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 »
Blog
Posts Categorized: Fraud Deterrence
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 »
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 »
Fraud Tales: Fraud Investigation Uncovers Medicare and Medicaid Fraud
Government payments to providers under the Medicare and Medicaid programs are based on an “honor billing system,” meaning it is up to providers to honestly and accurately bill the government for services or goods provided. Not surprisingly, fraud investigations routinely uncover fraudulent activities that cost the government billions of dollars each year. “As a forensic… Read more »
Fraud Tales: Fraud Investigation Reveals Fraudulent Junior Partner
The senior partner at an auto dealership was a successful businessman who owned multiple businesses. As a result, he relied heavily on his junior partner to act as the general manager of the dealership. With the dealership running smoothly and turning a profit, the senior partner had no reason to suspect anything was amiss until… Read more »
Fraud Investigations Identify Common Expense Reimbursement Schemes
Expense reimbursement fraud is one of the most common and pervasive types of fraud affecting companies today. While the amount stolen by any one individual is relatively low, fraud investigations have found that the sheer number of employees committing this type of fraud can translate into a significant loss for a company. “Many employees don’t… Read more »
Fraud Tales: Fraud Investigation Uncovers Theft in Auto Dealership
An auto dealership with a high volume of business established specific cash controls to assure that no car was delivered to a buyer until the dealership had received or accounted for all payments due from the sale. Despite the required checks and balances, a fraud investigation found that a senior salesman was able to misappropriate… Read more »
Fraud Tales: Fraud Investigation Uncover Inventory Control Weaknesses
The anti-fraud controls in place at a shipping supplies company were extensive and outwardly thorough. Incoming shipments were closely checked against the shipping manifest and outgoing shipments against the sales requisition that then became the invoice. The warehouse had an alarm to prevent break-ins. And the company conducted a detailed physical inventory at year-end to… Read more »
Fraud Tales: Fraud Investigation Reveals Fraud Scheme in Supplies Shipping
The Director of Operations at a large national financial services firm was very good at his job. Asked to cut costs, the Director recommended the company centralize its purchase of office supplies, a move he said would save the company more than $50,000 a year. Sure enough, during the first three years of the program,… Read more »
