Embezzlement and Computer Software

Two companies I have met with in the last two years discovered embezzlement in the last few weeks. One was on the front page of one section of the local newspaper. The other was reported in confidence by a CPA friend.
Interestingly enough, I’ve been privy to information on about a half-dozen embezzlement cases in my 25 year career. A couple were clients; a couple were clients of friends; and a couple were businesses I’d met with during the years.
There is, however, a common thread in all these cases: in every case–100%–the computer systems the companies were operating with were out of date in some way. The businesses had all identified areas in which they wanted to improve their systems, but for one reason or another, had failed to do it.
Does this mean that the computer systems were the source of the fraud? No. I think it means that the fraudster didn’t want a detailed examination of the business processes, and didn’t want to put better data in the hands of management.
I think the real commonality in all of these situations was that management wasn’t managing with data.