Posting by Andrew Staab
As Fund Counsel, I am often asked “How many cases do you win at trial?” I say without committing to a number or won-loss ratio, “A few.” I must admit that going to trial is not something I particularly savor, because Taft-Hartley collections law is slanted so strongly in favor of the Fund that cases should never go to trial. I have preached that if a Fund’s delinquency case goes to trial, there might be something […]
Posting by Phil Vivirito
If the employer is running you an electronic report from their payroll, ensure you ask the following few, but very important, questions:
Is this the entire payroll? The employer may be producing a query just for your audit and exclude certain job classes or only include employees that they are reporting. The employer may forget about terminated employees and only include currently active ones.
Are all pay types or pay codes included? The employer may believe that certain […]
Posting by Phil Vivirito
You have called an employer to schedule a payroll audit and the employer states ‘I’ll save you the trip; I can easily send you the payroll in an electronic format.’ Thinking about the travel expense savings you happily say yes. So now you await the records arrival and make your plan for doing the audit in your office. When the records do arrive they are usually in one of the following formats: PDF, a custom report […]
Posting by Larry Beebe, CPA
Unsafe Conditions
In very rare instances, the payroll auditor may be faced with one of the following:
1. Unsafe physical environment in the area inside the employer’s premises.
2. Unsafe physical environment in the area surrounding the employer’s premises.
3. Sexual suggestions or threats.
4. Threats of physical violence.
5. Display of weapon by the employer.
In any instance where the auditor feels threatened, he/she should immediately remove himself/herself from the employer’s premises. The conditions encountered by the auditor should be provided to the plans attorney. Often, […]
Posting by Larry Beebe, CPA
Insufficient Work Space
Sometimes an employer representative thinks the auditor will go away faster if he/she is given inadequate working space, or if the space is deliberately hot or cold. When I suspect an employer is doing this, it backfires on the employer. I am suspicious that the employer is hiding something and I work harder than ever to find deficiencies.
If inadequate work space is provided, the auditor should do two things. The first thing is […]
Lawrence R. Beebe, CPA, Principal
In this series, we are discussing specific areas where fraud might be likely to occur within an organization and the steps management can take to detect and prevent fraud.
Net Pay Does Not Tell the Whole Story
A company president took pride in signing the company’s pay checks. He knew that owner-manager controls were important, so he looked carefully at each paycheck as he signed it and he knew what each person’s bet pay should be. He […]
Posting by Larry Beebe, CPA
Does Not Allow the Auditor to Stay When He/She Leaves
You are at the employer’s office doing your payroll audit. It is 3:00 PM and you estimate that if you hustle, you can get done by 6:00 PM. The employer representative says that he/she has to leave at 4:00 PM and you will have to leave then as well.
You should inform the employer representative that you still have about 3 hours of work to do and […]
Posting by Larry Beebe, CPA
Delaying Tactics Once You Arrive
You arrive for your scheduled payroll audit at 9:00. The employer makes you wait for a half an hour and then suggests coffee which takes more time. The employer then says he/she has seen the list of records requested and takes hours to produce them one by one. You are told that lunch is from 11:30 to 1:00 and you have to leave. You are them reminded that quitting time is […]
Posting by Larry Beebe, CPA
Does Not Have the Necessary Records when the Auditor Arrives
The first step the auditor should perform is to sit down with the employer representative and insure that all records asked for in the documentation request (sent to the employer) are there and available for inspection. The auditor should know where every requested record is before the audit starts.
If the employer does not produce the record for this initial meeting, the auditor should begin making a […]
Lawrence R. Beebe, CPA
In this series, we are discussing specific areas where fraud might be likely to occur within an organization and the steps management can take to detect and prevent fraud.
The Auditor Can’t Find What Isn’t on the Books
Anytime a fraud occurs, someone is bound to ask “where were the auditors?” Many times the auditor should have suspected or caught the fraud. There are circumstances, however, where it is almost impossible to find the fraudulent conduct. One of […]
