BY THE NUMBERS Segregation of Duties in the Dealership Accounting Office IDENTIFYING INCOMPATIBLE DUTIES AND BUILDING COMPENSATING CONTROLS By Tasha Sinclair, CPA/ABV Principal, Tetrick & Bartlett PLLC Dealership accounting offices carry more fraud risk than a typical small business. Vehicle sales, F&I products, floor plan draws, manufacturer incentives and high-dollar cash receipts all flow through a back office that is often just two or three people. That combination — large dollar volume and limited staff — is exactly where segregation of duties (SOD) breaks down, and where most dealership fraud actually occurs. It’s rarely a stranger; it’s almost always a trusted employee with too much unchecked control over a process. WVADA NEWS 10
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