Business Interruption/ Loss Profits
When physical damage due a fire, flood, hurricane or any other peril results in a diminishment of business income, an analysis is performed of operational and financial records to measure the actual loss sustained through the period of restoration. The analysis may include:
• Interviewing key management, staff, and customers.
• Reviewing relevant financial documentation such as tax returns and profit & loss statements.
• Comparing projected operational activity to actual during the period of restoration.
• Calculating any extra expenses incurred to mitigate business interruption period. • Calculating Business Personal Property damaged by the peril.
Financial fraud may be committed by an officer, manager, or employee of a company and 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/Vertical & Horizontal Analysis.
• 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, and email analysis.
• Review of internal control procedures, internal & external audit reports and recommendations.