Category Archives: Fraud Prevention

There are many reasons for a client to need to determine the value of a company.  Revenue Ruling 59-60 is the impetus for all business valuations (appraisals).  There are three approaches that are utilized to value a business.  The three approaches are the Asset-Based Approach, Income Approach and the Market Approach.  Underneath each approach there…  Continue Reading »

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 »

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 »

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 »

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 »