Lesson learned: Printed checks are not “safe” checks
A recent embezzlement case highlighted a very preventable control failure: checks that remained accessible after being printed. Instead of being secured and distributed immediately, the checks were left available, creating an opportunity for misuse.
The takeaway is simple: printed checks are just as vulnerable as blank check stock. Use the following tips to reduce your risks:
- Don’t leave check stock laying around.
- Require prompt mailing of checks.
- Limit access to the check stock.
- Better yet . . . don’t use checks!
One of the first audit clients I ever visited stored their check stock in clear racks net to the bookkeeper’s desk . . . in a publicly-accessible area. Don’t be that guy! Strong physical controls over checks remain a foundational safeguard against fraud.
Or just make all payments electronically.