After more than 25 years conducting fraud investigations, I have learned a lot about fraudsters, their methods, and the companies they work for. Hotlines cut fraud losses in half. Anonymous reporting mechanisms like fraud hotlines decrease the cost of internal […]
In order to properly plan a fraud investigation, a fraud examiner needs to be able to ask good questions that extract valuable information about what needs to be done. The specific questions vary with each investigation, but the following are […]
Have you ever wanted or needed to do a background check on an owner or executive of a company? If you’re considering investing in a public or private company, you may want to find out information on the people who […]
Companies engaged in financial statement fraud sometimes use creative phrases to legitimize or cover up what they’re doing. Examples include: Aggressive accounting – We’re following the rules, but pushing the limits to make the financial statements look as good as […]
Companies rely heavily on reports about questionable behavior from employees, customers, vendors, or other outside parties. Tips are the most common way that fraud is detected by companies, so any credible tip should be taken very seriously. How does a […]
If you’re familiar with the process of a financial statement audit, you know all about audit work programs. They’re basically the checklists and guides that auditors use to make sure they follow all the required steps for auditing the financial […]
The manipulation of a company’s financial statements does not occur as often as asset misappropriation schemes like payroll fraud, check kiting, or inventory theft. And the losses from financial statement fraud aren’t readily apparent to most people. When money is […]
When an IRS auditor or criminal investigator suspects that a taxpayer has unreported sources of income, he or she looks for ways to calculate that unreported income. One way is the net worth method of proof. Forensic accountants and fraud […]
After management becomes aware of a potential fraud and decides that a fraud investigation is necessary, the process of creating a team, mapping the investigation plan, and requesting information begins. An organized approach is the best way to ensure that […]
After a fraud investigator is done with her work and has issued the expert report, company management and retained attorneys must decide what to do with the information presented. If the case is already in litigation, the use of the […]
