Today’s Topics

Concealment Investigation Methods
FORENSIC ACCOUNTING - BA124 – Spring 2015
Concealment
Investigation




Examination of documents
Routine audits
Extended computer searches
Physical asset counts
FORENSIC ACCOUNTING - BA124 – Spring 2015
Documentation


Documents do not forget
…but
Keep in mind these cautions





Maintain chain of custody
Provide unique markings
Organize the evidence effectively
Strive to obtain original documentation
Consider use of Document Experts
FORENSIC ACCOUNTING - BA124 – Spring 2015
Auditing & Sampling







Recalculation
Reasonableness
Documentation
Confirmation
Observation
Physical examination
Inquiry
FORENSIC ACCOUNTING - BA124 – Spring 2015
Statistical sampling
plays a significant role
here. But be careful of
sampling and nonsampling errors. See
discussion of discovery
versus computer
sampling.
Hard-To-Get-Documents



Subpoena
Search warrant
Voluntary consent
FORENSIC ACCOUNTING - BA124 – Spring 2015
Today’s Topics




Why Studying Conversion is Important
Sources of Information
The Role of Net Worth Calculations
Miscellaneous Articles and Cases
FORENSIC ACCOUNTING - BA124 – Spring 2015
Role of Conversion
Analysis


Helps determine the extent of the
fraud
Serves as a facilitation for confession
FORENSIC ACCOUNTING - BA124 – Spring 2015
Sources of Information
(Study pages 254-261)

Variety of sources






Federal government sources
State government sources
Local government sources
Financial institution records
Public databases
Internet sources
FORENSIC ACCOUNTING - BA124 – Spring 2015
Don’t try to
memorize
the details of
these
sources.
Know how to
use some of
them.
Net Worth Method


For use in estimating “Funds from
Unknown Sources”
Calculation:




Assets - Liabilities = Net Worth
NWc - NWP = Net Worth Increase
NWI + Living Expenses = Income
Income - Known Sources = Unknown Sources
FORENSIC ACCOUNTING - BA124 – Spring 2015