
APPENDIX B
Danger Signs of Fraud,
Embezzlement, and
Employee Theft
1
I. Situational Pressures
A. Individuals Against the Company
1. Do any of the key employees have unusually high
personal debts or financial losses (i.e., high enough that
they pro bably could not meet them with their own level of
income)?
2. Do any of the key employees appear to be receiving incomes
that are inadequate to cover normal personal and family
expenses?
3. Do any of the key employees appear to be living beyond their
means?
4. Are any of the key employees involved in extensive stock
market or other speculation (i.e., extensive enough so that a
downturn would cause them severe financi ...