Services - Daum Valuation and Financial Services

FORENSIC ACCOUNTING INVESTIGATIONS

We understand that each situation requiring a forensic accounting investigation is unique. Our approach is to first understand the situation and tailor our procedures to match your needs. By doing this, we can provide efficient, targeted procedures that get you the information you need to move forward.
We get you the answers you need by:

Processing large amounts of data and summarize them in an understandable way.
Identify and present patterns of transactions that are outside of the normal course of business or are otherwise suspicious.
Analyze specific, unusual transactions to determine if these transactions are supported by source documents or other evidence.
Corroborate conclusions made regarding the valuation of a business or the quantum of guideline income.

The following are some examples of situations where we were able to bring clarity by completing a forensic accounting investigation:

Hidden assets – We examined the banking and business records of an individual in a matrimonial breakdown to assess whether assets and/or income were being hidden.
Compliance with agreements – We examined the accounting records of a company and summarized payments made to shareholders over a 10-year period to determine if the shareholders received distributed profits in accordance with the shareholders’ agreement.
Verification of income – We verified the income earned by a spouse, post-divorce by comparing accounting records to bank transactions.
Lifestyle assessment – We summarized banking and credit card information to present the spending patterns of spouses in a matrimonial matter.
Reasonability of transaction information – We investigated the performance of a business before and after a purchase and sale transaction to understand the reasons for changing performance. This was done to test the reasonability of information provided during the purchase and sale of the business.
Asset misappropriation – We reviewed the work of other experts related to the misappropriation of assets by employees and its impact on the value of the underlying business. This included several complex alleged schemes to misappropriate cash from the business.
Vouching of funds to sources – We summarized the sources and uses of funds in an alleged Ponzi scheme. This demonstrated that the client’s funds were largely sourced from deposits and not as a benefit of the Ponzi scheme.

Call 778-819-7028 or email us today if you have any question

Forensic accounting FAQs

Q – I suspect fraud, what should I do?: Discuss the matter with your legal counsel. They can provide guidance on the necessary steps to take. We recommend taking immediate steps to retain as much documentation as possible (accounting records, bank statements, credit card statements, and other source documents).
Q – What will happen during a forensic investigation?: Each situation is unique. We tailor our approach based on the specific situation. With you and your legal counsel, we form a plan together of what procedures we plan to execute and the purpose of those procedures. We keep you informed of our progress and highlight any changes or additional procedures that may be necessary as we progress through the engagement.
Q – Can you quickly tell me if fraud or other irregularities exist?: We generally cannot provide “quick” opinions on matters of fraud. We need to understand the accounting records and source documents to a reasonable extent before we can discuss what may or may not be happening in a situation.
Q – Will an investigation always definitively provide fraud or no fraud?: No. Often records are not complete. Further, cash transactions are often difficult to prove based on available documentation. While this is the case, our reports will outline the findings of our procedures as well as any limitations that may exist caused by a lack of documents. This can act to focus attention on areas of high risk or areas requiring further document disclosure that would provide valuable information to the courts.
Q – How much will a forensic investigation cost?: The cost will depend on the size and complexity of the investigation. We will determine the scope of the engagement with you and can provide an estimate of cost at that time. In forensic investigations, having access to electronic records in excel format can greatly reduce the time and cost. We bill based on the actual time incurred.