General Journal Entries: A Common Vehicle for Employee Theft

Dealerships long have been vulnerable to employee theft due to their high volume of transactions, the high value of transactions, and the presence of large amounts of cash as well as the fact that most dealerships do not undergo regular audits of their financial statements. These thefts often are hidden through entries in a dealership’s general journal. The good news is that tightening the controls around general journal entries can help reduce the risk and increase detection of employee theft.