A forensic audit analyzes accounting data and bases its findings on methodically collected evidence that can be admissible in legal proceedings or in any acceptable dispute resolution framework (mediation or arbitration).
The forensic auditor combines knowledge and skills in accounting and auditing, together with knowledge and skills in investigations, questioning of witnesses, and criminal and civil law. The auditor understands evidence protocol and has experience in proper collection and documentation of evidence that establishes his findings and recommendations.
The forensic auditor cooperates with various experts, such as private investigators, computer specialists, insurance assessors, and appraisers. The results of a forensic audit can be used to file a law suit, to support disciplinary actions against employees or functionary, to achieve a better bargaining position with debtors, or can be delegated to authorities for the purpose of a criminal investigation.
Our firm specializes in consulting and assisting defendants or prosecutors involved in legal proceedings relating to fraud, or other financial disputes. We can also, based on the case’s particular needs, supply our findings as expert opinion. Our team has both expertise and experience in performing expert witness duties in legal proceedings.
Fraud and embezzlement investigations
Our firm exposes and investigates into cases of fraud or embezzlement, including computer fraud, financial reporting fraud, etc. The investigation process includes the quantification of damages, identification of perpetrators, locating the missing assets, collecting evidence for legal proceedings or for aiding an official investigation, and detailing the civil and criminal repercussions of the findings.
The investigation includes data collection and analysis, often through computer-based tools and the questioning of relevant parties.
A few notable cases our firm worked on: we performed a thorough forensic audit on the collapse of the Club Market chain of supermarkets, and we worked for the trustee representing the Car and Go Inc. bondholders after the parent company received a company dissolution decree.
Financial disputes and conflicts
Oftentimes, an expert investigation into the facts of the matter is needed in financial and accounting disputes. This lays the ground for the case’s evidence and quantification of damages supporting either side of the case. Our firm provides assistance and consulting to defendants or prosecutors involved in legal proceedings pertaining to various financial disputes, and also gives expert opinion in court to present and substantiate the findings of the forensic audit.
In a financial dispute between business partners, for example, we can check whether one of the partners withdrew funds or assets from the partnership, or exploited the company’s assets for personal purposes.
In disputes involving credit arrangements, we can ascertain whether either side breached a condition of the credit agreement, and we can calculate the correct principle and interest owing. In disputes involving investors and asset managers we can determine whether a fund manager made trading decisions that were detrimental to investors, or didn’t follow the specifications of the asset management agreement, or violated securities legislation (the securities act, investment advising act, investment marketing and asset management act, joint investing in trusts act, etc.) In divorce or estate cases, we can locate joint money or assets that were illegally transferred to the benefit of one of the parties.
We often get appointed as experts by the court of law to investigate claims made in civil lawsuits
We cooperate with the internal auditor and the corporation’s independent
accountant, or with the appointed liquidator or receiver, to assist in exposing and investigating fraud and irregularities by employees, management, or external elements.