Forensic Accounting & Fraud

Forensic accounting and fraud services are often used in a reactionary mode after an incident has occurred. Who commits fraud? Generally fraud is committed by trusted, long-time employees and is discovered by accident. Many people commit fraud because of a personal situation; family health issues and addictions to drugs, alcohol, gambling or shopping are more common than greed.

Some signs of fraud include:

• Lack of Vacations
• General Ledger Adjustments
• Inventory or Receivable Swings
• No Separation from the Billing, Deposit or Bank Reconciliation Function

Other “opportunity” areas can be a lack of cash recorded on deposit slips, credit card usage or transmissions, and theft of consumer’s credit card information. Businesses with large inventories, those that accept cash, and those in which services can be given away are often at greater risk.

Our fraud services include:

• Examining the Potential for Fraud
• Measuring the Extent of a Loss
• Evaluating Damage Claims
• Identifying the Source of Losses
• Establishing Internal Control Processes & Policies
• Testing Employee Adherence to Policies
• Opinion Witness Testimony
• Company Management Team Presentations

Why Donovan CPAs and Advisors? We have a Certified Forensic Financial Analyst (CFFA) on staff. We can help you proactively implement programs to deter fraud and theft, as well as establish the dollar value of losses when problems have surfaced. One of the hidden benefits in fraud services is working with organizations by checking employee’s adherence to policies. Even if an employee is not stealing from the company, a lack of following established policies might be causing losses and creating inaccurate records and data.