas of focus in a surprise audit can include:

Accounts Payable.  A common occupational fraud […]

September 26, 2012 Accounting, Audit, Forensic Accounting Read more...