September 29, 2015
Alan Winters, Advisory Services Partner, Featured in Commerce Article, "Forensic Accounting Puts the "Bad Guys" Out of Business."
By Miles Z. Epstein
Fraud and abuse costs U.S. organizations more than $400 billion annually, according to the Association of Certified Fraud Examiners. The majority of corporate fraud cases involve accounting schemes designed to deceive investors, auditors and analysts about the true financial condition of a corporation. Thanks to forensic accountants, the white collar criminal gets caught "by the numbers," as the following examples illustrate.
Our client was a doctor, a solo practitioner who suspected that something was amiss with his income statement at the end of the year. He engaged us to do a forensic audit, and we determined that his office manager was forging his signature on insurance payment checks and depositing them to a bank account she had opened in his name for that purpose.