5 Times To Speak With A Certified Fraud Examiner
Fraud represents one of the biggest legal and financial risks a company might face. If you're not sure whether the time has come for you to contact a certified fraud examiner, consider whether you're dealing with one of these situations.
Rumors
Even if you haven't substantiated rumors of fraud, nothing prevents you from asking a forensic accountant to do a bit of probing. You can look at divisions or individuals that might be engaged in fraudulent activity. Check their numbers and make sure everything is in line. Even if nothing comes of the investigation, you'll have a more detailed understanding of your operation's accounting issues.
Inconsistent Numbers
This is one of the first potential signs of fraud in many organizations. You might be looking at the numbers on the balance sheet and trying to figure out what's going on. For example, expense reports might represent spending no employee could engage in through the regular conduct of their duties. Drilling down further may reveal someone has been moving money into certain expense reports to cover up fraud.
Problems With a Business Relationship
People often think of fraud as a fundamentally internal issue. However, you might also encounter potential business partners engaged in fraudulent conduct. For example, a supplier might bill you more than expected and try to pass the extra costs off as inflation. A certified fraud examiner can look at what the receipts and reports say so you can develop a better sense of whether your business partner is dealing with you straight.
Regulatory Inquiries
If a regulator has taken an interest in your company's accounting, you might want to get in front of the issue. A forensic accountant can begin an inquiry so you can get ahead of the curve. If they encounter problems, you can then turn the information over to the regulatory agency. While you might face penalties or fines for whatever happened, you can at least signal a good-faith desire to address the problem rather than fighting the inquiry.
Legal Actions
Whether you're conducting or facing legal actions involving allegations of fraud, it's a good idea to know the lay of the land. A forensic accountant can review the books and tell you where there might be issues. You can then discuss these concerns with an attorney. If necessary, a certified fraud examiner can provide reports you can use to present your side of the case.