Friday, April 22, 2011

Auditors Miss Drake University Fraud

by Gary Snyder

Audits often miss thieves' sophisticated attempt at fraud.

For six years, Drake University’s student accounts director was stealing from the university. Suspicious that there was malfeasance, the Drake Vice President that oversees business and finance, asked outside auditors to look at student accounts a year and a half ago. This in spite that internal auditors at Drake checking annually for proper management of university operations. Two Drake University audits failed to turn up a pattern of missing money from student accounts. Finally a recent internal investigation turned up evidence that led to police charging former Drake employee in connection with the embezzlement of $470,000 from the institution.
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