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. INFOCHASE INVESTIGATIONS Financial Investigations a Specialty Records Examination Fact Verification Fraud Detection
Small municipalities, non-profits and small businesses almost always lack the financial controls that ought to exist. This fact of life goes with small budgets and few employees. It is not uncommon for one person to handle multiple functions that should be separated. Loose controls does not mean there will be misuse or theft. It just makes it more susceptible. Benjamin Franklin spoke this truth: "Opportunity makes a thief." Click here to read more about embezzlement Benjamin Franklin also said "A stitch in time saves nine." You probably know what this means: A little effort upfront can save a lot of trouble down the road. I can evaluate your particular operation and help you set up controls to deter theft from within.
************************************************************************************* The scope of a financial investigation is whatever the client wants it to cover. A general investigation should address at least these key points: Are the operating and record-keeping procedures adequate to deter theft, detect if it occurs and identify responsibility ? The Basic Test for Funds. Mathematically, does the organization's income equal the sum of its expenditures and balance ? Revenues. Are controls in place to ensure that all income is recognized and placed on the books ? Are controls adequate to ensure that amounts due (receivables) cannot be "erased" from the books and must ultimately be dealt with only by collection or proper removal as a receivable ? Expenditures.
Is
expenditure accounting accurate ? Are procedures
sufficient to show all spending, what it was for and who was
responsible ? Are controls adequate to restrict expenditures to
the types of expenses that are authorized ? Internal Controls. Are duty assignments and the work flow procedures sufficient to prevent (or at least deter) the misuse and loss of funds ? And Most of all. Are the organization's procedures actually being followed ? A targeted investigation of a specific suspected embezzlement would have to be tailored to the situation. As a retired auditor and accountant, I welcome opportunities to stay active in this important aspect of financial management. Please call on me for an evaluation of your situation or to investigate any fraud or embezzlement you suspect. ****************************************************************************************** ****************************************************************************************** Note: I do not perform audit and attest services, that is; render opinions on financial statements.
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