Hope is not an audit strategy!
Posted by Scott Hambrick on Thu, Jan 14, 2010 @ 06:40 AM
Here at Data Storage, our man Dymian Kritikos (D!) is always saying, "Hope is not an audit strategy." Time and time again we see companies that have no records management policy or procedures. D constantly worries about these organizations. When times get tough, these companies suffer. Big time. In the event of natural disasters, often vital records cannot be found. These records might help the company collect on debts, borrow money for recovery or defend in legal actions. In the case of audits, it's unbearable. Audits are already an expensive, stressful proposition with the best records keeping practices. With no records keeping strategy, it's a nightmare.
Here's another nightmare. Arrow Trucking of Tulsa, OK recently filed bankruptcy and is in big trouble. No one in that organization can produce even the most basic financials.
From the Tulsa World.
Patrick J. Malloy III, bankruptcy trustee in U.S. Bankruptcy Court for the Northern District of Oklahoma, said Arrow Trucking’s Chapter 7 bankruptcy filing last Friday is without precedent. “We don’t have a schedule of assets, a schedule of liabilities and a statement of financial affairs,” he said. “Anyone who would be capable of providing that is not available. We’re going to have to reconstruct everything. It could take weeks.”
What little value is left in the $500 million dollar company will likely be eaten up in legal fees and forensic accounting. How far does it go before the officers in the corporation are called on the carpet? Oops, it's already happening. Again from the Tulsa World.
"Transportation Alliance Bank..... filed a lawsuit against Arrow and its executives last week, alleging double-billing of invoices, bank fraud, wire fraud and “racketeering” activity that cost it $12.5 million."
Hope is not a records strategy!
Click through to read the entire article on the Tulsa World site →