Fraud Investigation and Evaluation
As disappointing as it is, fraud is a reality for most business
owners. It occurs more often that you may think and can
be extremely damaging and costly to your business. Unfortunately,
most frauds occurring in the business environment are perpetrated by
employees, the very individuals who are relied upon to help make the
business successful.
Some important facts to know with respect to fraud, in reported
in the 2010 Report to the Nations on Occupational Fraud and Abuse,
published by the Association of Certified Fraud Examiners are:
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A typical organization loses approximately 5% of its annual
revenue to fraud.
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Small organizations (those with less than 100 employees) are
disproportionately victimized by occupational fraud.
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The median reported loss caused by occupational frauds (fraud
in which an employee abuses his/her position within the organization
for personal gain) is $160,000. For small businesses, the
median reported loss from occupational fraud was $155,000.
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For small businesses, the number one internal control
weakness that contributed to fraud was a lack of segregation of duties.
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Surprise audits are one of the most effective, but
underutilized tools in the fight against fraud.
When you suspect that fraud has occurred in your business or
your personal life, you need forensic accountants with the specialized
training and experience to assist you in investigating whether fraud has
occurred and then in evaluating the possible impact that the fraud has
had on your business or personal finances. Specifically,
you need professionals with an in depth understanding of business
information and reporting systems, accounting and auditing standard and
procedures, evidence gathering techniques and excellent communication
skills. Our professional team, composed not only of
certified public accountants (CPAs), but also a certified fraud examiner
(CFE), has the specialized skills and training needed to investigate
and evaluate fraud and embezzlements, estate or shareholder disputes or
assist in divorce accounting.
Fraud investigation is the act of determining whether
fraudulent activities have occurred. Fraud evaluation
involves the determination of the effect of the fraudulent activities.
Examples of the types of services we provide in this area are:
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Evaluate your company's risk for fraud.
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Evaluate or create fraud prevention policies tailored to your
organization.
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Detect the existence of fraud via financial and other data
analysis.
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Compute damages and losses due to fraud.
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Evaluate compliance with terms of agreements, contracts, etc.
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Track the existence and disposition of assets.
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Trace illicit funds.
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Locate hidden assets.
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Conduct royalty audits.
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Complete agreed-upon procedures targeted at specific areas of
concern.
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Conduct surprise audits.
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Develop controls and procedures to increase the likelihood
that fraud is detected quickly.
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Develop and implement systems and controls to prevent fraud
from happening again.
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Provide written reports of the results of our work.
If you feel that your organization is, has been a victim of
fraud, you need the services of qualified forensic accountants. Call
our office today for more information or a consultation.
