We placed a staff accountant with one of our top clients who fell off. We quickly replaced this person with a qualified staff accountant who quickly demonstrated some disturbing behavior (personal Internet use, inappropriate sites, etc.) I recommended that we replace this person but they chose to keep her. She has since left and as my client reviewed year-end records, they’ve discovered she was stealing money through creatively manipulating direct deposit records.
My client wanted to know if our bond insurance would cover their loss, which it won’t, since she wasn’t our employee. My client understood and did say they would continue to utilize our firm. However, I feel our reputation is shattered with this client. I’m in a small town, and this client is highly respected and well networked. I want to do something to save face. I’ve offered to conduct background checks on all future hires but feel I need to do more. Is there anything you can recommend in addition?
Frank S., San Francisco, CA