Forensic Accounting

Forensic Accounting is the utilization of accounting knowledge along with the use of auditing and investigative skills and techniques to produce reports and analyses suitable for use by courts and other investigative bodies to provide a basis for discussion, debate and ultimately dispute resolution.

We have developed an expertise in this area which is led by a partner, Tamber Alsop and a director, Penny Hill who has achieved the status of a Certified Fraud Examiner (CFE) after completing a specialized curriculum requiring 100 hours of specialized training, a character and background investigation and meeting certain experience requirements. As a CFE they must continue to participate in ongoing CPE and execute all engagements in compliance with a special Code of Ethics.

Fraud accounts for billions of dollars of losses for businesses each year in the United States. Fraud can take the form of accounts receivable manipulation, diversion of sales, fictitious vendors, payroll manipulation, petty cash theft and expense account abuse, among other activities. While there is a good deal of publicity regarding fraudulent activities at large companies, a recent study showed that small organizations (100 employees or fewer) actually suffer larger median losses from fraud than large organizations (with 10,000 plus employees). In fact, small companies are over 100 times more vulnerable to fraud than their largest counterparts.

Any organization (governmental units or not-for-profits) benefits from fraud detection or prevention services. Our clients often include:

• Company Board of Directors
• Company CEO
• Audit Committee
• Company Legal Officer
• Outside Counsel
• Governmental Officials

Fraud Prevention

• Create and maintain a culture of honesty and high ethics: Set the tone at the top by setting achievable goals and expressing "zero tolerance" for unethical behavior. Also, train employees regularly regarding the organization's values and code of conduct.
• Have strong system controls: Identify ways to increase security in your computer, record keeping and payment systems.
• Pay attention to the warning signs on the books. Create internal mechanisms that alert you to potential transgressions.
• Report irregularities. Create an anonymous reporting system for employees who have witnessed or suspected illegal or unethical actions.

Hochschild, Bloom & Company LLP can help in your fraud prevention efforts by:

• Helping you evaluate and strengthen internal controls.
• Performing an assessment of your system controls and security
• Conducting a fraud exposure audit
• Working with you to identify and monitor metrics that may provide early warning signals of activities that may be indicative of potentially fraudulent transactions and occurrences

For more information on our forensic services please contact Tammy Alsop or Penny Hill at 636.532.9525.