According to New Newspaper on September 19, Hai Duong: The female chief accountant who embezzled nearly 20 billion VND was sentenced to life in prison. This story has once again sounded a "wake-up bell" for business owners about the accounting - finance - business expenditure management process.
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Summary of the case of female chief accountant embezzling nearly 20 billion
According to the case file, Hoa worked as chief accountant at Sansei Vietnam Co., Ltd. During that time, Ms. Hoa took advantage of her position and authority to illegally withdraw cash and appropriate nearly 20 billion VND.
Specifically, after 41 times of preparing and signing a check to withdraw cash with the content "withdraw cash to fund" and submit it to the General Director/Director to sign for release for purchase purposes, She appropriated 19.74 billion VND and 472 USD, equivalent to more than 19.75 billion VND. She used this money for personal expenses, even to invest in virtual currency on the internet, leading to serious loss.
Why is it so easy for a female chief accountant to embezzle so many times?
The story of the asset embezzlement case of Nguyen Thi Yen Hoa, a female chief accountant in Hai Duong, has attracted public attention and raised many questions about financial management in businesses. Hoa's behavior not only caused great damage to the company but also served as an important lesson about the necessity of establishing and implementing a careful corporate financial management strategy.
It can be seen that Nguyen Thi Yen Hoa has repeatedly deceived the business owner and appropriated such a large amount of money through disguised transactions related to the company's business activities. This can be explained through a number of reasons:
- Decision-making power as an accountant: The chief accountant usually has the authority to make decisions about conducting financial transactions, signing documents, and managing cash. This creates favorable conditions for them to take advantage of company assets without being detected. They have the ability to control financial transactions, thereby concealing illegal activities.
- Deep understanding of the financial system: Chief accountants often have in-depth knowledge of the company's financial system, including how accounts work, transaction processing, and tax regulations. This understanding allowed them to find a way to cover up the embezzlement activity skillful way.
- Lack of internal control: If the company does not establish strong internal audit procedures or does not perform periodic audits, the chief accountant may use this opportunity to commit unauthorized acts without being detected.
Most specifically, the fact that business owners do not know about these embezzlement activities is often due to trust in the chief accountant and lack of regular supervision and inspection.
Discuss control capabilities and corporate financial management strategies
This case raises questions about the accounting and financial management processes of businesses. Businesses need to establish strong internal processes and periodic audit systems to ensure financial transparency and control. Businesses can:
- Separation of roles: To prevent intrusion and embezzlement of assets, businesses should separate roles and functions within the finance department. One person should not control all aspects of the financial process
- Internal control: Ensure that employees in the finance department are trained on the procedures and risks associated with embezzlement. Businesses need to establish strong internal controls and processes to prevent abuse of authority and improper cash withdrawals. In particular, perform periodic internal checks.
- Financial transparency: Ensure that all financial transactions are recorded and reported in a transparent manner. Businesses should consider using corporate financial and spending management tools to closely monitor and control real-time data.
- Continuous audit and evaluation: Conduct internal audits and periodic reviews to ensure that the financial management strategy remains effective and relevant to the changing business environment.
- Use technology-based corporate finance/business expenditure management tools: Automating accounting/financial processes will help minimize "loopholes" in the business, avoiding cases of embezzlement by employees. Besides, business expense management tools such as Bizzi Expense It also helps business owners track "realtime" transactions - immediately, helping business owners/financial managers/senior managers promptly detect any unusual signs.
Nguyen Thi Yen Hoa's story is a reminder for business owners that financial management is more than simply recording data. It is an important part of the business's overall strategy. Businesses need to upgrade cFinancial management strategy and application of comprehensive and strict expenditure management measures to ensure the company's sustainable development.
From this case, hopefully business owners notice The importance of financial management in businesses and need to apply appropriate measures to prevent acts of embezzlement and protect corporate assets.
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