Category Archives: Careers in Forensic Accounting

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...

Fraud Prevention: Trust is Not an Internal Control

Alex Helfand, ENCE

Of course you trust your employees.  Trust is essential in order for day-to-day operations to properly function.  However, even if you feel that you have every reason to completely trust your staff, you still need internal controls.  Especially in a difficult economy, if a need exists and the opportunity arises, even the most unlikely perpetrator can become a guilty party.

Why You Need More than Trust
No business owners want to believe their employees will steal.  Do you find […]

November 1, 2012 Accounting, Forensic Accounting Read more...

Protect Yourself Against Investment Fraud: Regularly Review Your Account Statements

John Merchant, CPA, CFE

Do you have an investment account at a bank or with a brokerage firm?  And, if so, do you carefully study the transactions in your account, either online or when you receive a paper statement?  If not, you should, regardless of how much you trust your banker or investment firm.

Unfortunately, many people simply check their balance to see if they have gained or lost value and ignore the details of transactions.  Recently, a PNC Bank investment […]

October 18, 2012 Accounting, Audit, Forensic Accounting Read more...

Don’t Provide Benefits to Ghosts – Updated Public Death Master File Disclosures

Linh Crider, CPA, CFE

For large benefit plans, ensuring that only eligible members receive benefits can be a challenge.  In order to update their records, many plans utilize the Public Death Master File, a listing of all deaths reported to the Social Security Administration (SSA) from numerous sources.  These sources include family members, funeral homes, hospitals, states, Federal agencies, postal authorities and financial institutions.

However, the SSA determined last year that it can no longer disclose protected state records.  This change […]

October 17, 2012 Accounting, Benefit Plan Accounting, Forensic Accounting Read more...

Controller Takes a Bite Out of DC Area Restaurant with Embezzlement Scheme

Alex Helfand, ENCE, Computer Forensic Specialist

Whether it is for a business lunch or a quick bite with friends, local DC restaurant Clyde’s is a popular dining option.  Unfortunately, the restaurant has become a fraud statistic as their former Controller recently pled guilty to embezzlement.

Nancy Preston, Clyde’s Controller of 30 years, recently pled guilty to embezzling $647,547 over the span of a decade.  She used these embezzled funds to pay personal credit card bills and also contracted with a Clyde’s […]

October 3, 2012 Accounting, Forensic Accounting Read more...

Preventing Fraud with Surprise Audits

Alex Helfand, ENCE, Computer Forensic Specialist

Surprise audits are an important, but often overlooked fraud prevention mechanism.  Many unscrupulous employees anticipate the regular audit and cover their tracks accordingly, but a surprise audit can expose the usually hidden graft.   Additionally, the simple threat of a potential audit can deter fraudulent employee behavior.

These audits often cover the same areas as a routine audit, but in more depth.  Areas of focus in a surprise audit can include:

Accounts Payable.  A common occupational fraud […]

September 26, 2012 Accounting, Audit, Forensic Accounting Read more...

What to Do if You Suspect Fraud in Your Organization

Alex Helfand, ENCE, Computer Forensic Specialist

As an executive or business owner, do you know what to do if you suspect that fraud is occurring in your organization?  Perhaps you have spotted some unusual employee behavior or lifestyle habits that don’t seem quite right, or you have found irregularities on reconciliations and the explanations that your employees provide are vague and confusing.

By bringing in forensic experts and consulting with legal counsel, you can stop fraud in its tracks.  And, by […]

August 22, 2012 Accounting, Forensic Accounting Read more...

Using Tips and Hotlines to Detect Corporate Fraud

John Merchant, CPA, CFE

The Association of Certified Fraud Examiners (ACFE) recently published its 2012 Report to the Nations on Occupational Fraud and Abuse.  This publication reports the findings from an analysis of more than 1,300 cases of occupational fraud that were reported to the ACFE by Certified Fraud Examiners (CFEs) around the world.  Consistent with information gathered by the ACFE in previous studies, this report found that the initial detection of occupational fraud was most often due not to […]

July 17, 2012 Accounting, Forensic Accounting Read more...

Small Business Fraud Prevention: Bringing in the Reigns on the Company Credit Card

Alex Helfand, ENCE, Computer Forensic Specialist

Company credit cards offer the convenience and simplicity of documenting multiple expenses on one itemized bill.  However, without the proper controls in place, credit cards can also open the doors of your organization to occupational fraud.  Fictitious expense schemes can lead to significant losses for organizations; employees can use the card for personal expenditures or can submit a separate expense report for the same expenses that appear on the credit card statement in hopes […]

June 1, 2012 Accounting, Forensic Accounting Read more...

Detecting Financial Statement Fraud: Part 2

Alex Helfand, ENCE, Computer Forensic Specialist

In the previous post , I reviewed common motivations for committing financial statement fraud, as well as several common ways that financial statements can be manipulated.  This post covers additional misrepresentations and how forensic accountants identify them.
Concealed Liabilities and Expenses: Concealed liabilities can include warranties attached to sales, underreported Incurred-but-not-Reported (IBNR) health benefits, or simple omission of liabilities.  Expenses can be concealed by capitalization that spreads the expense out over a number of years […]

May 21, 2012 Accounting, Audit, Forensic Accounting Read more...