By Chrissie A. Powers, CPA/CFF, CFE, CVA
One of the most dangerous items in the office is the signature stamp. It can fit in the palm of your hand and cause millions of dollars in damage.
We strongly discourage management from pre-signing checks or using signature stamps as it overrides the checks and balances of reviewing the supporting documents prior to signing the checks. No matter how basic this seems, business owners need to be cautious. Authorization of payments should only be given by the appropriate signatories once adequate expense records have been produced. Schedule time to review even a sampling of invoices as the appearance of ones work is being reviewed can discourage someone from using the company bank account as their own personal piggy bank.
If your clients currently have signature stamps laying around, destroy them immediately to avoid becoming a statistic. If you have any questions or would like to discuss signature stamps in more depth, please contact us at 614-745-5192.