Forensic Auditing Blog

Five Ways Forensic Accountants Can Make Workplace Fraud Settlements Easier

bradley@bbcpa.com (Natalie Bradley) — Mon, 20 May 2013 12:04:31 GMT

Posting by Alex Helfand, EnCE
P: 301.272.6022 | E: helfand@bbcpa.com

It’s in the local newspapers every week – an employee finally gets caught committing white collar fraud at his or her workplace. Worse yet, the employee is found out years after the fraud began, and typically is a trusted team member with no prior criminal record to give an inkling that this could be possible. Some losses are incalculable, such as trust; others are hard to determine – the perpetrator often has had direct and occasionally sole access to many company functions and records, using several advanced technological methods to hide the crime from immediate detection.

Divorce Checklist: Financial Information and Documents that Can Aid a Settlement

bradley@bbcpa.com (Natalie Bradley) — Tue, 23 Apr 2013 12:17:04 GMT

Posting by Joel Susco, CPA
P: 301.272.6050 | E: susco@bbcpa.com

According to the Women’s Institute for Financial Education, each year, nearly 2.8 million men and women go through the emotional and financial trauma of divorce. And, financial survival is one of the most common concerns.

One of the biggest mistakes divorcing couples make is being in the dark about their finances. If one spouse in the marriage has historically been the financial decision maker and records keeper, he/she may have an unfair advantage when it comes time to settle the financial issues in a divorce. Though it’s underhanded and illegal, sometimes a spouse may try to move or hide assets without his or her partner’s knowledge. He or she may try to hide cash in a safety deposit box, under-report income or over-report expenses and/or hand off property to family and friends with the intention of getting it back once the divorce settlement is finalized. If any of these activities are suspected, it’s critical to engage a qualified forensic accountant and Certified Fraud Examiner to investigate the financial trail and assist with financial fraud detection. In fact, the use of forensic accounting in divorce proceedings is becoming increasingly more common.

Payments Fraud Prevention: Protecting Your Organization from Check and Card Fraud

bradley@bbcpa.com (Natalie Bradley) — Tue, 09 Apr 2013 13:22:29 GMT

Posting by Linh T. Crider, CPA, CFE
P: 301.272.6004 | E: crider@bbcpa.com

Are your organization’s payment processing systems vulnerable to fraud? Recent research shows that check fraud continues to be a persistent problem for companies, and credit card fraud is on the rise. According to the 2013 AFP Payments Fraud and Control Survey, 61% of the companies surveyed had experienced some type of payments fraud. Without the proper controls in place, your business may be at risk to financial losses suffered from these types of scams.

Identity Theft Prosecution: Three Ways a Forensic Accountant Can Help

bradley@bbcpa.com (Natalie Bradley) — Fri, 29 Mar 2013 12:35:53 GMT

Posting by Tara McKinney, CPA, CFE
P: 301.272.6018 | E: mckinney@bbcpa.com

Identity theft and related identity fraud is a widespread problem due to today’s modern digital environment, which has armed thieves with new ways to silently steal large amounts of personal data from anywhere in the world. Credit card fraud, identity theft and online embezzlement scams are increasingly in the news, and we frequently hear about personal information being stolen due to credit card skimming, and websites and other company data being hacked.

Don't Become a Victim of Fraud and Identity Theft

bradley@bbcpa.com (Natalie Bradley) — Mon, 18 Mar 2013 13:33:49 GMT

Posting by John Merchant, CPA, CFE, CFF
P: 301.272.6030 | E: merchant@bbcpa.com

Fraud and identity theft have become a serious and ever-increasing problem. No one wants to become a victim and there are certain basics rules to follow to avoid being victimized. Here are eleven simple ways you can protect yourself:

Are You Paying Ghosts? Five Steps to Prevent Payroll Fraud

bradley@bbcpa.com (Natalie Bradley) — Mon, 04 Mar 2013 13:53:02 GMT

Posting by Joel Susco, CPA
P: 301.272.6050 | E: susco@bbcpa.com

For many companies, payroll is one of the areas where they are most vulnerable to fraud. The Association of Certified Fraud Examiners (ACFE) reports that payroll fraud accounts for almost 10% of fraud cases and costs organizations an average of $48,000 when it occurs.

Think you’re too small for payroll fraud? The ACFE notes that payroll schemes are reported twice as often in smaller organizations (those with few than 100 employees). If your payroll is taken care of in-house, it is essential to review your payroll processes and controls to ensure your company won’t fall prey to one of the most common – and complex – forms of fraud.

How a Forensic Accountant can aid in Divorce Settlements

aizzo@marketri.com (Amy Izzo) — Thu, 21 Feb 2013 20:34:25 GMT

Posting by Alex Helfand, EnCE
P: 301.272.6022 | E: helfand@bbcpa.com

Complicated financial issues often come into play during a divorce settlement, and even more so in high net worth cases. It’s common for one spouse to assume the money management role in a marriage, and rarely do both spouses have equal knowledge of their financial affairs. So when a spouse is suspicious of unreported income or hidden assets, it can be critical for legal counsel to work with a qualified forensic accountant to aid in a divorce settlement. The forensic accountant will perform an in-depth forensic analysis to detect hidden, transferred or deferred income.

Don't Become a Victim: Protecting Yourself from Income Tax-Related Fraud

bradley@bbcpa.com (Natalie Bradley) — Wed, 13 Feb 2013 14:51:47 GMT

Posting by John Merchant, CPA, CFE, CFF
P: 301.272.6030 | E: merchant@bbcpa.com

As the 2013 income tax filing season gets underway, taxpayers are beginning to gather information in anticipation of filing income tax returns. Identity thieves have begun to do the same thing. The difference is identity thieves are not gathering their own information. They are gathering information to allow them to file returns using stolen identities.

Appropriate Due Diligence May Reduce Fraud Losses

bradley@bbcpa.com (Natalie Bradley) — Thu, 24 Jan 2013 19:36:47 GMT

Posting by John Merchant, CPA, CFE, CFF
P: 301.272.6030 | E: merchant@bbcpa.com

On Friday January 18, 2013, Caterpillar, Inc. (Caterpillar), one of the world’s largest construction equipment manufacturers, announced that it would take a write-down of assets due to discovery of deliberate misconduct in the accounting for a subsidiary acquired in 2012. The subsidiary was acquired at a cost of approximately $653 million and the write-down will be approximately $580 million.

5 Ways an Expert Witness in Accounting Can Bolster Your Fraud Case (Video)

bradley@bbcpa.com (Natalie Bradley) — Thu, 17 Jan 2013 14:51:27 GMT

Posting by Larry Beebe, CPA
P: 301.272.6025 | E: beebe@bbcpa.com

Since the recent economic downturn, individuals as well as businesses of all sizes have been facing immense financial pressures. So, it’s no wonder that the number of fraudulent financial activities and schemes is on the rise. An estimated 20 percent of U.S. businesses are subjected to fraud incidents each year, translating to a loss of over $600 billion.

The overall financial climate, coupled with advancements in technology over the past few years have translated to even more opportunities for computer fraudsters to wreak financial havoc. Despite efforts to strengthen security systems, computer fraud is a huge problem that still plagues corporate America.

When companies need to measure and recover damages caused by such fraudulent activity, forensic accountants often step in to assist in the investigation, measure the damages and provide litigation support to inside and outside counsel. During legal proceedings, a forensic accounting expert can help solidify a fraud case by analyzing the evidence and providing detailed findings or even help to prevent fraud from happening in the first place. For example, a forensic accountant can explain the complexities of how a particular computer program could have been manipulated to allow fraud to pass through a company’s system.