Cases involving fraudulent financial reporting,
misappropriation of assets, tax fraud, money laundering and other types of
malfeasance are frequent and result in great public scrutiny. Forensic
accountants are often relied upon to investigate suspicious transactions or
reported financial results and to identify relevant indicia of fraud. These
investigations may support criminal proceedings or civil litigation, or they
may be derived from inquiries made by company management, the board of
directors, corporate shareholders or outside accountants.
We have the necessary skills and experience to
investigate and report on many types of fraudulent activities. Example
services we provide include:
■ Review corporate policies and standard
Test for unusual financial statement
■ Assess Internal Controls
Evaluate the purpose and classification of
Conduct Employee Interviews
Perform statistical sampling exercises
■ Evaluate accounting records and supporting
Identify unrecorded transactions or missing
■ Analyze third-party records
Perform complex funds tracing analyses
Our fraud experience is illustrated by the following
- Documented and valued fraudulent excessive billings by an
insurance broker to the manager of approximately 100 apartment complexes
that included HUD-assisted low income housing.
- Demonstrated that the CFO of a failed company reasonably
relied upon outside auditors to evaluate internal controls and test for
accounting misstatements to prove that he was not liable for early revenue
recognition, falsification of inventory and other accounting irregularities.
- Consulted with defense attorneys for two former bank vault
employees accused of embezzling over $11 million. Analyzed the design and
application of the vault’s internal control systems.
- Examined accounting records and support documents of a propane
distributor to identify inappropriate expenditures by one of the business
- Traced movement of funds through numerous trading and personal
accounts of an account executive at a major securities dealer who was
charged with securities fraud.