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Fraud Investigations Identify Lesser Known Fraud Schemes

Employers generally are savvy about the more common types of fraud that plague businesses and may have enacted fraud controls and fraud deterrence programs to prevent them.  But fraud investigations have shown that equally savvy fraudsters know their employers often overlook lesser-known fraud schemes — an oversight that leaves them free to pursue fraudulent activity…. Read more »

Adjusting Executive Compensation in Business Valuations

Establishing the fair value of a business requires a business valuation expert to adjust the revenues and expenses of the business to reflect “normal” operations.  Non-recurring and unusual expenses and revenues are eliminated, and recurring expenses and revenues are adjusted to reflect amounts that would be incurred if the owners were “hypothetical” independent investors in… Read more »

Fraud Deterrence Measures Can Lessen Petty Cash Fraud

Petty cash fraud may seem, well, petty.  After all, your company keeps only a few dollars in the petty cash fund at any given time and it’s always secured in the company safe or otherwise locked up.  It’s hardly worth the effort of enacting fraud deterrence measures to protect petty cash, right?  You might be… Read more »

Fraud Investigations Identify Financial Statement Fraud As Costliest

The most expensive frauds in the business world don’t involve the theft of cash or other assets, but rather the falsification of financial statements.  Repeated fraud investigations have found that these financial statement frauds usually are perpetrated by or at the direction of senior management. “This is fraud at the very highest levels of a… Read more »

Damage Calculation and Expert Witnesses Testimony in Employment Cases

Attorneys often depend on forensic accountants to calculate damages in both wrongful termination and employment discrimination cases and subsequently to provide expert witness testimony in cases that make it to the courtroom. “Whether you are dealing with wrongful termination or employment discrimination, the methodology for calculating damages is similar,” said David Anderson, principal of David… Read more »

Fraud Deterrence Measures Combat Computer Hackers

Despite heightened awareness about hackers and increased expenditures for cyber security, major businesses and financial institutions continue to fall victim to hackers.  Businesses can bolster their fraud deterrence measures in this area by being aware of the non-computer system exploits that allow hackers to successfully attack computer systems and taking steps to prevent them. “Most… Read more »

Tales of Fixed Asset Fraud

Most asset misappropriation frauds are focused on cash, and maybe inventory.  However, frauds involving fixed assets, primarily equipment and furniture, are also prevalent. Accordingly, fraud deterrence and prevention programs also should address protecting fixed assets from fraud, said forensic accounting expert David Anderson of David Anderson & Associates, Certified Fraud Examiner in Philadelphia. Some of… Read more »

Business Valuation: How an Unprofitable Business Can Have Value

Uncovering value in an unprofitable business might seem to make as much sense as wringing water out of a rock, but – by putting forensic accounting principles to work – a knowledgeable business valuation expert can do just that. “Business valuators look to three primary methods for valuing a business – the Income Method, the… Read more »

Assure Timely Royalty Payments with Royalty Audits by Forensic Accountants

Have you or your clients licensed the use of intellectual property in return for royalty fees?  Are you or your clients franchisors who receive franchise fees from your franchisees?  If so, are you conducting royalty audits in a timely manner to assure that you are receiving the fees to which you are entitled?  If not,… Read more »

Fraud Investigations Reveal How to Stem Purchasing Department Fraud

Do you have a purchasing department employee who suddenly started taking expensive vacations, wearing expensive jewelry or driving an expensive new car?  There are lots of reasons why an employee might appear to be living beyond their means.  Perhaps the employee or their spouse came into an inheritance, won the lottery, received a sizeable insurance… Read more »

Employee-Driven Retail Fraud Continues Despite Fraud Deterrence Measures

Despite increasingly stringent fraud deterrence measures, fraudulent activity in retail operations such as stores and restaurants continues to pose a significant problem, with the retail industry estimating a loss of nearly $3.2 billion to fraud in 2014. “Technological improvements and greater oversight have made it more challenging for fraudsters to steal cash and inventory from… Read more »

Forensic Accountants Simplify the Most Complex Data for Jurors

Presenting financial information to a jury, especially in complex matters, can seem a nearly impossible task.  Most jurors have little or no understanding of financial statements or financial analysis, and introducing large amounts of data and complex spreadsheets can be mind boggling and intimidating.  But the job of a forensic accountant providing expert witness testimony… Read more »

Fraud Tales: Fraud Investigation Tracks Tiny Fraud that Grew

As fraudulent activity goes, it was a seemingly miniscule theft — a mere $2,000 pilfered decades ago.  Hardly worth raising an eyebrow.  But the case of Mark Jenkins is a prime example of how a seemingly innocuous case of fraud can mushroom into a major theft, requiring a forensic accountant to conduct a fraud investigation… Read more »