Forensic & Fraud Examinations
A forensic and fraud examination is a highly specialized and methodical process, distinctly different from a routine financial audit. While an audit primarily seeks to verify the accuracy and fairness of financial information, a forensic examination is a deep dive, typically triggered by a strong suspicion or a confirmed allegation of financial impropriety. Think of it less like a regular check-up and more like a detective story where the numbers are the clues.
Its primary purpose goes far beyond simply identifying discrepancies; it aims to:
​
Establish the Facts
This isn't just about finding an error. It's about determining if financial misconduct has occurred, identifying who was involved, understanding how it was perpetrated, and uncovering why it happened. This includes identifying specific schemes like embezzlement, asset misappropriation, vendor fraud, or financial statement manipulation. We piece together the puzzle to reveal the full picture of the alleged wrongdoing.
​
Quantify the Financial Impact
A crucial element is to accurately calculate the precise amount of financial loss resulting from the misconduct. This often involves intricate calculations to determine direct losses, lost profits, and even potential recovery amounts. This quantification is vital for legal claims, insurance recoveries, and restitution orders.
​
Preserve a Chain of Custody
In forensic accounting, every piece of evidence must be collected, handled, and stored in a legally sound manner. This meticulous process, known as establishing a chain of custody, ensures that the evidence hasn't been tampered with and will be admissible and credible in a court of law. Without a proper chain of custody, even strong evidence can be dismissed.
​
Provide Finding Report for Remediation and Legal Purposes
The culmination of the examination involves preparing a comprehensive and unbiased report of findings. This detailed report serves a dual purpose: it presents the financial evidence in a clear, defensible manner for potential legal actions, insurance claims, or regulatory submissions and it also guides the organization in implementing robust internal controls and process improvements to prevent future occurrences (remediation).
​
Our detailed approach of an in-depth forensic accounting examination is designed to be rigorous, legally defensible, and comprehensive. It's a structured approach to solving a financial mystery, ensuring that all findings are based on solid evidence and can withstand legal scrutiny.