In conducting investigations, a forensic accountant often will analyze dates and time to determine if fraud or minority shareholder oppression may be present. Date and time analysis can be used for a variety of purposes, explained David Anderson, a Philadelphia forensic accountant and principal of David Anderson & Associates, a Philadelphia forensic accounting firm that… Read more »
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Posts Tagged: fraud investigation
Tricks of the Trade – How A Forensic Accountant Can Use Names, Addresses and Phone Numbers
A forensic accountant can use names, addresses and phone numbers when investigating potential minority shareholder suppression cases and when conducting a fraud investigation. In minority shareholder suppression cases, a forensic accountant will look for employees, subcontractors and vendors having the same last name as that of the majority shareholders, explained David Anderson, a Philadelphia forensic… Read more »
Tricks of the Trade: Benford’s Law Can Serve as Red Flag in Fraud Investigations
The business of forensic accounting is — most of the time — a very precise, highly detailed process. It might surprise you then to learn that one of the tricks of the trade forensic accountants use in fraud investigation stems from the very inexact science of probabilities, specifically, Benford’s Law. “Frank Benford was a physicist… Read more »
Forensic Accountant Advises Caution in Interpreting Financial Statements
Recipients of company financial statements that are “associated” with Accounting Firms often assume that the financial statements are accurate, fairly presented, have undergone a rigorous examination by the Accounting Firm, and are not subject to fraud or misstatement. While that may be true in some cases, it very often is an inaccurate assumption that can… Read more »
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 »
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 »
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 »
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 »
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 »
