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This holiday season, Macy’s Inc. is grappling with more than Black Friday stress. Internal accounting fraud has resulted in $150 million in misreported delivery expenses, shaking investor confidence. A rogue employee concealed millions in delivery expenses over three years, delaying Macy’s Inc.’s third-quarter earnings report and prompting an independent investigation. Inc. offered important lessons small business owners should take from the mishap, such as the importance of timely balance sheet reconciliations and of proactive financial oversight and the danger of overreliance on audits for fraud prevention.
By Rebecca Meiser
Contributor, Commerce + Communities Today and Small Business Center
ICSC champions small and emerging businesses in getting from business plan to brick-and-mortar.
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