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Sponsored by Lorman Education
Product ID: 406451EAU
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Detecting and Avoiding Expenses Fraud

OnDemand Webinar (90 minutes)

Limit uncontrolled expenses by learning ways to better identify wasteful expenses, fraudulent expenses, and inefficient employees.Loss of efficient control of reimbursable expenses, in connection with the operation of the business, has been described as the single most serious issue with regard to the success or failure of a business. This may be an overstatement, but nevertheless invites attention to uncontrolled expenses that may seriously impact the business. This topic will help bring this issue to your attention, and hopefully get it firmly fixed in your brain. You will benefit by being able to better identify wasteful expenses, fraudulent expenses, and inefficient employees. The material will also draw your attention to dealing with dishonest employees who pad their expense reimbursement applications. The problem of the employee becoming angry, embarrassed, or having hurt feelings, if caught with invalid expense items, is also addressed, with suggestions for how to police the expense process without causing unnecessary stress on the employer or employee, and, especially dealing with new employees, or long-time trusted employees found cheating.


Morgan D. King, Esq., Morgan D. King



• The Firm or Company Reimburses Employees for Out-Of-Pocket or Credit-Card Expenses Ostensibly Paid by an Employee

• Some Employees Take Advantage of Company Expense Reimbursement by Inflating or Fabricating Expenses

• This May Happen for Expenses Ostensibly Already Paid by the Employee, or Request for Company's Advance Payment of Necessary Expenses Such as Air Fare, Vehicle Rental, Hotel Rental, Gas, Office Supplies, etc. That the Employee Then Cancels and Pockets the Refund

• Firm Officers Who Have No Time to Carefully Examine Expenses, or Simply Trust an Employee

• Employees Think the Boss Won't Examine Them Expense Reports, Because the Boss Is Too Busy With Other Tasks, or Trusts the Employee

Ways to Cheat

• Entering Phony or Inflated Expenses to an Expense Report or Wage-Check

• Charging for Necessary Advance Costs That Are Paid by a Different Department

• Claiming Reimbursement of Expense That Was Actually Paid to a Friend or Accomplice

Steps to Prevent or Uncover Cheating

• Demand Receipts and or Credit Card Invoices

• Develop Clear Policies and Have Employees Sign off on Them

• Make Supervisors Accountable

• Avoid Duplication of Reporting Expenses; e.g., Office Supplies

• Check Employees' Advance Expenses (e.g., Air Fare) That Are Then Cancelled and the Employee Pockets the Refund

• If a Large Firm, Consider Thinking About Confidential Whistle-blowers Whose Identities Are Not Disclosed. Post a Whistle-blower Box out of View of Staff

• Examine All Credit Card Reports

How to Present Policy and Procedures to Employees

• Heaven Forbid That You Hurt Employees' Feelings by Suggesting That Certain Measures Are Necessary

• If Verbalized and Signed off as Part of the Hiring Process

• Blame Outside Business Consultants for Making You Do This