Forensic accounting & loss quantification
Fraud Investigation & Detection
Fraud investigation and detection in a forensic accounting context means applying structured procedures (Benford analysis, journal entry testing, related-party mapping, and interview protocols) to identify misappropriation, financial misstatement, or fraudulent insurance claims. Findings must be documented for civil remedies, insurance voidance analysis, or referral to regulators when appropriate.
Typical triggers
Whistleblower reports, unexpected covenant breaches, inventory shrink spikes, or contradictory loss submissions may trigger investigations. Insurers may suspect overstated BI after a catastrophe; corporations may suspect vendor kickbacks.
Methodology
We preserve evidence, map control weaknesses, and quantify exposure ranges. Workplans are tailored to urgency and privilege constraints.
- Data analytics on GL and subledger detail
- Bank and payment instrument tracing
- Interview plans coordinated with counsel
Outcomes
Clients receive fact findings suitable for board reporting, insurer cooperation, or litigation. We do not opine on criminal liability but document financial facts clearly.
Related services
Connects to forensic accounting for litigation, inventory loss assessment, and insurance claim support.
Related services
Frequently asked questions
When should a company launch a forensic fraud investigation?expand_more
Common triggers include whistleblower allegations, unexplained margin erosion, failed audits or control testing, inventory anomalies, or contradictory insurance submissions. Early preservation of logs, access controls, and communications is critical.
Will you coordinate with outside counsel and IT?expand_more
Yes. We work under legal direction for privilege, chain of custody, and interview strategy. Technical collections are coordinated with IT and e-discovery vendors when imaging or log extraction is required.
What deliverables result from a fraud investigation?expand_more
Typical outputs include chronologies, fund tracing exhibits, exposure ranges, control gap memos, and board-ready summaries. Criminal referrals are decisions for counsel and management; we focus on financial facts.