I’m in Operations but deal enough with supply chain finance to keep myself involved in the accounting world. How was a materially significant problem like this not caught in an audit earlier? It seems insane to me that a single employee could propagate that enormous of a misstatement without someone else noticing internally, or an audit catching it when it started 3 years ago. Seems like it should have been caught when it was a $250k problem, and there was a severe lack of controls and internal & external checks for it to snowball to such an extreme level.
$132-$154M of small package delivery expenses over 3 fiscal years. Can only imagine the number of transactions to trace just to discover the magnitude of this error. As far as who else is involved, a question could be who is that employee's supervisor? Possibly goes back to the whole internal controls issue.
I’m in Operations but deal enough with supply chain finance to keep myself involved in the accounting world. How was a materially significant problem like this not caught in an audit earlier? It seems insane to me that a single employee could propagate that enormous of a misstatement without someone else noticing internally, or an audit catching it when it started 3 years ago.
Seems like it should have been caught when it was a $250k problem, and there was a severe lack of controls and internal & external checks for it to snowball to such an extreme level.
$132-$154M of small package delivery expenses over 3 fiscal years. Can only imagine the number of transactions to trace just to discover the magnitude of this error. As far as who else is involved, a question could be who is that employee's supervisor? Possibly goes back to the whole internal controls issue.
quite certainly he's not the only one involved here, this needs to be further investigated from and external party.
Lone gunman theory
Shout out to Macy's.