Business Interruption Losses
The most common causes of Business Interruption (BI) claims are from hurricanes, floods, tornados, fires and now flu pandemics such as COVID-19. After a catastrophic event, adjusters may not have the time or resources to evaluate a BI claim.
Our team is strategically positioned to provide forensic accounting support to adjusters and attorneys with their BI claim load. We analyze pre-disaster and post-disaster financial information to quantify the amount of the financial loss. Every BI claim is unique and therefore requires an in-depth financial analysis and approach to calculating the lost profits. Even though there are some common methodologies, there are some areas that can be argued such as determination of benchmark revenues, projections, variable costs, and period of restoration.
JDS Forensics can act as your Appraiser in the appraisal process found in some policies or as an expert witness if needed in litigation.
Financial Fraud Losses
Financial fraud may be committed by an individual or individuals inside or outside of a company that may result in financial distress or possibly the inability of the company to continue as a going concern. Attorneys, Trustees, Receivers, Corporate Monitors, Insurance Companies, and various Government Entities typically will call upon a forensic accountant to follow the money involving various fraud schemes including Ponzi schemes, bankruptcy fraud, securities fraud, insurance fraud, grant fraud, money laundering, and corporate embezzlements.
Procedures to determine how the fraud occurred and to quantify the economic damages may include: • Interviews of Key Financial Officers and Accounting Personnel, and Internal & External Auditors • Review of source documentation such as invoices, approved vendor lists, canceled checks, payroll records, deposits records, bank statements, general ledgers, unusual journal entries, income tax returns, financial statements analysis, bank reconstructions, analysis of emails, corporate searches for related parties or conflicts of interest and shell entities, and other applicable data analytics • Review of internal controls, including recommendations to the Board of Directors or other designated Oversight Entity for noted material deficiencies and sources for potential asset recovery.