In its 2010 Report to the Nation, the Association of Certified Fraud Examiners compiled data from a study of 1,843 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 our study was $160,000.
- The frauds lasted a median of 18 months before being detected.
- More than 85% of the fraudsters in their study had never been previously charged or convicted for a fraud-related offense.
- Asset misappropriation schemes are the most common type of fraud and they represent 90% of the cases in the ACFE’s survey.
Source: Association of Certified Fraud Examiners, Report to the Nation 2010 – Summary o f Findings (www.acfe.com)
The sad fact is that fraud is real. Too often, it is aided by poor internal controls such as lack of segregation of duties, lack of oversight by management and too much trust put in an individual who has the opportunity, motivation and rationale to commit fraud.
Our forensic accounting practice utilizes the expertise of professionals who have obtained a Certified Fraud Examiner (CFE) designation from the Association of Certified Fraud Examiners (ACFE) as well as a Certification in Financial Forensics (CFF) from the American Institute of Certified Public Accountants (AICPA). If you suspect a financial fraud has been committed, we have experience in detecting, quantifying and reporting on fraudulent activity within organizations and we will work directly with you and/or your attorney to ensure an effective investigation is conducted.
We also work with organizations to help develop internal controls in order to prevent fraud. Although no system of internal controls can provide absolute safeguards against irregular activities, we can help you put in place practices, policies and procedures to minimize the occurrence of financial fraud in your organization.
In addition to forensic services, we can also provide expertise in the area of business valuation and litigation support. Our professionals are licensed Certified Valuation Analysts (CVA’s) through the National Association of Certified Valuators and Analysts (NACVA), and accredited in business valuation through the AICPA. Please contact Larry D. Dodson at email@example.com for more information on our Forensic Accounting, Fraud Investigation, Business Valuation and Litigation Support practice areas.
- Fraud investigation
- Forensic accounting services
- Valuation services
- Damage calculation
- Expert witness testimony