When Should You Retain a  Forensic Accountant?          Presented             To   Reach Point Alliance         June 9, 20...
Summary of Topics Definition of Forensic Accounting Services Traits and Characteristics of Forensic Accountants Example...
Definition of Forensic Accounting ServicesForensic accounting is the use of professional accounting skills inmatters invol...
Forensic Accounting Skills and Knowledge                          Core CPA                          Skills                ...
Forensic Accounting Skills and KnowledgeCore                         Fundamental                   SpecializedCPA Skills  ...
Traits and Characteristics                       of Forensic AccountantsSource: AICPA, FVS Section                        ...
Core Skills of Forensic AccountantsSource: AICPA, FVS Section                 JE Moore
Example Tasks Performed by Forensic Accountants  Interpret documents and business records  Reconstruct accounting record...
Who Hires Forensic Accountants? Lawyers Judges Investors Private/Public Companies (Executive Team; Board of   Director...
Stages of a Forensic Accounting Engagement    Planning and preparation    Information gathering and preservation    Dis...
Example Forensic Accounting Assignments        The CFO                   Business Contract                Internal Corpora...
Q&AJeff E. Moore, CPA/CFF, CFE, CIRA        JE Moore, CPA, P.C.      Forensic and Managerial Accounting           1120 Mon...
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When Should You Retain a Forensic Accountant?

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When Should You Retain a Forensic Accountant?

  1. 1. When Should You Retain a Forensic Accountant? Presented To Reach Point Alliance June 9, 2011 JE Moore
  2. 2. Summary of Topics Definition of Forensic Accounting Services Traits and Characteristics of Forensic Accountants Example Tasks Performed by Forensic Accountants Who Hires Forensic Accountants? Stages of a Forensic Accounting Engagement Example Forensic Accounting Assignments Q&A JE Moore
  3. 3. Definition of Forensic Accounting ServicesForensic accounting is the use of professional accounting skills inmatters involving potential or actual civil or criminal litigation,including, but not limited to the following:  Generally accepted accounting and audit principles  The determination of lost profits, income, assets, or damages  Evaluation of internal controls  Embezzlement and other fraud  Public corruption and business ethics  Other matters involving accounting expertise in the legal system or relating to financial investigations JE Moore
  4. 4. Forensic Accounting Skills and Knowledge Core CPA Skills Fundamental Forensic Knowledge Specialized Forensic Knowledge JE Moore
  5. 5. Forensic Accounting Skills and KnowledgeCore Fundamental SpecializedCPA Skills Forensic Knowledge Forensic Knowledge• Technical accounting • Laws, courts and dispute • Financial statement knowledge (GAAP) resolution misrepresentation• Technical auditing • Information gathering and • Fraud prevention, knowledge (GAAS) preservation detection and response• General business and • Discovery • Bankruptcy, insolvency industry knowledge • Reporting, experts and and reorganization• General knowledge of testimony • Computer forensic business law and ethics analysis• Objectivity/independence • Economic damages • Valuation • Family law JE Moore
  6. 6. Traits and Characteristics of Forensic AccountantsSource: AICPA, FVS Section JE Moore
  7. 7. Core Skills of Forensic AccountantsSource: AICPA, FVS Section JE Moore
  8. 8. Example Tasks Performed by Forensic Accountants Interpret documents and business records Reconstruct accounting records Document and quantify losses Trace transactions and flow of funds Assist with asset and business recovery efforts Conduct interviews and obtain written statements Assist with discovery, deposition, and trial preparation Prepare for and assist with arbitration/mediation Prepare exhibits for settlement and/or trial Expert witness reports and oral testimony Work with law enforcement agencies and assist in criminal prosecutions JE Moore
  9. 9. Who Hires Forensic Accountants? Lawyers Judges Investors Private/Public Companies (Executive Team; Board of Directors; Ethics Compliance Team; Internal Audit) Banks and Insurance Companies Non-Profit Organizations Government (Schools; Fire/Police; GBI, FBI) Individuals JE Moore
  10. 10. Stages of a Forensic Accounting Engagement  Planning and preparation  Information gathering and preservation  Discovery  Reporting, experts and testimony  Fees and billing JE Moore
  11. 11. Example Forensic Accounting Assignments The CFO Business Contract Internal Corporate Embezzler Dispute Investigation• Retained by $15 mil/yr Co, • Retained by attorney for • Retained by CFO of foreign- then by outside counsel former President of Co. owned $130 mil/yr company• Fraudulent disbursements • $6 mil/yr U.S. subsidiary of • $1.5 mil discrepancy• Payroll tax fraud German parent company surfaced late in YE audit• Financial statement • Disputed calculations of • Suspect died misrepresentation executive bonus plan • Reconstructive accounting• Extensive financial analysis • Involved inventory and other • Investigative interviews• Litigation support GAAP issues • Internal control• $1.2 mil civil judgment • Litigation support led to recommendations successful settlement • Ongoing P.T. CFO services• Criminal trial pending JE Moore
  12. 12. Q&AJeff E. Moore, CPA/CFF, CFE, CIRA JE Moore, CPA, P.C. Forensic and Managerial Accounting 1120 Monarch Plaza 3414 Peachtree Road, N.E. Atlanta, GA 30326 404-264-1071 jeff.moore@jemoore.com www.jemoore.com JE Moore blog: Forensic Accounting Today http://jemoore.typepad.com/blog/ JE Moore

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