What to Do if Your Manager is Committing Fraud, Part 8 of 8
Part 8: A Step-by-Step Action Checklist
Use this checklist as a practical roadmap once you have identified potential fraud:
1. Do not confront the suspected fraudster or discuss your suspicions with colleagues.
2. Do not alter, move, or destroy any documents, files, or communications.
3. Begin a private personal journal documenting what you observed, with dates and specifics.
4. Note the specific accounts, journal entries, vendors, or transactions that concern you.
5. Review your employment agreement and any confidentiality or non-disclosure provisions.
6. Consult a whistleblower or employment attorney before taking any external action.
7. Identify the appropriate reporting channel(s) with your attorney's guidance: SEC, IRS, FBI, internal audit committee, or state authority.
8. Prepare a detailed, fact-based report with specific amounts, dates, accounts, and source document references.
9. File your report through the appropriate channel, preserving copies of your submission.
10. Continue performing your regular job duties and maintain professional conduct.
11. Document any unusual workplace interactions or potential retaliatory actions.
12. Begin a confidential job search and prepare your exit plan.
13. Consult your attorney again before submitting your resignation.
14. Resign professionally and in writing, returning all company property.
15. Retain records of your whistleblower submission, correspondence, and personal documentation in a secure personal location.
Final Thoughts
Being an accounting professional who discovers fraud is a lonely, frightening experience. You are holding information that most people in your organization don't have, and you're navigating a situation that most people in your profession hope never to face. But your training — the same training that helped you see what others missed — is exactly what will guide you through this.
Fraud thrives in silence. The Association of Certified Fraud Examiners estimates that organizations lose a significant portion of revenue to fraud every year, and the median duration of a fraud scheme before detection is well over a year. That means the longer it continues, the greater the harm — to the company, its employees, its investors, and sometimes to you personally if your silence is later construed as complicity.
You have rights. You have protections. And you have options. Use them.
Have Questions? MMB MBA Can Help.
At MMB MBA, we specialize in forensic bookkeeping, QuickBooks consulting, and helping businesses untangle financial irregularities. If you suspect fraud in your organization — or if you're a business owner who suspects something is wrong — we can conduct a discreet, professional review of your books and help you understand what you're looking at.
Contact us today at www.mmbmba.com
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