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Business Valuation in a Divorce: Analyzing Cash Flow v. Net Income – Don’t Expect (or Give Away) What Doesn’t Exist
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Kelly Schmid
When a couple is divorcing in an equitable distribution or community property jurisdiction and their assets include ownership in a closely held company, the value of the business typically must be determined. Analyzing the company’s cashflow is imperative during such a valuation. This is true whether the couple tries to establish the value themselves—with or […]
Business Valuation in a Divorce: Analyzing Cash Flow v. Net Income – Don’t Expect (or Give Away) What Doesn’t Exist | Kelly Schmid
When a couple is divorcing in an equitable distribution or community property jurisdiction and their assets include ownership in a closely held company, the value of the business typically must be determined. Analyzing the company’s cashflow is imperative during such a valuation. This is true whether the couple tries to establish the value themselves—with or […]
READ FULL BLOGCalculating Economic Damages: It’s About Far More than the Math | Jeffrey H. Lewis
Economic damages are designed to give claimants a chance to recover their financial positions in the wake of injuries caused by another party. To calculate those damages, however, is no easy task. Experts are required to help counsel and claimants build a credible calculation that matches the facts and circumstances of a case and can […]
READ FULL BLOGFinancial Fraud Investigations: Why an Employee’s Vacation is a Great Time to Detect Fraud | Lindsay H. Gill
Time off isn’t just a necessity to help employees recover and regroup, it’s also an opportunity for an organization to measure its efficiency and to uncover vulnerabilities it may face from fraud, waste, and abuse. Here are just a few of the ways an organization can leverage its vacation and time-off policies to help detect […]
READ FULL BLOGIn a Financial Fraud Investigation, It Pays to Follow the Digital Footprint | Lindsay H. Gill
Fraudsters often believe they have covered their tracks so well that their activity is untraceable, but they are increasingly running into a significant obstacle when attempting to hide their crimes: Their digital footprint. During the last decade, people have integrated digital tools into their personal and business lives at an astonishing rate. Since 2010, for […]
READ FULL BLOGBusiness Valuation Calculation Reports: Analyzing Assumptions in Cash Flow Forecast | Kelly Schmid
During my over two decades of working in the valuation profession, I have valued several hundred entities and reviewed hundreds of valuation reports, including business valuation calculation reports, summary reports, and comprehensive valuation reports prepared by other experts. While I have only infrequently seen valuation theory applied incorrectly, I routinely have seen business appraisers make […]
READ FULL BLOGHow Attorneys Can Effectively Utilize a CPA in a Breach of Contract Claim | Jeffrey H. Lewis
Selecting the right expert to calculate economic damages in a breach of contract claim can be critical in the success of an attorney’s case. The expert must be able to calculate damages resulting from a breach of contract and convey the story to a trier of fact in a manner that will make the attorney’s […]
READ FULL BLOGBusiness Valuation in Divorce Cases in a COVID-19 World, Part I: An Overview of Active Passive Appreciation Analysis | William C. Dameworth
The impact of COVID-19 on the value of private company interests is being actively explored and discussed nationwide by business valuation professionals, their professional trade associations, and users of business valuations (e.g. attorneys). Because COVID-19 can materially impact the value of a private company, consideration must necessarily be given to the impact of COVID-19 on […]
READ FULL BLOGUnlocking the Potential of Electronically Stored Information to Determine Lost Profit Damages | Kelly J. Todd
At many small businesses, it’s not uncommon to still find a mass of paper records, yellowing with age and haphazardly tossed in boxes, as well as old-school computers and dot-matrix printers with tractor feeds and green bar paper. Yet even the most unorganized and technologically unsophisticated small business may contain a trove of useful electronically […]
READ FULL BLOGHow Getting Too Close to Clients Can Lead Accountant Malpractice Claims | Ralph Q. Summerford
Accountant malpractice claims have been a growth industry for litigators for more than two decades, thanks to increasingly strict professional standards for auditors and accountants. And there’s no letup in sight. In fact, even in 2020, with the coronavirus wreaking havoc with the business community, regulators have continued to crack down on auditors who […]
READ FULL BLOGFraud Examination: Protecting Your Business from Workplace Fraud | Kelly J. Todd
Despite the distractions and upheaval the Covid-19 pandemic has had on your business, be careful not to overlook another threat that could be looming around the corner — fraud in the workplace. Occupational fraud is the misuse of one’s occupation for personal gain and includes anything from stealing office supplies to cooking the books to […]
READ FULL BLOGWhat Beneficiaries Can Do to Help Spot Fraud in a Trust or Estate | Lindsay H. Gill
It’s an all-too frequent concern for people who are no longer managing their own finances: Are they being taken advantage of by a trustee, executor, or attorney-in-fact—and what can they do to spot and prevent such activity? At Forensic Strategic Solutions, we are often approached by beneficiaries or their loved ones to investigate possible trust […]
READ FULL BLOGHow to Prevent Workplace Corruption and Collusion? Think Like a Financial Fraud Investigator | Kelly Todd
When financial fraud investigators discuss corruption in the workplace, they are usually referring to a single employee who is exploiting their position for personal benefit. Collusion, however, involves multiple people working together to abuse their power. When a collision occurs, the damage to a company’s finances and reputation multiplies. And pinpointing the perpetrators and the […]
READ FULL BLOGThe Shift to Teleworking: Protecting Your Business Data from Fraud | Kelly Todd
The mass exodus of employees from traditional offices in the wake of the COVID-19 pandemic and the growing ease with which information can be moved and shared has made one thing clear: Businesses are facing a risk-filled new frontier when it comes to their data security. The rapid shift to telework has only expanded the […]
READ FULL BLOGAccountant Malpractice Claims Are Likely to Rise. Are You Prepared? | Ralph Q. Summerford
CPAs, especially those in smaller accounting practices, usually have close relationships with their clients—and rightfully so. After all, who else is better positioned to understand clients’ finances and businesses than their trusted accountants? That is until they suffer a financial fraud scheme that a CPA has failed to uncover. Then, what I call the “client […]
READ FULL BLOGWorried About Workplace Fraud? Pay Attention to These Employee Behaviors | FSS
Economic turmoil can serve as a powerful accelerant for employee fraud, pressuring cash-strapped companies to sacrifice compliance activities to save money and fueling financial insecurity and temptation among workers.
READ FULL BLOGEight Tips for Detecting Fraud in Accounts Payable | Lindsay H. Gill
According to the Association of Certified Fraud Examiners 2018 Report to the Nations, fraudulent disbursement schemes remain the costliest form of asset misappropriation fraud to threaten small businesses. Although this risk can seem overwhelming, it may be avoidable through taking proactive steps against fraud within your company. Here are eight tips to help you expose […]
READ FULL BLOGBrilliance v. Ethics – Which One Wins? | Ralph Q. Summerford
Originally published by ACFE Insights. Smart people commit fraud every day. A recent case gives us a prime example. A federal judge asked Donald Watkins, Sr. to step away from the jury box as Watkins, Sr. made an impassioned plea in his closing argument. Watkins, Sr. was in the personal space of front-row jurors, who were […]
READ FULL BLOGAuditors Who Stole the Exam Are Convicted of Fraud | Ralph Q. Summerford
This failure of duty matters – it violates public trust and costs innocent people their jobs, their pensions and above all – faith in a system. The Wall Street Journal reported on March 11, 2019 that David Middendorf, the former national managing partner for audit quality and professional practice at KPMG, and co-defendant, Jeffrey Wada, […]
READ FULL BLOGCash Flow and Fraud Go Hand-in-Hand | Leslie P. Littrell
Imagine working at a company for a period of time, checking your bank account and realizing that no paycheck had been deposited in exchange for your work. This scenario would undoubtedly raise red flags. Similarly, cash flow analysis performed by lenders and auditors that reveals stagnant or negative cash flow can also serve as a […]
READ FULL BLOGBig 4 CPA Firm Knew in Advance Which Audits Would Be Inspected by Government Watchdogs | Ralph Q. Summerford
This is violation of trust, and it matters! Auditors must design their audits to look for fraud, and failure to do so may cause massive losses for stakeholders, investors, creditors and retirees. Neglecting to detect fraud can be truly life-altering — especially for retirees. While teaching a business ethics class in Jackson, Mississippi, I was […]
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