Where is Fraud Likely? – Part 3: Kiting

Lawrence R. Beebe, CPA, Principal

In this series, we are discussing specific areas where fraud might be likely to occur within an organization and the steps management can take to detect and prevent fraud.

Kiting Isn’t Child’s Play

Kiting is a very old scheme and is not as likely to happen as it once was, but any entity with multiple bank accounts should be aware of the possibility.  For kiting to work, an individual must have complete authority over two or more […]

February 5, 2010 Accounting, Audit, Forensic Accounting Read more...

THE RETURN OF THE REQUIRED MINIMUM DISTRIBUTION

Brian Wynne, CPA

Because of the economic downturn in late 2008, the federal government allowed taxpayers to skip required minimum distributions from their IRAs and qualified retirement plans for 2009 only.  The purpose of the suspension was to avoid forcing taxpayers to sell stock while at its weakest if the taxpayer didn’t need the money.  As we move into the New Year, don’t forget that these required distributions are now back in place.

Required Minimum Distributions (RMDs) are payments that must […]

February 3, 2010 Accounting, Tax Read more...

Online Banking Security and Fraud Prevention

Posting by Lawrence R. Beebe, CPA

Our friends at EagleBank, a local community business bank with offices in Maryland, Virginia and Washington, DC, are reminding their customers of the importance of keeping up-to-date with internet and e-mail best practices in order to decrease the chance of fraudulent activity.  They have provided the following list of recommendations for those who utilize ACH and wire transfers:

1. Provide the bank with a dollar limit for all individual ACH and wire transfer transactions.

2. Provide the bank […]

February 2, 2010 Accounting, Forensic Accounting Read more...

YOUR TAX PREPARER IS A FRIEND

Individual tax return preparation is in many ways like putting together a jig saw puzzle without  seeing the picture on the box. Unless the preparer has intimate knowledge of the taxpayer’s situation, he/she must rely solely on the information provided and ask questions when items appear to be missing. A picture of the tax situation, given this information and answers to those questions will soon emerge. Will  it be the correct picture? That will depend on completeness of the […]

January 28, 2010 Accounting, Tax Read more...

OLD COUNTRY VS. NEW COUNTRY

For those confused by the question, we are challenged every day by the prospect of future taxation.  The word from every source seems to be there is only one direction for taxes and that is up.  Coupled with severely crimped revenues from the Great Recession and federal government outlays that are attempting to prime the private sector pump, this conclusion appears inexorably on the horizon.

The fiscal crisis appears to be gaining greater traction as an issue both financially and […]

January 27, 2010 Accounting, Tax Read more...

We Are Family: How Family Businesses Have Been Hanging Tough During the Economic Crisis

Posting by Jacqueline M. Thompson, CPA, Principal

Around the world, businesses have been handling the global economic crisis in a variety of ways, including downsizing, changing management, cutting bonuses, acquiring other businesses or being acquired, even closing down all together.  There is an element to the family business that is quite different from a non-family business, and it seems in these tough times, being family can be an advantage.

Positive Steps Everyone Can Take

There are of course some things every business […]

January 19, 2010 Family Owned Businesses Read more...

Where is Fraud Likely? – Part 2: Accounts Receivable Lapping

Lawrence R. Beebe, CPA,

In this series, we are discussing specific areas where fraud might be likely to occur within an organization and the steps management can take to detect and prevent fraud.

A Lack of Segregation of Duties Can Lead to Lapping

As long as entities have had accounts receivable lapping has taken place.  Lapping occurs when someone in the organization steals accounts receivable payments by diverting them.  The person committing the fraud then uses a subsequent payment from a different […]

January 18, 2010 Accounting, Forensic Accounting Read more...

All On Board! Getting Your Family Business Started with a Board of Directors

Posting by Joel C. Susco, CPA, Principal

Talk to any family business owners about their board of directors, and you’ll most likely get a wide variety of questions in lieu of answers.  How large should the board be?  Should the board even exist?  Is a board necessary when the founder or the founder’s child is running the company?  Should a board include non-family members?  Why is that?

Why Sometimes It’s Good to be Board

Some family businesses are good at what they […]

January 15, 2010 Accounting, Family Owned Businesses Read more...

Tax Relief Tools in Time for Your Next Family Business Tax Returns

Posting by Geoffrey D. Brown, CPA, Principal

A CPA down to my soul, I decided to focus on a few tax items for my blog post this month – I just can’t help myself.  There were a couple tax relief items for businesses that were passed into law last year and may be of some interest to family businesses.

Nothing but Net – Net Operating Loss Carryback

The first tax change is for Net Operating Loss Carryback.  This measure, to get a […]

January 11, 2010 Family Owned Businesses, Tax Read more...

Small Time PonziScheme Costs Investors $15 Million

John Merchant, CPA ,  CFE

Have you ever heard of Marcia Sladich?  Unless you live in the vicinity of New York City you probably haven’t.  And, perhaps that is lucky for you.  The New York Times reports that Ms. Sladich has been convicted of running what might be called a mini Ponzi scheme.  It can be called mini because her scheme was far less devastating than the scheme originally perpetrated by Charles Ponzi and certainly miniature in relation to the […]

January 10, 2010 Accounting, Forensic Accounting Read more...