Performing a formal financial audit annually is thought by many to be the most effective means of fraud detection and fraud deterrence. It’s not. Only three percent of all fraud is detected by a formal financial audit. In fact, more than twice as many are discovered by accident than by formal audit. So what is… Read more »
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Posts Categorized: Forensic Accounting
Fraud Investigation Identifies Three Types of Fraud
Fraud investigations worldwide reveal that asset misappropriation, corruption and financial statement fraud are the three main types of fraud, according to the Association of Certified Fraud Examiners (ACFE). The ACFE identified these three key types of fraud in its 2014 Report to the Nations, the results of a global survey conducted biennially to study the… Read more »
Why You Can’t Afford Not to Invest in Fraud Deterrence
Think a fraud deterrence program is too pricey? Consider this. In its biennial global survey, the Association of Certified Fraud Examiners (ACFE) found that the typical organization loses five percent of its revenues to fraudulent activities each year. That conclusion was a key finding in the ACFE’s 2014 Report to the Nations, the results of… Read more »
Understanding “The Fraud Triangle” Can Aid in Fraud Deterrence
Fraud deterrence is undoubtedly a complex issue. But there is one seemingly simple approach that can help you keep fraud out of your business or organization: Understanding “The Fraud Triangle” and using it to your advantage. “‘The Fraud Triangle’ is what forensic accountants talk about when they refer to the three elements that are necessary… Read more »
Financial Statements Can Be Invaluable in Fraud Deterrence
Financial statements issued by companies, government entities or organizations can be invaluable tools in fraud deterrence. But too often, the people in charge don’t bother to read these statements on a regular basis, and those who do often don’t understand what they are reading. Understanding your financial statements, and knowing what to look for, are… Read more »
A Disaster Recovery Plan Can Help your Business Survive a Disaster
Disasters are in the news every day. Tornadoes. Hurricanes. Sinkholes. Floods. Fires. As a matter of practice, you’ve probably insured your home, your business, your health and your very life in the event disaster strikes. But what do you actually do when the immediate threat has passed? Do you have a disaster recovery plan in… Read more »
Fraud Deterrence Starts with You
As a reasonable and intelligent business owner who employs reasonable and intelligent employees, you might think fraud deterrence programs are unnecessary. It’s a given that everyone knows they’re not supposed to steal from their employer, right? And they also understand that as the boss, you get certain perks to which they are not entitled. It’s… Read more »
Business Valuation Reveals What Your Business is Really Worth
Something has come up and you need to know what your business is worth. Do you need the advice of a business valuation expert to figure this out or can you do it on your own? The business down the street sold for $10 million, the former owner claims. Your business is about half the… Read more »
Fraud Investigations Reveal Trusted Employees Often at Fault
It’s in the headlines nearly every day — stories about fraud investigations that reveal the theft of hundreds of thousands and even millions of dollars from local businesses, government agencies and charitable organizations. And who’s to blame? Too often the culprit is a long-time trusted employee. “The person responsible for defrauding the company frequently is… Read more »
The Impact of Different Conventions for Projecting Future Damages, Part I
When calculating damages for future periods – such as for lost profits, loss of income in wrongful death cases, etc. – experts are often charged with expressing an opinion as to what would happen in the future but for the wrongful act. These projections typically rely upon either industry trends or on the historical operating… Read more »
The Impact of Different Conventions for Projecting Future Damages, Part II
The valuation of damages is designed to put the harmed party back into the same economic position that would have existed if the harm had not occurred. The most difficult part of that equation is to project the economic conditions one would have expected without the harm. An analysis of historical results is often used… Read more »
Creating an Effective FCPA/UKBA Compliance Program
Last month I discussed the potential risks that a company faces under the U.S. Foreign Corrupt Practices Act of 1977 (FCPA) and the U.K. Bribery Act of 2010 (UKBA) when conducting business in foreign countries. This month, I’ll present the key components of an effective FCPA/UKBA compliance program. There are seven key components to an… Read more »
Valuation Issues to Consider During Healthcare Acquisition Negotiations
In response to the Affordable Care Act, more hospitals and large physician groups are buying physician practices to control referral sources, service quality and operating costs. This increase in practice acquisitions is expected to continue for the foreseeable future. Because of this, it is more important than ever for both acquirers and acquirees to consider… Read more »
