Category Archives: Fraud Prevention

The Role of Forensic Skepticism in Lost Profits Calculations

Financial experts have a variety of tools at their disposal for calculating lost revenues and avoided costs when analyzing claims for lost profits or other business damages. However, it’s also critical to look behind the numbers for signs that they might have been manipulated or falsified. This “forensic skepticism” is part of what makes forensic…  Continue Reading »

Site Visits are a Critical Part of the Valuation Process

See the site for yourself It’s critical to see a Houston, Texas business in person to value it, as well as businesses in other locations. Tax returns, financial statements, and marketing materials tell only part of the story. Especially in an adversarial situation, a written questionnaire doesn’t adequately bridge the gap. To get a comprehensive…  Continue Reading »

Finding Hidden Assets and Unreported Income

When valuing a Houston, TX business for divorce or shareholder disputes, the business valuation and forensic accounting disciplines often intersect. Controlling shareholders may, for example, try to hide assets or downplay cash flow to minimize buyouts of their spouses or minority shareholders. Valuation experts know how to unearth and adjust for financial misstatement, and are…  Continue Reading »

Valuation Professionals Factor Fraud into the Valuation Equation

Assessing Fraud Risks A company’s value may be largely impacted when fraud strikes. According to the 2016 Report to the Nations on Occupational Fraud and Abuse, the Association of Certified Fraud Examiners (ACFE) estimates that companies lose approximately 5% of revenues to internal theft and financial misstatement each year. Here’s how this statistic relates to…  Continue Reading »

Back to top