Forensic Accounting and Fraud Examination
The Association of Certified Fraud Examiners in its 2016 annual “Report to the Nations” on occupational fraud and abuse concluded that the losses per organization was 5% of revenues for a total loss exceeding $6.3 billion. Asset misappropriation was the most common form of occupational fraud, occurring in more than 83% of cases, but causing the smallest median loss of $125,000. Financial statement fraud was on the other end of the spectrum, occurring in less than 10% of cases but causing a median loss of $975,000. Corruption cases fell in the middle, with 35.4% of cases and a median loss of $200,000.
Billing schemes and check tampering schemes were the most common forms of fraud categorized as misappropriation of assets. The average duration of a fraudulent activity was 18 months with financial losses rising exponentially as the frauds continued.
Financial statement fraud, while less frequent, caused significantly more damage with a median loss of $975,000.
All of the above mentioned losses were committed by employees?
AB WATERS, CPA, CFE offers the following services to help prevent, detect and deter fraudulent activity:
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Forensic accounting and fraud examination
Fraud examination, according to Joseph T. Wells, “is defined as the skills necessary to resolve allegations of fraud from inception to disposition; to obtain evidence, take statements and write reports; to testify to findings; and to assist in the detection and prevention of fraud. Fraud examination consists of specialized knowledge from four fields: accounting and auditing, investigation, law, and criminology.” Mr. Wells is the founder and chairman of the Association of Certified Fraud Examiners.
We have the accounting, auditing and investigative skills to bring occupational fraud cases to a final conclusion.
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Internal control programs
Internal fraud controls are designed to prevent, detect and/or deter fraudulent activity. AB Waters can assist in the design and implementation of a system of controls or assess your current system of controls and help implement additional controls, if needed.
