What is forensic accounting?
Simply put, forensic accounting is the methodical seeking of evidence supporting fraudulent accounting with the aim of obscuring wrongdoing, or misappropriation of assets. Suspected fraud can be both discovered by your internal accounting staff, pointed out by a vendor, or during a random audit.
Some other interesting cases you can read up on include a scam by William D. Lomow of former disposal company Orinda-Moraga in San Juan Capistrano and his associate – they set up sham companies and billed the district they operated in for their operation, funneling the money to themselves. Another case involved Allen Stanford and James Davis of the Stanford Financial Group of Companies, who over almost a decade misappropriated approximately $1.6 billion via fraudulent reporting.
Our approach to forensic accounting
Planning the investigation, the team will determine the best method to uncover evidence related to the what, where, why, who and how of the suspected fraud:
- What: Is this a case of fraud, or an unintentional consequence of accounting errors.
- Where: The location(s) that money was misappropriated from and to.
- Why: The potential motive for fraud.
- Who: The person or other entity at fault.
- How: The way that the fraud was committed.
Our team will work discreetly within your organization to uncover enough material so that either you as the client or the courts can make an informed decision about any financial misconduct. Our investigative skills and methods include:
- Full transaction, cash, and asset audits.
- Using computer forensics software to identify deviations in your financial data.
- Interviewing key team members and others who may be involved in or adjacent to fraudulent activity.
- Utilizing key observational skills unique to forensics accountants, such as identifying potential perpetrators through the identification of unusual purchases or vacations.
- Conducting tests on your processes and checks and balances to identify possible avenues for fraud, and provide recommendations on how to fix them.
Our team then compiles a full report that details our methodology and a summary of evidence uncovered in the investigation, to satisfy the requirements of you as the client or litigation support. We tailor versions of the report to satisfy both financial experts as well as laypersons who may not have financial backgrounds and make use of easy-to-interpret graphs, charts, and spreadsheets.
Engage GCG to get to the bottom of your financial discrepancies
Whether suspected fraud has already been identified or you require a third-party audit conducted of your finances and accounting, Greenough Group has the expertise to get it done thoroughly.
If you’re looking for an accounting firm to ensure you can get the answers you need as soon as possible, start a conversation with us today and let us know how we can help.
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