Forensic Accounting:
Your Secret Weapon Against Fraud
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Is your company getting ripped off?
Unfortunately, the answer is probably yes. But you'll be even more
surprised by the culprit. These days, it's not a machine gun-toting
mobster or sinister competitor that you have to fear the most. One of
your own employees, armed with a computer or a color copier, can do
more damage than Bonnie and Clyde ever dreamed of.
A recent study by the Association of
Certified Fraud Examiners showed the average organization loses about
6 percent of its total annual revenue to fraud and abuse committed by
its own employees; that's an average of $9 a day per employee!
How can you fight back? You need a
secret weapon that you can pull out of your back pocket when you
suspect fraud. You need someone who understands the motivation and
methods of these criminals, who can uncover even the most deeply
hidden
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fraud, then support you in rooting it out. You need the services of
a Forensic Accountant. Forensic
Accountant? It sounds like the punch line to: "What do you get when
you cross Quincy with a calculator?" But nothing could be more serious
in helping you protect the assets and reputation of your firm. A
Forensic Accountant is a highly experienced auditor who is specially
trained in the investigation of fraud. At times, the job is closer to
a private detective than to an accountant. Like a modern-day Sherlock
Holmes, a Forensic Accountant sniffs out suspicious items on your
financial report, documents the analysis, helps you understand the
"big picture" implications of the findings, determines your risk
exposure, and presents credible courtroom testimony based on the
investigation.
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Why "Forensic?" Forensic refers to the
level of detail at which Forensic Accountants investigate and the
legal application of their findings. We all know the value of forensic
medicine in solving a murder case. Forensic Accountants apply similar
scientific techniques to solve cases of fraud.
Technology: the chosen weapon of the modern thief.
Technology has enabled practitioners of
fraud to grow more sophisticated in their methods, and the sums of
money to grow more vast. Who hasn't heard the news stories of rogue
traders who cover up losses of millions of dollars by manipulating the
computer systems meant to monitor them? Fortunately, the same
technology that aids the modern thief invariably leaves a tell-tale
trail of data. This trail, when properly tracked, will take the thief
down. A Forensic Accountant knows where to find these clues,
(continued on page 2)
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Kessler &
Associates
Raid Major
Food
Counterfeiter
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Michael G. Kessler & Associates
exposed a major food counterfeiting and repackaging operation in
Brooklyn, NY. Kessler's investigators, accountants and computer
experts, accompanied by U.S. Marshals and representatives of the law
firm of Brown and Fox, seized product, counterfeit packaging materials
and computer and financial records from eight locations.
The raids were the end result of an
in-depth investigation by Kessler. After the seizure, Kessler's team
of Forensic Accountants pored over the suspect company's records and
documented that the owners of these companies were netting millions
of dollars per year through these illegal activities.
(continued on page 4)
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