SlideShare a Scribd company logo
1 of 23
FORENSIC ACCOUNTING
AND VALUATION (FVS)
SERVICES
April 12, 2012
Zachary Reichenbach, CPA
William O’Donnell
Overview
• Background on Ellin & Tucker, Chartered
• Overview of Forensic and Valuation Services
  • Forensic Accounting
  • Litigation and Business Valuation
• How to Get Into FVS
• Our Backgrounds and Experiences
• Questions
Who are we?
 • Mid-Atlantic regional firm established in 1946
  • Over 65 years of service
 • More than 100 employees
 • Four locations
  • Headquartered in Baltimore

   Baltimore   Washington, DC   Frederick       Belcamp




                                            3
What services do we provide?
• Services                    • Industries
  • Accounting and Auditing      • Automotive
  • Bankruptcy                   • Construction
  • Business & Management        • Employee Benefit Plans
    Consulting                   • Health Care
  • Business Valuation           • Hi-tech/Biotech
  • Damages & Litigation         • Law Firms
  • Forensic Accounting &        • Manufacturing
    Fraud Investigation          • Non-Profits
  • Mergers & Acquisitions
                                 • Professional Services
  • Tax Service
                                 • Printing
                                 • Private Investment Funds
                                 • Real Estate
                                 • Retail
                                 • Wholesale Distributions
The Forensic and Valuation Services Group:
• Advices clients and provides expert testimony in domestic and
 international litigation matters
    • Cases have involved significant damage amounts


• Performs numerous investigations of national and international
 investment schemes, bank embezzlements and fraud in a variety
 of industries

• Analyzes complex financial transactions providing counsel,
 partnerships and other business entities with the answers they
 need to resolve legal, regulatory and general business disputes

• Respond timely and communicate financial information clearly and
 concisely in a courtroom setting
Typical FVS Casework
                   Fraud
Business       Investigation/        Domestic
Valuations      Examination          Disputes       Damages                  Other

Sale          Deception        Hidden Assets   Commercial        Loss  from
Purchase      Intentional      Hidden Income   Patent             Shutdown of
Shareholder   Manipulation of                    Infringement        Business
 Disputes      Records                            Personal Injury    Operations
                                                  Wrongful          Fire losses

                                                   Death             Misappropriation

                                                  Wrongful           of Funds
                                                   Termination       Breach of Contracts

                                                                     Transaction Analysis

                                                                     Asset Tracing over
                                                                     Time




                                                                 6
Who engages the FVS Group?

• Public and Private Entities
• US and International
• Attorneys
• CPA Firms
• Banking Institutions
• Trust and Wealth Managers
• Insurance Companies
• Government and Law Enforcement Agencies
Forensic Accounting
Definition of Forensic Accounting
• The term Forensic Accountant refers to an accountant
 who performs an orderly
 analysis, investigation, inquiry, test, inspection or
 examination in an attempt to obtain the truth and develop
 an expert opinion.

• What does this mean?
  • Applies accounting skills to legal matters in a wide range of
      issues
  •   Addresses a past event
  •   Uses financial information
  •   Produces information about finances
  •   For use in judicial proceedings
Roles of Forensic Accountants
                        Expert Witness
                         for Litigation
                        (e.g. Damages)


                                           Expert Witness
Transitional Business                        for Valuation
        Advice                            (e.g. Transaction)



                          Forensic
                         Accounting




                                            Event
         Fraud
                                           Analysis
Fraud, Forensic and Anti-Trust
• Civil fraud investigations          • Asset and transaction tracing

• Criminal fraud investigations       • Accountant malpractice
                                      • Director and officer negligence
• Securities fraud investigations
                                       and self dealing
• Money laundering                    • Contract compliance
• Transaction tracing                 • Investment advisor malpractice
• Internal corporate investigations   • Corporate veil piercing

• Sarbanes-Oxley compliance           • Application of accounting
                                       principles
• Misappropriation of corporate
                                      • Accounting controls and
 assets and corporate
                                       procedures reviews
 opportunities
                                      • Regulatory compliance and tax
                                       evasion
Why are Forensic Accountants needed?
• Fraud prevention
  • Examine current internal controls for weaknesses
  • Implement changes to strengthen internal controls
• Suspicion of fraud
  • Investigate any allegations of fraud
• Fraud has already occurred
  • Determine the extent of the loss
  • Follow the paper trail and expose how the fraud occurred
  • Testify in court
• Litigation support
  • Business valuations
  • Calculation of loss and damages
  • Estimate any unreported/over-reported income
Litigation and Business
        Valuation
Litigation Support
• Commercial Litigation Services include
  assisting legal counsel and their clients with
  commercial disputes and litigation at every
  stage of the litigation process
• Commercial Damages
 • Calculation of Lost Profits
 • Calculation of Loss in Value
Commercial/IP Litigation & Bankruptcy
Services
• Discovery and Fact Finding   • Patent infringement

• Damage Analysis and          • Trademark infringement
 Quantification
                               • Trade secret misappropriation
• Settlement Negotiations or
 Mediation                     • Copyright infringement

• Expert Reports and Expert    • Trade dress
 Witness Testimony
                               • Bankruptcy Analysis,
• Lost Profits                  Investigation, Turn-Around,
                                and Restructuring Support
• Loss of Business Value

• Increased Cost Claims
Business Valuation Services
• Valuations of closely held business interests including
 corporations, partnerships, and limited liability companies
• Valuations of securities and fractional interests including debt, preferred
 stock, SAR’s, and restricted publicly held stock
• Valuations of intangible assets and intellectual property

• Valuations of stock options, warrants, and stock grants

• Valuations of ESOP interests

• Valuations for recapitalization and freeze transactions

• Fairness opinions

• Fair value determination for financial statement purposes
How to Get Into FVS and
   Gain Experience
Skills Required
                       Accounting
                         Skills




        Legal Skills
                       FVS          Finance
                                     Skills
                       Skills


                       Economic
                         Skills
Where to Start?
• Accounting vs. Finance Backgrounds
  • Accounting Background
   • Auditing experience
   • Understanding of financial statements
   • Understanding of financial analysis
   • Workpapers and supporting documents
 • Finance Background
   • Financial Analyst Experience
   • Understanding the macro and micro level economic factors
   • Understanding financial markets
   • Understanding of cash flow
   • Risk and return analysis
   • Time value of money
What is an Auditor? What is a Forensic
Accountant?

Auditor                        Forensic Accountant
• An independent third-party   • An accountant who performs
 who examines and verifies a    an orderly analysis,
 Company’s financial and        investigation, inquiry, test,
 accounting records as well
 as supporting documents to     inspection or examination in
 express an opinion on the      an attempt to obtain the
 Company’s financial            truth and develop an expert
 statements                     opinion
• Auditor’s report provides
 credibility to a Company’s
 financial statement
Designations and Certifications:
 Experience, education and professional competence of
 the forensic accountant is crucial for the proper
 management of an engagement

• Certified Public Accountant (CPA)
• Chartered Financial Analyst (CFA)
• Certified Forensic Financial Analyst (CFFA)
• Certified Fraud Examiner (CFE)
• Tax Degree (MST)
• Courtroom Experience
• Written and Verbal Communication Skills
• Ongoing Continuing Professional Education
Our Experiences and
   Backgrounds
Questions

More Related Content

What's hot

PRESENTATION OF ADVANCED AUDITING
PRESENTATION OF ADVANCED AUDITINGPRESENTATION OF ADVANCED AUDITING
PRESENTATION OF ADVANCED AUDITINGAmna Abrar
 
Forensic accounting
Forensic accountingForensic accounting
Forensic accountingruquia shah
 
Fraud Risk and Control
Fraud Risk and ControlFraud Risk and Control
Fraud Risk and ControlWeaverCPAs
 
Entire forensic accounting project
Entire forensic accounting projectEntire forensic accounting project
Entire forensic accounting projectavinash mathias
 
Forensic accounting ppt (2)
Forensic accounting ppt (2)Forensic accounting ppt (2)
Forensic accounting ppt (2)Shriya Gupta
 
Fraud Investigation
Fraud InvestigationFraud Investigation
Fraud InvestigationSalih Islam
 
Customer Due Diligence Part 1 slides.pptx
Customer Due Diligence Part 1 slides.pptxCustomer Due Diligence Part 1 slides.pptx
Customer Due Diligence Part 1 slides.pptxSiniTizhe
 
Fraud Investigation Process And Procedures
Fraud Investigation Process And ProceduresFraud Investigation Process And Procedures
Fraud Investigation Process And ProceduresVeriti Consulting LLC
 
Anti Money Laundering - CDD & KYC
Anti Money Laundering - CDD & KYCAnti Money Laundering - CDD & KYC
Anti Money Laundering - CDD & KYCBesart Qerimi
 
Anti-money laundering presentation
Anti-money laundering presentationAnti-money laundering presentation
Anti-money laundering presentationElias Mose
 

What's hot (20)

Forensic accounting
Forensic accountingForensic accounting
Forensic accounting
 
PRESENTATION OF ADVANCED AUDITING
PRESENTATION OF ADVANCED AUDITINGPRESENTATION OF ADVANCED AUDITING
PRESENTATION OF ADVANCED AUDITING
 
IMPLEMENTATION OF FORENSIC ACCOUNTING ON FRAUD DETECTION: CASE STUDY OF LAGOS...
IMPLEMENTATION OF FORENSIC ACCOUNTING ON FRAUD DETECTION: CASE STUDY OF LAGOS...IMPLEMENTATION OF FORENSIC ACCOUNTING ON FRAUD DETECTION: CASE STUDY OF LAGOS...
IMPLEMENTATION OF FORENSIC ACCOUNTING ON FRAUD DETECTION: CASE STUDY OF LAGOS...
 
Fraud risk management
Fraud risk managementFraud risk management
Fraud risk management
 
Forensic accounting
Forensic accountingForensic accounting
Forensic accounting
 
Fraud Risk and Control
Fraud Risk and ControlFraud Risk and Control
Fraud Risk and Control
 
Entire forensic accounting project
Entire forensic accounting projectEntire forensic accounting project
Entire forensic accounting project
 
Forensic accounting ppt (2)
Forensic accounting ppt (2)Forensic accounting ppt (2)
Forensic accounting ppt (2)
 
Fraud Investigation
Fraud InvestigationFraud Investigation
Fraud Investigation
 
Forensic audit
Forensic auditForensic audit
Forensic audit
 
Customer Due Diligence Part 1 slides.pptx
Customer Due Diligence Part 1 slides.pptxCustomer Due Diligence Part 1 slides.pptx
Customer Due Diligence Part 1 slides.pptx
 
Fraud Investigation Process And Procedures
Fraud Investigation Process And ProceduresFraud Investigation Process And Procedures
Fraud Investigation Process And Procedures
 
Presentation on corporate frauds
Presentation on corporate fraudsPresentation on corporate frauds
Presentation on corporate frauds
 
Introduction to Forensic Accounting
Introduction to Forensic AccountingIntroduction to Forensic Accounting
Introduction to Forensic Accounting
 
Anti Money Laundering - CDD & KYC
Anti Money Laundering - CDD & KYCAnti Money Laundering - CDD & KYC
Anti Money Laundering - CDD & KYC
 
Chapter 3 vouching
Chapter 3 vouchingChapter 3 vouching
Chapter 3 vouching
 
Investigation and forensic audit in a computerized work environment
Investigation and forensic audit in a computerized work environmentInvestigation and forensic audit in a computerized work environment
Investigation and forensic audit in a computerized work environment
 
Anti-money laundering presentation
Anti-money laundering presentationAnti-money laundering presentation
Anti-money laundering presentation
 
Who Commits Fraud
Who Commits Fraud   Who Commits Fraud
Who Commits Fraud
 
General Overview of forensic accounting and forensic audit
General Overview of forensic accounting and forensic auditGeneral Overview of forensic accounting and forensic audit
General Overview of forensic accounting and forensic audit
 

Viewers also liked

A project report on Forensic Accounting and Auditing
A project report on Forensic Accounting and AuditingA project report on Forensic Accounting and Auditing
A project report on Forensic Accounting and AuditingDannyNaik
 
Current Issues in Accounting
Current Issues in AccountingCurrent Issues in Accounting
Current Issues in AccountingNazir Ahmed Shaon
 
Midterm Sociology Study Guide
Midterm Sociology Study GuideMidterm Sociology Study Guide
Midterm Sociology Study Guideshoetzlein
 
Mobile App Tracking - How it Works
Mobile App Tracking - How it WorksMobile App Tracking - How it Works
Mobile App Tracking - How it WorksMobileAppTracking
 
Scrum in Practice
Scrum in PracticeScrum in Practice
Scrum in PracticeNaresh Jain
 
Ops 571 free final exam sg 2014
Ops 571  free final exam sg 2014Ops 571  free final exam sg 2014
Ops 571 free final exam sg 2014Rogue Phoenix
 
Web Based Fleet Management System
Web Based Fleet Management SystemWeb Based Fleet Management System
Web Based Fleet Management SystemVasil Yordanov
 
Pulsatile Drug Delivery System
Pulsatile Drug Delivery SystemPulsatile Drug Delivery System
Pulsatile Drug Delivery Systemoptimpharma
 
Identity and Access Management Reference Architecture for Cloud Computing
Identity and Access Management Reference Architecture for Cloud ComputingIdentity and Access Management Reference Architecture for Cloud Computing
Identity and Access Management Reference Architecture for Cloud ComputingJohn Bauer
 
Industry analysis of soft drinks industry
Industry analysis of soft drinks industryIndustry analysis of soft drinks industry
Industry analysis of soft drinks industryHEMA SANKAR
 
Best steam power plant
Best steam power plant Best steam power plant
Best steam power plant Enamul Khan
 
Basic concepts of QA and QC
Basic concepts of QA and QCBasic concepts of QA and QC
Basic concepts of QA and QCGargi Nanda
 
Positioning and radiographic anatomy of the skull
Positioning and radiographic anatomy of the skullPositioning and radiographic anatomy of the skull
Positioning and radiographic anatomy of the skullmr_koky
 
Software Defined Data Center: The Intersection of Networking and Storage
Software Defined Data Center: The Intersection of Networking and StorageSoftware Defined Data Center: The Intersection of Networking and Storage
Software Defined Data Center: The Intersection of Networking and StorageEMC
 
10 important factors to consider before starting your
10 important factors to consider before starting your10 important factors to consider before starting your
10 important factors to consider before starting yourRon Romero
 
The software Implementation Process
The software Implementation ProcessThe software Implementation Process
The software Implementation Processrthompson604
 
Test Automation Framework Designs
Test Automation Framework DesignsTest Automation Framework Designs
Test Automation Framework DesignsSauce Labs
 
内容组织
内容组织内容组织
内容组织flydream
 

Viewers also liked (20)

A project report on Forensic Accounting and Auditing
A project report on Forensic Accounting and AuditingA project report on Forensic Accounting and Auditing
A project report on Forensic Accounting and Auditing
 
Current Issues in Accounting
Current Issues in AccountingCurrent Issues in Accounting
Current Issues in Accounting
 
Midterm Sociology Study Guide
Midterm Sociology Study GuideMidterm Sociology Study Guide
Midterm Sociology Study Guide
 
Mobile App Tracking - How it Works
Mobile App Tracking - How it WorksMobile App Tracking - How it Works
Mobile App Tracking - How it Works
 
Scrum in Practice
Scrum in PracticeScrum in Practice
Scrum in Practice
 
Ops 571 free final exam sg 2014
Ops 571  free final exam sg 2014Ops 571  free final exam sg 2014
Ops 571 free final exam sg 2014
 
Web Based Fleet Management System
Web Based Fleet Management SystemWeb Based Fleet Management System
Web Based Fleet Management System
 
Pulsatile Drug Delivery System
Pulsatile Drug Delivery SystemPulsatile Drug Delivery System
Pulsatile Drug Delivery System
 
Identity and Access Management Reference Architecture for Cloud Computing
Identity and Access Management Reference Architecture for Cloud ComputingIdentity and Access Management Reference Architecture for Cloud Computing
Identity and Access Management Reference Architecture for Cloud Computing
 
Industry analysis of soft drinks industry
Industry analysis of soft drinks industryIndustry analysis of soft drinks industry
Industry analysis of soft drinks industry
 
Best steam power plant
Best steam power plant Best steam power plant
Best steam power plant
 
Basic concepts of QA and QC
Basic concepts of QA and QCBasic concepts of QA and QC
Basic concepts of QA and QC
 
ocular drug delivery systems
ocular drug delivery systemsocular drug delivery systems
ocular drug delivery systems
 
Building a STRATEGIC PLAN for an Educational Institution
Building a STRATEGIC PLAN for an Educational InstitutionBuilding a STRATEGIC PLAN for an Educational Institution
Building a STRATEGIC PLAN for an Educational Institution
 
Positioning and radiographic anatomy of the skull
Positioning and radiographic anatomy of the skullPositioning and radiographic anatomy of the skull
Positioning and radiographic anatomy of the skull
 
Software Defined Data Center: The Intersection of Networking and Storage
Software Defined Data Center: The Intersection of Networking and StorageSoftware Defined Data Center: The Intersection of Networking and Storage
Software Defined Data Center: The Intersection of Networking and Storage
 
10 important factors to consider before starting your
10 important factors to consider before starting your10 important factors to consider before starting your
10 important factors to consider before starting your
 
The software Implementation Process
The software Implementation ProcessThe software Implementation Process
The software Implementation Process
 
Test Automation Framework Designs
Test Automation Framework DesignsTest Automation Framework Designs
Test Automation Framework Designs
 
内容组织
内容组织内容组织
内容组织
 

Similar to Forensic Accounting Topics and Issues

2010.03 Linked In Presentation
2010.03   Linked In Presentation2010.03   Linked In Presentation
2010.03 Linked In Presentationgrogers184
 
Citrin Cooperman's Valuation Advisory Services
Citrin Cooperman's Valuation Advisory ServicesCitrin Cooperman's Valuation Advisory Services
Citrin Cooperman's Valuation Advisory ServicesCitrin Cooperman
 
Citrin Cooperman's Bankruptcy Litigation Services
Citrin Cooperman's Bankruptcy Litigation ServicesCitrin Cooperman's Bankruptcy Litigation Services
Citrin Cooperman's Bankruptcy Litigation ServicesCitrin Cooperman
 
The Forensics Frontier
The Forensics FrontierThe Forensics Frontier
The Forensics Frontierwhbrown5
 
Forensic Accounting
Forensic AccountingForensic Accounting
Forensic AccountingMikeRosten
 
Legal Due Diligence: Integrating the Legal and Business Parts of the Process
Legal Due Diligence: Integrating the Legal and Business Parts of the ProcessLegal Due Diligence: Integrating the Legal and Business Parts of the Process
Legal Due Diligence: Integrating the Legal and Business Parts of the ProcessNow Dentons
 
Fraud risk management lahore oct 15
Fraud risk management lahore oct 15Fraud risk management lahore oct 15
Fraud risk management lahore oct 15Tahir Abbas
 
Forensic Accounting Scope
Forensic Accounting ScopeForensic Accounting Scope
Forensic Accounting Scopeinfantemiliya
 
Forensic Accounting- Introduction
Forensic Accounting- IntroductionForensic Accounting- Introduction
Forensic Accounting- Introductioninfantemiliya
 
MasterSnacks Cryptocurrency: Operational and Internal Considerations for Comp...
MasterSnacks Cryptocurrency: Operational and Internal Considerations for Comp...MasterSnacks Cryptocurrency: Operational and Internal Considerations for Comp...
MasterSnacks Cryptocurrency: Operational and Internal Considerations for Comp...Citrin Cooperman
 
Forensic Accounting – How To Uncover Fraud Jan 2012
Forensic Accounting – How To Uncover Fraud Jan 2012Forensic Accounting – How To Uncover Fraud Jan 2012
Forensic Accounting – How To Uncover Fraud Jan 2012Hermerding
 
Data mining and Forensic Audit
Data mining and Forensic AuditData mining and Forensic Audit
Data mining and Forensic AuditDhruv Seth
 
Kothari Auditors and Accountants - Company Profile
Kothari Auditors and Accountants - Company ProfileKothari Auditors and Accountants - Company Profile
Kothari Auditors and Accountants - Company Profilekaasmm
 
Contemporary role of cs
Contemporary role of csContemporary role of cs
Contemporary role of csDhaval Ramani
 
Taming the Dragon- Secrets of Due Diligence (Nelson Gray)
Taming the Dragon- Secrets of Due Diligence (Nelson Gray)Taming the Dragon- Secrets of Due Diligence (Nelson Gray)
Taming the Dragon- Secrets of Due Diligence (Nelson Gray)connectestonia
 
Using a Forensic CPA for Lawyers
Using a Forensic CPA for LawyersUsing a Forensic CPA for Lawyers
Using a Forensic CPA for LawyersSkoda Minotti
 

Similar to Forensic Accounting Topics and Issues (20)

2010.03 Linked In Presentation
2010.03   Linked In Presentation2010.03   Linked In Presentation
2010.03 Linked In Presentation
 
Citrin Cooperman's Valuation Advisory Services
Citrin Cooperman's Valuation Advisory ServicesCitrin Cooperman's Valuation Advisory Services
Citrin Cooperman's Valuation Advisory Services
 
Citrin Cooperman's Bankruptcy Litigation Services
Citrin Cooperman's Bankruptcy Litigation ServicesCitrin Cooperman's Bankruptcy Litigation Services
Citrin Cooperman's Bankruptcy Litigation Services
 
MPI-Overview-Brochure
MPI-Overview-BrochureMPI-Overview-Brochure
MPI-Overview-Brochure
 
The Forensics Frontier
The Forensics FrontierThe Forensics Frontier
The Forensics Frontier
 
Forensic Accounting
Forensic AccountingForensic Accounting
Forensic Accounting
 
Legal Due Diligence: Integrating the Legal and Business Parts of the Process
Legal Due Diligence: Integrating the Legal and Business Parts of the ProcessLegal Due Diligence: Integrating the Legal and Business Parts of the Process
Legal Due Diligence: Integrating the Legal and Business Parts of the Process
 
R&P Practice Areas
R&P Practice AreasR&P Practice Areas
R&P Practice Areas
 
Fraud risk management lahore oct 15
Fraud risk management lahore oct 15Fraud risk management lahore oct 15
Fraud risk management lahore oct 15
 
Forensic Accounting Scope
Forensic Accounting ScopeForensic Accounting Scope
Forensic Accounting Scope
 
Merchant Banking Brochure
Merchant Banking BrochureMerchant Banking Brochure
Merchant Banking Brochure
 
Forensic Accounting- Introduction
Forensic Accounting- IntroductionForensic Accounting- Introduction
Forensic Accounting- Introduction
 
MasterSnacks Cryptocurrency: Operational and Internal Considerations for Comp...
MasterSnacks Cryptocurrency: Operational and Internal Considerations for Comp...MasterSnacks Cryptocurrency: Operational and Internal Considerations for Comp...
MasterSnacks Cryptocurrency: Operational and Internal Considerations for Comp...
 
Forensic Accounting – How To Uncover Fraud Jan 2012
Forensic Accounting – How To Uncover Fraud Jan 2012Forensic Accounting – How To Uncover Fraud Jan 2012
Forensic Accounting – How To Uncover Fraud Jan 2012
 
Data mining and Forensic Audit
Data mining and Forensic AuditData mining and Forensic Audit
Data mining and Forensic Audit
 
Kothari Auditors and Accountants - Company Profile
Kothari Auditors and Accountants - Company ProfileKothari Auditors and Accountants - Company Profile
Kothari Auditors and Accountants - Company Profile
 
Contemporary role of cs
Contemporary role of csContemporary role of cs
Contemporary role of cs
 
Taming the Dragon- Secrets of Due Diligence (Nelson Gray)
Taming the Dragon- Secrets of Due Diligence (Nelson Gray)Taming the Dragon- Secrets of Due Diligence (Nelson Gray)
Taming the Dragon- Secrets of Due Diligence (Nelson Gray)
 
Using a Forensic CPA for Lawyers
Using a Forensic CPA for LawyersUsing a Forensic CPA for Lawyers
Using a Forensic CPA for Lawyers
 
C Miinds Template2
C Miinds   Template2C Miinds   Template2
C Miinds Template2
 

Forensic Accounting Topics and Issues

  • 1. FORENSIC ACCOUNTING AND VALUATION (FVS) SERVICES April 12, 2012 Zachary Reichenbach, CPA William O’Donnell
  • 2. Overview • Background on Ellin & Tucker, Chartered • Overview of Forensic and Valuation Services • Forensic Accounting • Litigation and Business Valuation • How to Get Into FVS • Our Backgrounds and Experiences • Questions
  • 3. Who are we? • Mid-Atlantic regional firm established in 1946 • Over 65 years of service • More than 100 employees • Four locations • Headquartered in Baltimore Baltimore Washington, DC Frederick Belcamp 3
  • 4. What services do we provide? • Services • Industries • Accounting and Auditing • Automotive • Bankruptcy • Construction • Business & Management • Employee Benefit Plans Consulting • Health Care • Business Valuation • Hi-tech/Biotech • Damages & Litigation • Law Firms • Forensic Accounting & • Manufacturing Fraud Investigation • Non-Profits • Mergers & Acquisitions • Professional Services • Tax Service • Printing • Private Investment Funds • Real Estate • Retail • Wholesale Distributions
  • 5. The Forensic and Valuation Services Group: • Advices clients and provides expert testimony in domestic and international litigation matters • Cases have involved significant damage amounts • Performs numerous investigations of national and international investment schemes, bank embezzlements and fraud in a variety of industries • Analyzes complex financial transactions providing counsel, partnerships and other business entities with the answers they need to resolve legal, regulatory and general business disputes • Respond timely and communicate financial information clearly and concisely in a courtroom setting
  • 6. Typical FVS Casework Fraud Business Investigation/ Domestic Valuations Examination Disputes Damages Other Sale Deception Hidden Assets Commercial Loss from Purchase Intentional Hidden Income Patent Shutdown of Shareholder Manipulation of Infringement Business Disputes Records Personal Injury Operations Wrongful Fire losses Death Misappropriation Wrongful of Funds Termination Breach of Contracts Transaction Analysis Asset Tracing over Time 6
  • 7. Who engages the FVS Group? • Public and Private Entities • US and International • Attorneys • CPA Firms • Banking Institutions • Trust and Wealth Managers • Insurance Companies • Government and Law Enforcement Agencies
  • 9. Definition of Forensic Accounting • The term Forensic Accountant refers to an accountant who performs an orderly analysis, investigation, inquiry, test, inspection or examination in an attempt to obtain the truth and develop an expert opinion. • What does this mean? • Applies accounting skills to legal matters in a wide range of issues • Addresses a past event • Uses financial information • Produces information about finances • For use in judicial proceedings
  • 10. Roles of Forensic Accountants Expert Witness for Litigation (e.g. Damages) Expert Witness Transitional Business for Valuation Advice (e.g. Transaction) Forensic Accounting Event Fraud Analysis
  • 11. Fraud, Forensic and Anti-Trust • Civil fraud investigations • Asset and transaction tracing • Criminal fraud investigations • Accountant malpractice • Director and officer negligence • Securities fraud investigations and self dealing • Money laundering • Contract compliance • Transaction tracing • Investment advisor malpractice • Internal corporate investigations • Corporate veil piercing • Sarbanes-Oxley compliance • Application of accounting principles • Misappropriation of corporate • Accounting controls and assets and corporate procedures reviews opportunities • Regulatory compliance and tax evasion
  • 12. Why are Forensic Accountants needed? • Fraud prevention • Examine current internal controls for weaknesses • Implement changes to strengthen internal controls • Suspicion of fraud • Investigate any allegations of fraud • Fraud has already occurred • Determine the extent of the loss • Follow the paper trail and expose how the fraud occurred • Testify in court • Litigation support • Business valuations • Calculation of loss and damages • Estimate any unreported/over-reported income
  • 14. Litigation Support • Commercial Litigation Services include assisting legal counsel and their clients with commercial disputes and litigation at every stage of the litigation process • Commercial Damages • Calculation of Lost Profits • Calculation of Loss in Value
  • 15. Commercial/IP Litigation & Bankruptcy Services • Discovery and Fact Finding • Patent infringement • Damage Analysis and • Trademark infringement Quantification • Trade secret misappropriation • Settlement Negotiations or Mediation • Copyright infringement • Expert Reports and Expert • Trade dress Witness Testimony • Bankruptcy Analysis, • Lost Profits Investigation, Turn-Around, and Restructuring Support • Loss of Business Value • Increased Cost Claims
  • 16. Business Valuation Services • Valuations of closely held business interests including corporations, partnerships, and limited liability companies • Valuations of securities and fractional interests including debt, preferred stock, SAR’s, and restricted publicly held stock • Valuations of intangible assets and intellectual property • Valuations of stock options, warrants, and stock grants • Valuations of ESOP interests • Valuations for recapitalization and freeze transactions • Fairness opinions • Fair value determination for financial statement purposes
  • 17. How to Get Into FVS and Gain Experience
  • 18. Skills Required Accounting Skills Legal Skills FVS Finance Skills Skills Economic Skills
  • 19. Where to Start? • Accounting vs. Finance Backgrounds • Accounting Background • Auditing experience • Understanding of financial statements • Understanding of financial analysis • Workpapers and supporting documents • Finance Background • Financial Analyst Experience • Understanding the macro and micro level economic factors • Understanding financial markets • Understanding of cash flow • Risk and return analysis • Time value of money
  • 20. What is an Auditor? What is a Forensic Accountant? Auditor Forensic Accountant • An independent third-party • An accountant who performs who examines and verifies a an orderly analysis, Company’s financial and investigation, inquiry, test, accounting records as well as supporting documents to inspection or examination in express an opinion on the an attempt to obtain the Company’s financial truth and develop an expert statements opinion • Auditor’s report provides credibility to a Company’s financial statement
  • 21. Designations and Certifications: Experience, education and professional competence of the forensic accountant is crucial for the proper management of an engagement • Certified Public Accountant (CPA) • Chartered Financial Analyst (CFA) • Certified Forensic Financial Analyst (CFFA) • Certified Fraud Examiner (CFE) • Tax Degree (MST) • Courtroom Experience • Written and Verbal Communication Skills • Ongoing Continuing Professional Education
  • 22. Our Experiences and Backgrounds

Editor's Notes

  1. CFFA through NACVA (National Association of Certified Valuation Analysts).CFE is through the Association of Certified Fraud Examiners.