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

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 […]

January 17, 2013 Accounting, Forensic Accounting Read more...

What are some signposts to look for to determine fraudulent financial reporting?

Your financial records and documents often are the places where fraudulent activity is covered up. What are some signposts to look for to determine fraudulent financial reporting?

Of the three types of occupational fraud, it’s not corruption or asset misappropriation, but fraudulent financial statements that have the potential to cause the greatest impact.

A monthly review of the company checking account and financial statements can reveal suspicious amounts or vendors.There are several ways financial statements can be manipulated, including:

Timing Differences […]

December 28, 2012 Forensic Accounting Read more...

How can e-mail, voicemail, GPS and other digital information be used in fraud cases?

Digital information such as e-mail, voicemail and GPS often seem to reveal key information, but how may these items be used in court?

One of the key benefits of having this type of information, first of all, is it can show intent. You can find out from emails what a person intended to do. One key point is there’s no such thing as an “accidental fraud.” Under the law it has to be intentional, so establishing intent can be […]

December 28, 2012 Accounting, Forensic Accounting Read more...

What would be a typical approach to a forensic accounting assignment?

Forensic accountants are called upon to many assignments where little is known at the beginning. What is the typical approach when handling a forensic accounting job?

The first thing we do in any such assignment is meet with the key people involved in the case and understand exactly what the project is – what is the problem, what are they looking for, what do they want us to find out for them?
The second thing we are likely to […]

December 28, 2012 Forensic Accounting Read more...

What are the most successful ways to detect and prevent workplace fraud?

Fraud in the workplace can be detected, but prevention of fraud is even more valuable. What are the most successful ways to detect and prevent workplace fraud?

Businesses of all sizes are at risk for fraudulent activity, especially due to more incentives and pressures for companies to outperform, and more financial hardships for employees to overcome than ever before. Even if your company has never experienced any type of fraud, the possibility should not be ignored.

Detecting workplace fraud involves review […]

December 19, 2012 Forensic Accounting, Human Resources, Payroll Audit Read more...

Implications of mobile technology on today’s digital forensic methods?

Mobile technology, social media, and cloud computing have radically altered our current digital forensic methods.  How have these methods been affected, and what other changes will these new technologies bring?

The easy and obvious answer is that these technologies have made an investigation much more complex.  It becomes more difficult to recover the data and to do the things we normally would do in an investigation.  It calls for some specialized expertise in working with an IT professional.

The opportunities though […]

December 19, 2012 Accounting, Forensic Accounting Read more...

What are key signs of financial asset misappropriation in divorce settlements?

There are often suspicions of financial asset misappropriation in divorce cases, but what are the signs of this possibility?

I think there are several key indicators that might come up:

One would be previously unknown assets. For instance, if you can discover a cash account or an investment portfolio or a piece of real estate that was unknown to the other spouse, that would be a sign of misappropriation.
Another indicator might be unexplained transactions, such as checks written to […]

December 19, 2012 Accounting, Forensic Accounting Read more...

What are the options for recovering lost money or prosecuting in a fraud investigation?

It’s always a goal to recover lost money in a fraud investigation, and sometimes a goal to prosecute.  What are your options for recovering money or prosecuting?

When it comes to prosecution, the decision falls to the government official as to whether the case is worth prosecuting.  Sometimes they don’t take a great interest in white collar crime; they’re much more interested in someone who walks into a convenience store with a gun.  If someone’s embezzling, they’re generally not as […]

December 1, 2012 Forensic Accounting Read more...

How do you choose the right forensic accountant for a case?

Forensic accountants have varying backgrounds and skillsets, so how do you select the appropriate one?

We could approach it from two angles. The first could be to someone who’s looking to hire a forensic accountant. The second would be, how would I approach it, assigning someone to a case.

Let’s start with the outside person. What you first want to consider is experience. Can the person demonstrate that they’ve been involved in this type of investigation for a while so they […]

November 28, 2012 Accounting, Forensic Accounting Read more...

(Don’t) Lie to Me: Detecting Lies and Deceit in Interviews

Alex Helfand, ENCE, Computer Forensic Specialist

Interviews are a key part of a fraud investigation, and often one of the first steps in the investigative process.  An effective interview can expose organizational weaknesses, identify employees who may be motivated to steal, and, of course, produce a confession from a guilty party.

Although it is difficult to tell if a person is lying during an interview, there are some behavioral indicators to watch out for which tend to indicate a lie or […]

November 26, 2012 Accounting, Forensic Accounting Read more...