Fraud and Forensic Services

To detect whether accounting irregularities are inadvertent errors or an intentional cover-up of asset theft, Barnes Dennig offers Fraud Examinations, led by Director Chad Martin, CPA, CFE. As a Certified Fraud Examiner (CFE), Chad and his team are trained to recognize unusual transactions and to detect fraudulent patterns.

Other related areas include:

• Commercial Damages
• Criminal and Civil Defense and Prosecution
• Embezzlements and Misappropriation of Assets
• Fidelity Bond and Insurance Claims
• Preferred Payments and Fraudulent Conveyances
• Under-reported Income and Over-reported Expenses

Also known as Forensic Accounting, CFEs apply accounting, audit and other investigation methodologies to establish the cause and amount of damages, detect fraud or embezzlement, and locate documented evidence. Should a client decide to pursue legal action based on the results of Barnes Dennig's fraud examination, our professionals are available to provide knowledgeable Litigation Support.

These services include advising attorneys in the preparation of their case, analysis of information, and assistance in determining damages through projections of what the plaintiff's financial condition would have been had the fraud not been perpetrated.

Additionally, Barnes Dennig's Fraud Examiners can help your company devise an internal control system strategy to prevent the occurence of accounting fraud, today and into the future.

Deterring, Detecting & Reporting Fraud

Chad Martin recently presented on this topic at one of Barnes Dennig's quarterly roundtables. The handout from the roundtable is available by clicking here. Below is a portion of his presentation:

The Fraud Triangle

Dr. Donald Cressey, one of the nation’s leading experts on the sociology of crime, developed the Fraud Triangle model to display the three factors that must be present, at the same time, in a situation in order for a person to commit fraud. By understanding the triangle and how it applies to your staff, you can get a sense of the likelihood that fraud will be committed within your organization.

                                            

 

Point 1 - Opportunity for fraud is generally provided through internal control weaknesses, such as poor supervision and review, segregation of duties, management approval, and system controls.

Point 2 - Incentive/pressure to commit a fraud can be imposed by personal financial problems, personal vices such as gambling, drugs, extensive debt, etc., unrealistic deadlines, budgets and performance goals. This is the initial motivator of the crime.

Point 3 - Attitude/rationalization occurs when a person creates justification for the fraudulent acts such as an immediate need for money with the intention of repaying in the near future, the company will be more forgiving than the IRS or debt collectors, and reluctance to reduce lifestyle. They consider themselves ordinary, honest people caught up in a bad circumstance.