In many cases, businesses need to ask not if fraud will happen but when. Instead of being prepared for eventualities, many businesses choose to ignore internal controls until it is too late, and something has already occurred.
In its 2018 Report to the Nation, the Association of Certified Fraud Examiners compiled data from a study of 2,690 cases of occupational fraud and concluded the following:
- Survey participants estimated that the typical organization loses 5% of its annual revenue to fraud.
- The median loss caused by the occupational fraud case in the study was $130,000.
- The frauds lasted a median of 16 months before being detected.
- 22% of cases caused a loss of more than $1 million.
- Small businesses lost almost twice as much per scheme to fraud.
Source: Association of Certified Fraud Examiners, Report to the Nation 2018 – Summary of Findings (www.acfe.com)
Fraud is real and too often it is aided by poor internal controls such as lack of segregation of duties, lack of oversight by management and by putting too much trust in an individual who has the opportunity, motivation and rationale to commit fraud.
The CJBS financial investigation and litigation support team is trained to detect fraud, uncover hidden assets, and provide due diligence services. Our goal is simple: maximize positive outcomes for our clients.
We offer the following forensic accounting services:
Litigation Support Services for:
- Shareholder disputes
- Business dissolutions
- Bankruptcy accounting
- Asset recovery and damage analysis
- Full Audit services
- Calculating economic damages & lost profits
- Preparation for deposing financial witnesses
Due Diligence Reviews:
- Operational and financial analyses
- Analytical reports
- Evidence collection
- Trend analysis
Risk Management and Internal Control Consulting:
- Full risk assessment
- Seminars and on-site training
We also specialize in the following areas:
- Accountant malpractice
- Breach of contract
- Corporate fraud and malfeasance
To learn more about the Forensic Accounting services available from CJBS, contact Larry Goldsmith.