{"id":5537,"date":"2010-12-17T06:00:48","date_gmt":"2010-12-17T12:00:48","guid":{"rendered":"http:\/\/www.sequenceinc.com\/fraudfiles\/?p=5537"},"modified":"2011-08-18T00:01:31","modified_gmt":"2011-08-18T05:01:31","slug":"financial-analysis-in-fcpa-cases","status":"publish","type":"post","link":"https:\/\/www.sequenceinc.com\/fraudfiles\/financial-analysis-in-fcpa-cases\/","title":{"rendered":"Financial Analysis in FCPA Cases"},"content":{"rendered":"

This week I recorded a podcast for the International Association for Asset Recovery (IAAR)<\/a>, which is accessible on the IAAR site<\/a>. We talked a bit about where financial investigations are going, and how I am using technology to complete these investigations quicker and more effectively.<\/p>\n

David Quinones, host of the podcast and Editorial Director for IAAR, asked how a private sector forensic accountant fits into a Foreign Corrupt Practices Act (FCPA) case.<\/p>\n

I talked about two ways that forensic accountants and fraud investigators can be utilized:\"\"<\/p>\n

Investigating potential FCPA violations<\/strong> – When companies companies suspect that they may have an FCPA problem, they are required to initiate an internal investigation<\/a> to determine what really happened.<\/p>\n

The forensic accountant can examine the books and records in conjunction with bank records to see where money really went. If there is a discrepancy between what the bank says and what the accounting records say, there is usually a problem. For example, if the accounting records show a $25,000 payment to ABC Company for raw materials, but the check copy shows the $25,000 was really paid to John Smith, this is a red flag. Why have the accounting records concealed the true payee? This type of investigation is necessary to fully examine allegations of FCPA violations.<\/p>\n

Forensic accountants are also necessary when complex transactions are involved. FCPA violations involving payments are not always so linear. There is often a complex web of payments and money transfers between a variety of individuals, entities, and accounts. The financial investigation requires expertise in unraveling these situations and tracing the money to prove fraud or malfeasance.<\/p>\n

Part of a corporate compliance program<\/strong> – Companies must be proactive in preventing and detecting FCPA violations, and their compliance program is the answer to this. Whether a company has created a compliance program voluntarily, or is mandated to do so because of previous FCPA violations, a forensic accountant is again an important piece of the puzzle.\u00a0 The forensic accountant can come in on a regular basis, such as once or twice a year, to do testing and examination of accounting and banking records to determine whether any further violations or red flags of fraud exist.<\/p>\n

More information on the Sequence Forensic Accounting System can be found here<\/a>, and you can see me demonstrate some of the results of this system in a webcast: Follow the Money\u2013Using Technology to Find Fraud or Defend Financial Investigations<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

This week I recorded a podcast for the International Association for Asset Recovery (IAAR), which is accessible on the IAAR site. We talked a bit about where financial investigations are going, and how I am using technology to complete these […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[811,810],"tags":[1021,989,1032,991],"class_list":["post-5537","post","type-post","status-publish","format-standard","hentry","category-fcpa","category-financial-investigations","tag-compliance-program","tag-fcpa-compliance","tag-fcpa-investiaton","tag-internal-investigation"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p6Z0e-1rj","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/5537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/comments?post=5537"}],"version-history":[{"count":0,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/5537\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/media?parent=5537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/categories?post=5537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/tags?post=5537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}