Business Fraud Detection
Many businesses are affected by fraud, which is often perpetrated within its own confines. This may be something as simple as a line manager overstating worked hours for an employee or something as complex as a business executive selling sensitive information to a major competitor of the business.
A business can lose money or even be driven into bankruptcy or liquidation by internal fraud. In many cases the business owners never become aware of this fraud. The business may fail because of the fraud and the owners are left thinking that their lack of business experience has brought them to this unfortunate position. It is often the case that a cursory inspection of the business by a forensic accountant may uncover inconsistencies which lead to the discovery of internal fraud.
We have been involved in many high profile fraud investigation cases, providing evidence to investigating authorities and where necessary giving Expert Witness evidence in court.
Due Diligence When Acquiring a Business
When purchasing a new business care must be taken to ensure that the business’s assets and liabilities are consistent with those included in the offer.
Some aspects of the business on offer which need to be examined include the following:-
- Ensure that none of the business assets has its title held or restricted by lease or hire purchase contracts.
- Ensure that the value of all of the business assets are of the same value as that being advertised by the vendor of the business.
- Ensure that the business does not have outstanding rates or other taxes which would be the liability of the new owner.
- Ensure that the liabilities of the business are not understated and that there are no undisclosed contingent liabilities such as a pending legal case against the business.
We have the skill and experience to carry out full due diligence on any type of business which is being advertised for sale.
Separation and Divorce Cases
The event of separation or divorce is usually very difficult for both spouses. Distribution of joint assets between spouses can by difficult but is unavoidable. Determining the amount of maintenance payments to by made by one or other spouse can also be problematic.
We can assist in the valuation of joint assets and where necessary we can detect assets which have not been disclosed by one or other spouse.
We can assist in the determination of the amount of maintenance payments which a separated or divorced spouse must pay. We can prepare statements of affairs for the spouse, which will be used in court to ascertain his or her wealth and ability to pay a certain level of maintenance.
We can also mediate between spouses at the time of separation in order to have agreement between them on division of joint assets and level of maintenance payments. This inevitably reduces the time and legal costs involved of the separation or divorce.
Loss of Profit/Earnings Calculation for Personal Injury Compensation Claims
In many personal injury compensation cases the amount of compensation may increase significantly if it can be proved that the claimant has suffered a loss of business profits or employment earnings due to his or her injuries. This compensation may also be extended to take account of the loss of future profits/earnings if it can be proved that the claimant’s injuries will restrict his or her ability to work into the future.
We can prepare forensic reports calculating past and future loss of profits/earnings to assist in providing evidence to substantiate this element of a case in court.
We have prepared forensic accountants reports on the loss of profits/earnings for claimants in personal injury compensation claims and in all cases this has increased their claim significantly.
Monthly Internal Audit and Fraud Detection for Bars and Restaurants
Bars and restaurants are highly dependent on the honesty and accuracy of their staff to ensure that the business is not suffering losses. This is because of the involvement of cash in both types of business.
If staff members are careless or dishonest they may undercharge customers or misappropriate cash or business stock.
We can run monthly checks on the business which will uncover any errors or fraud being carried out by staff members.
This will give the business owners the peace of mind that their business is being run properly and free from errors or fraud. It can also save the business owners from losses occurring in the business or ultimately being forced out of business.