Advisory Services

Fraud Examination, Internal Controls & Litigation Support

Fraud Examination

AdvisoryServicesFraud costs businesses and other organizations in the United States, on average, 5 percent* of their annual revenues and can go on for years without being detected. Gumbiner Savett knows its clients require much more than fraud investigation and detection. They require fraud prevention.

Although any company can be a victim of fraud, your company could be more susceptible based on the nature of your business. A large volume of cash transactions, an owner that is not on the premises, marketable inventory, a lack of accounting controls, multiple locations, international purchases and sales, and a large number of transactions can make your business more vulnerable to potential fraud.

A key aspect of the services we provide is educating our clients about fraud prevention and setting up internal controls that help deter fraud before it occurs. Controls such as implementing a fraud reporting mechanism, establishing an ethics officer and developing a corporate code of conduct are key to mitigating a company’s risk of fraud.

We take careful steps to root out existing fraud and identify security lapses and theft opportunities.

To discuss typical fraud schemes such as: theft of incoming checks, purchasing schemes, returned payment schemes, fraudulent billings from a shell company, false shipment, forged endorsement schemes and theft of inventory, contact our corporate fraud specialists.

We take careful steps to root out existing fraud and identify security lapses and theft opportunities:

  • Internal controls: We entrench ourselves in our clients’ operations, looking at existing internal controls and identifying assets susceptible to fraud
  • Security lapses: We identify security lapses such as unauthorized access to inventory and financial records, checks and warehouses – which fraudsters typically target
  • Records: We look at how fraudsters can cover up fraud in the underlying accounting records
  • Education: We educate our clients about how fraud typically occurs in today’s environment and set up and monitor internal controls that deter fraud in order to protect their bottom line

Internal Controls

Companies gain a better understanding for the way they’re operating when their finance function is properly documented. A study of a company’s internal control system is a service most executives should consider adding to their yearly finance function.

We document a company’s finance function and find out where the holes are. Is your company in a transition mode? Are you gaining a new CFO or controller? Are you considering buying another company? Is what you have right now sufficient enough to handle company growth? Is fraud suspected? Gumbiner Savett will work with you to determine the scope of your internal control needs.

As accounting professionals Gumbiner Savett has the skill set necessary to find financial inconsistencies that can help companies add to their bottom line through improved efficiency, both day-to-day and long term.

How often do you have your internal controls checked? Any organization has its weaknesses and we have the know-how to spot the ones you may not have thought about checking on. Our accounting methodology allows us to look at the checks and balances in your organization and identify inconsistencies such as: one person having too much control over a key function, a function residing in the wrong department or a function not being efficiently executed.

Our professionals have the experience to:

  • Perform a study of internal controls
  • Document internal controls
  • Evaluate the design of internal controls
  • Recommend solutions for design deficiencies
  • Assist in the implementation of recommended solutions
  • Test the effectiveness of internal controls
  • Identify opportunities for improving operating efficiencies

Privately held companies may consider compliance with Section 404 of the Sarbanes-Oxley act, even though it is not required. The following are some circumstances when this may occur:

  • The company intends to become public in the future
  • The company has been identified for acquisition by a public company
  • The company is held for sale in the public company environment

Litigation Support

Gumbiner Savett professionals understand that each legal case is unique with its own set of facts, circumstances, players and lawyers. We have significant experience in identifying relevant financial issues and presenting conclusions, allowing us to work closely with attorneys and their clients on litigation matters. Whether we are calculating or rebutting damages, we are involved in all stages of each case, including devising strategies, aiding in the preparation of interrogatories, assisting with preparation for depositions and trial, and providing expert witness testimony. Our clients include attorneys, clients involved in litigation and trustees of large estates.

Our litigation support professionals are accustomed to rigorous cross-examination and our experience has given us insight into what attorneys expect from CPAs. We work for both plaintiffs’ and defendants’ counsel. We also provide services as independent accountants and mediators in matters involving accounting disputes.

Gumbiner Savett’s litigation support services include:

  • Analyze and interpret financial data
  • Identify and quantify damages
  • Trace assets
  • Identify, research and resolve income tax issues
  • Analyze and rebut opposing expert opinions
  • Assist in formulating strategies and drafting pleadings
  • Value businesses and other assets
  • Participate in settlement negotiations

Our litigation experience:

  • Accountant’s malpractice
  • Bankruptcy
  • Business disputes
  • Family law accounting and divorce
  • Fraud investigations
  • Personal injury
  • Regulatory actions
  • Royalty and contract audits
  • Tax controversy