Forensic and Fraud Services Archives - Cooper, Travis & Company, PLC

What is the cost of a forensic accounting or economic damages analysis?

Our fees are typically based on hourly rates. The fees ultimately charged will depend on the case’s complexity, the timing of the required analysis, and the purpose of the engagement. In non-litigated engagements, we can offer fixed-fee arrangements under certain circumstances. Don’t hesitate to contact us for specific information regarding our fee structure or to receive a proposal for a particular engagement.

What possible fraud red flags should a business owner be alert to?

In many cases, the business owner or management may have suspicions that fraud or accounting irregularities are happening. Some of the more frequent observations that lead to these hunches are:

There is no clear separation of accounting duties.
Employees with control or access to cash and accounting records do not take vacations or time off
There are significant transactions with related parties, suppliers, or subcontractors who are unknown or unfamiliar.
There is a distinct difference between an employee’s income and lifestyle.
Significant and frequent adjustments are made to the accounting records using journal entries.

Our firm can provide a review of your company’s internal controls to make changes that would lessen the opportunities for fraud to occur.

Why would my auditor not discover fraud and financial manipulation during the annual audit of my company’s financial statements?

The difference between the public expectation of the purposes and objectives of an audit and the CPA’s responsibilities under Generally Accepted Auditing Standards, aka GAAS, is referred to as the expectation gap. Financial statement audits are not explicitly designed to detect fraud but to express an opinion on the financial statements as a whole. However, should fraud be discovered during a financial statement audit, the CPA will notify the company’s management of the findings. The client engagement letter and audit opinion state that the object of the audit is to obtain reasonable assurance that the financial statements are free of material misstatement, not the detection of fraud.

Who uses fraud and forensic services?

Forensic accountants are retained by law firms, corporations, banks, government agencies, insurance companies, and other organizations to analyze, interpret, summarize, and present complex financial and business-related issues clearly and concisely.

What is forensic accounting?

Forensic accounting, also called investigative accounting, is a detailed examination and analysis of documents for use as evidence in a court of law. The term forensic accounting can include the following areas:

Fraud detection, documentation, and presentation of the report.
Calculation of economic damages.
Tracing income and assets, usually to find hidden assets or income (customarily performed for divorce and bankruptcy cases).
Reconstruction of financial statements that may have been destroyed or manipulated.