Recovering Embezzled Assets (Forensic Accounting)
Industry: Privately Held, Telecommunications Company
A global provider of long-haul, telecommunications services wanted to identify the surprisingly high burn-rate of a recent $2 million investment.
The company found that one of its partners had embezzled $600,000 of the $2 million dollar investment by setting up fictitious vendors, hiding parts of incoming bank statements and accounting for missing money as “vendor deposits” on the books.
CFO Consulting Partners’ personnel developed a forensic accounting program that identified the embezzled funds and put in place safeguards to mitigate further incidences of company theft.
The solution generated the following value-added outcomes:
- Reviewed finance policies and procedures.
- Conducted vendor analysis of tax ID numbers from W-9 forms.
- Delegated financial responsibilities among several employees.
- Rotated financial assignments.
- Instituted unexpected audits of financials and inventory.
- Provided unopened bank statements to partners.
- Reconciled bank statements on a monthly basis.
- Installed “positive pay” system where user approves all payments before bank clearing.
- Locked checks and stopped the practice of check-signing machines.
- Forensic Accounting
- Budget and Planning Process
- Planning and Analysis
- Preparation of Financial Statements
- Accounting and Reporting
- Technical Accounting
- Asset and Liability Management Forecasting
To hear how we can help protect your company funds, please contact:
Meryl Ravitz, Director, CPA
M: 646.650.2028 x714