BECAUSE EMBEZZLEMENT IS COMMITTED BY PERSONS IN POSITIONS OF TRUST, OWNER-MANAGERS MAY LOSE A LOT OF MONEY BEFORE THEY EVEN SUSPECT THE CRIME. EMBEZZLING SCHEMES INCLUDE SIMPLY POCKETING CASH FROM SALES; LAPPING, OR STEALING A PAYMENT FOR ONE CUSTOMER'S ACCOUNT AND COVERING IT WITH THAT OF ANOTHER; PAYROLL FRAUDS; FICTITIOUS PURCHASES; AND PADDING EXPENSE ACCOUNTS. OWNERS CAN COMBAT THESE SCHEMES, HOWEVER, BY SETTING A GOOD EXAMPLE IN THEIR OWN USE OF COMPANY FUNDS AND PROPERTY; ESTABLISHING A CLIMATE OF ACCOUNTABILITY IN THEIR BUSINESSES; AND USING ADMINISTRATIVE PRACTICES THAT CAN PRODUCE COURT EVIDENCE, IF NEEDED. OWNERS AND MANAGERS CAN ALSO INSTALL AN ADEQUATE ACCOUNTING SYSTEM WITH APPROPRIATE INTERNAL CONTROLS TO SAFEGUARD ASSETS AND INCLUDE ANNUAL AUDITS; MAKE SURE EMPLOYEES ARE NOT RESPONSIBLE FOR BOTH RECEIVING AND ACCOUNTING FOR CASH OR PAYMENTS; AND USE MONTHLY BUSINESS OPERATIONS STATEMENTS. MOREOVER, OWNERS CAN ADOPT BUSINESS OPERATIONS HABITS THAT PROTECT THEIR ASSETS SUCH AS SCREENING ALL EMPLOYEES PERSONALLY, USING A POST OFFICE BOX FOR MAIL THAT INVOLVES CHECKS, SPOT CHECKING ACCOUNTING RECORDS, AND PERSONALLY APPROVING UNUSUAL DISCOUNTS AND BAD DEBT WRITE-OFFS. CLUES THAT EMBEZZLEMENT MAY BE OCCURRING INCLUDE AN INCREASE IN SALES RETURNS, UNUSUAL BAD-DEBT WRITE-OFFS, A DECLINE IN SALESOR PROFITS, AND INVENTORY SHORTAGES. IF OWNERS SUSPECT EMBEZZLEMENT, THEY SHOULD CONTACT THEIR ATTORNEYS AND APPROPRIATE OTHERS, BEING CAREFUL TO AVOID FALSE ACCUSATIONS. COMPUTER-ASSISTED FRAUD CAN BE MINIMIZED WITH ADEQUATE INPUTSECURITY MEASURES.