Services

Fraud Protection & Internal Controls

Securing Your Company's Assets

Fraud is an overlooked area in most organizations. A typical fraud scheme can last several years and can have a variety of negative consequences for business owners. The loss of assets, negative media exposure, and the cost and lost time associated with a lengthy legal battle that is likely to follow are three common situations that any business owner would like to avoid.

The implementation of a strong system of internal controls can significantly reduce the likelihood of your business falling victim to fraud. Some important controls include the segregation of accounting duties, the proper approval of transactions, and physically securing the blank check stock, equipment, and inventory.

Our fraud protection and internal controls professionals can help you:

● Perform a fraud risk control assessment for your organization.

● Identify internal controls weaknesses and provide effective solutions.

● Draft a corporate fraud policy that sets the tone your organization's ambition to minimize the threat of fraud activity, including an outline of the punishments that would ensue.

A few facts about fraud

● Long-time employees conduct most fraud. They are more likely to have your trust and access to financial records.

● Fraud can come in many forms. Skimming cash, inventory theft, diversion of checks and electronic fund transfers are common examples.

● Some of the reasons fraud occurs are addictions to gambling, shopping, and illegal drugs, but fraud is also driven by medical conditions and the need to pay for expensive treatments or medication.

● A financial audit does not ensure the absence of fraud. A financial audit's main purpose is to ensure the financial statements are fairly presented.

Why Pinell & Martinez, CPAs?

With Certified Public Accountants, a Certified Fraud Examiner, and a Certified Information Technology Professional on staff, we are equipped to handle the most complex forensic accounting audits and internal control assessments. Drawing from our deep well of experience and tried-and-true investigative accounting process, we can help uncover illicit financial activity, compile it into an easy-to-understand report, present the evidence in court if necessary, and set up a prevention system to discourage future fraud attempts.

Here is a more in-depth look at this process:

Planning - Our team of forensic accountants are experts at planning for an investigation. Here we will figure out how to identify the type of fraud, how long it has been in practice, how it has been concealed, who the perpetrators are, and the quantity of financial loss.

Gathering Evidence - Our forensic accountants are skilled in the techniques used to collect evidence, including testing controls to identifying process weaknesses; analytical procedures to compare trends over time; computer-assisted techniques to identify timing and location of relevant details; and interviewing employees.

Reporting - We will compile everything we find into a concise, easy-to-understand report that includes a summary of evidence and the amount of loss suffered. The report will also discuss how the fraud scheme was set up, and which internal controls, if any, were circumvented. We’ll even provide advice on how to prevent reoccurrences of fraud.

Litigation Support - If necessary, our forensic accountants will clearly and professionally present the gathered evidence in court.

To learn more about how we can help you, contact Chris Pinell at 985.327.7311