Fraud and forensic issues are becoming increasingly important in litigation. The exposure of accounting fraud in the realm of public companies has increased everyone's awareness to this long-standing problem.
Fraud affects nearly every company to some degree. In fact, over 6% of every dollar of commerce transacted in the
U.S. is lost to some level of fraud.
Forensic procedures involve detailed analysis of financial transactions underlying the books of account. Uncovering asset misappropriation, theft and embezzlement requires skill, training and experience.
We have been involved in numerous cases involved investigating fraud issues, compiling evidence, and interviewing suspects. Further, the Certified Fraud Examiner designation denotes proven expertise in fraud prevention, detection, deterrence and investigation.
Forensic Analysis and the Business Valuation
A complete business valuation requires that income be adjusted to accurately reflect the true economic earnings of the business. Often times, business valuation procedures may not be enough, especially in situations where there is suspected accounting abuse.
Uncovering disguised deductions or under-reported income often requires forensic analysis. It is necessary that the business valuator investigate suspicious accounting activity to uncover the inappropriate accounting so that the economic earnings of the business are presented fairly. This is a common procedure when dealing with disgruntled parties in divorce cases.
Financial statement fraud will directly affect the value of a business, since the basis of the analysis begins with the financial reporting.
The best offense is a good defense. Developing a meaningful fraud deterrence strategy will likely stave off most fraud issues. We can assist you in developing a strategy through proper internal controls and approvals that will minimize the opportunity for financial statement fraud or asset misappropriation.