Real Scenarios, Real Losses: The Cost of Ignoring Red Flags
An accountant rerouted ₦3 million before anyone noticed; here’s how it could’ve been prevented.
Meet a small business owner, Sarah, who was managing a growing company. Everything seemed fine, but her accountant, trusted for years, started exhibiting small signs of irregular behavior. Late submissions of reports, a few discrepancies in expense reports, and vague answers to simple questions about cash flow nothing that raised alarm bells immediately.
But as time went on, Sarah didn’t pay much attention to these red flags. After all, her accountant had been reliable for years, and she was focused on scaling the business. Until one day, Sarah discovered that ₦3 million had been quietly rerouted into a personal account, hidden in a series of poorly documented transactions. The funds were gone, and the trust Sarah had in her accountant was shattered.
How did this happen? The root of the issue was simple: a lack of internal controls and oversight. There was no segregation of duties. The accountant handled both the approval of payments and the record-keeping, making it easier to cover up the fraudulent activity. There was also no regular audit process to catch the discrepancies before they spiraled into a major loss.
If Sarah had implemented even the most basic internal controls, such as segregation of duties, dual approvals for transactions, or regular, independent audits, the fraud might’ve been spotted before the funds disappeared. The signs were there, but the absence of these critical controls allowed them to go unnoticed.
At Networth Adjusters, we specialize in spotting and closing the gaps that allow fraud to thrive. Our audit services, fraud risk assessments, and internal control systems ensure that businesses don’t fall victim to the silent losses that can derail growth and damage reputations.
The truth is, fraud doesn’t happen overnight, it’s the result of weak controls and missed red flags. Let us help you spot those gaps before fraud can strike.
