Determining Income With the IRS Expenditures Method

When the IRS believes a taxpayer has unreported income, they will use alternative methods to attempt to determine the true income. One of those methods is the Expenditures Method. Tracy Coenen explains the basic methodology in this video. Note that this method of calculating income can be used in a …

Investigating Large Data Sets

Complex financial investigations involve large sets of data, numerous accounts, multiple players, and lightning fast movements of money. Being able to accurately document these movements of money is the key to the financial portion of a case, whether it involves embezzlement, bribery, misconduct in office, money laundering, or divorce. Forensic …

Analytical Review of Financial Statements

When investigating fraud, I often find it useful to perform analytical review on the financial statements of a company. Even when management is certain that they know where the fraud occurred within the accounting system, analytical review can help identify unsual things about the numbers that may warrant further investigation. …

Asset Overstatement to Improve How a Company Looks

When a company is struggling, it is tempting to manipulate the financial statements to make things look better. Even when things are going well, management may want or need the company to look even better than it already does. Banks, investors, and other interested parties are looking at the financial …