Preventing Fraud with QuickBooks Software Controls

Earlier I talked about how to use QuickBooks and Segregation of Duties to prevent Fraud. Now I will discuss how to use the software controls within QuickBooks to deter Fraudulent activity.

One of the most important features within QuickBooks in the Audit Trail. The Audit Trail tracks who is making entries into QuickBooks. You especially want to see who is deleting transactions, such as checks. Since QB 2006, the Audit Trail cannot be turned off.

The next thing you want to do is to set up Roles and Passwords to limit each employee's access to QuickBooks. They should not have any more access than what they need to do their jobs. You especially don't want employees to be able view payroll information. Also, since each employee has his/her own sign on to QuickBooks, it is much easier to track them on the Audit Trail.

The next thing to do is to lock prior periods with a Closing Date. You definitely don't want employees to be able to go into QuickBooks and change information from prior periods.
For maximum security, assign a password to the Closing Date.

Finally, make use of QuickBooks reports. The Voided/Deleted Transactions Report and the Closing Date Exception Report are two that you would want to review on a weekly basis.

By following these suggestions, you can improve your chances of detecting suspicious activity in QuickBooks.