Fraud and Forensic Services

The typical organization loses 5 percent of its annual revenues to occupational fraud. Some industries are more susceptible than others. Do you know how your organization fares? Because of its sheer size and number of employees, a government is extremely susceptible to fraud. As such, government agencies have fallen victim to nearly every type of fraud that currently exists. AVZ provides fraud and forensic services to both businesses and governmental entities.

According to the Association of Certified Fraud Examiners’ “Report to the Nations 2018 Global Study on Occupational Fraud and Abuse”, nearly two-thirds of cases involve some form of fraudulent disbursement including expense reimbursement schemes, billing schemes, check tampering, payroll schemes and register disbursements. There are a number of ways you can implement safeguards against these common frauds. The risk of fraud involving cash is obvious.

There is also a risk involving noncash schemes. The theft of assets other than cash often includes the theft of inventory, supplies and tools. Some ways to safeguard these noncash assets are to: conduct periodic inventory counts, have employees verify and initial each other’s work before shipping, limit the number of shippers you use to deliver goods and prominently place surveillance cameras to deter and record theft.

Another form of theft can occur without inventory being stolen. When employees are compensated based on production or profitability, overstating inventory can overstate profits and the financial incentives paid to employees or management. This could mask a financial problem within your entity that may not be uncovered timely, causing lasting harm.

We can assist you with advice from the discovery phase through providing testimony during a trial. More importantly, we can provide you with assistance in the prevention of fraud.