Forensics
What is forensic accounting?
- The integration of accounting, auditing and investigative skills. Forensic services are specialized procedures applied by trained forensic accounting professionals, which may include accounting, auditing, or other similar activities to review data results.
- Our anti-fraud professionals identify red flags and map out fraud risk before it is too late.
What does a forensic accountant do?
- As Forensic Accountants, we utilize accounting, auditing and investigative skills when conducting an investigation. Equally critical is our ability to respond immediately and to communicate financial information clearly and concisely. Forensic Accountants are trained to look beyond the numbers and deal with the business reality of the situation.
Why is their work important?
According to the ACFE’s 2016 report to the nations:
- Survey participants estimated that the typical organization loses 5% of its annual revenue to fraud. Total losses in the ACFE study exceeded $6.3 billion, with an average loss per case of $2.7 million.
- The median loss caused by occupational fraud cases was $150,000. Nearly one-quarter of the frauds involved losses of at least $1 million.
- The frauds lasted a median of 18 months before being detected.
- Organizations tend to over-rely on audits.
- External audits were the most widely used control mechanism by the victims in the ACFE’s survey .They ranked poorly in both detecting fraud and limiting losses due to fraud.
- Audits are clearly important and can have a strong preventative effect on fraudulent behavior, but they should not be relied on exclusively for fraud detection.
- Internal controls alone are insufficient to fully prevent occupational fraud.
- It is important for organizations to have strategic and effective anti-fraud controls in place, internal controls will not prevent all fraud from occurring, nor will they detect most fraud once it begins.
- Given the high costs of occupational fraud, effective fraud prevention measures are critical. Organizations should implement a fraud prevention checklist to help eliminate fraud before it occurs.
Fraud Investigation & Internal Audits
What does a fraud examiner do?
- Fraud examiners investigate potential fraud happenings through reviewing documentation, interviewing individuals, data mining and query analysis along with initiating fraud deterrence and prevention programs to help companies avoid future problems.
How can the professionals at Palmar Consulting help?
- Internal audits & Internal control reviews
- Data mining & analysis
- Fraud deterrence
- Contract & Procurement Fraud Detection
- Contact us to discuss our 3 Step Proprietary Forensic Approach noted below
Palmar Consulting Group, Inc. Forensic Approach
- Phase 1: Identify potential problems in existing databases through an extensive query analysis
- Phase 2: Determine the extent of problems through sampling and data mining
- Phase 3: Prevent reoccurrence through portal application and implantation of other systemic improvements
Why is it important?
This systematic approach identifies anomalies in data, potential fraudulent activity (asset misappropriations and billing schemes), bribery/corruption, and similar financial fraud. It also results in identifying weaknesses in internal controls, the on-boarding of vendors, and need for standardization and training.
Contact us today and allow us to assist you in identifying what is hidden in plain sight!
What you don’t know can and will come back to haunt you.
Litigation Support
What is litigation support?
Litigation support is the process of providing consultation and support services to attorneys in regard to current and pending cases. Litigation support services range from the research and documentation of facts before a case comes to trial to determining damages once a case has been tried.
At Palmar Consulting we have a vast and diversified background and experience in assisting the litigation community in complex financial analysis for cases involving shareholder & partner disputes, investment fraud, divorce cases, fraud and corporate corruption cases, construction claims, and many other areas.
Contact us today and allow our team of professionals to assist you!
Vendor Vetting
What is Vendor Vetting?
The process of examination and evaluation, generally referring to performing a background check and analysis of the organization and its officers and employees in order to verify if any conflict of interest exists or determine pertinent information prior to engaging a vendor.
Why is it important?
Businesses must obtain as much information as possible to make informed decisions before engaging a vendor for services. Fraud losses are dollar for dollar; therefore, it is much more cost effective to employ a fraud deterrence program.
VETTED.®: What is it?A web-based vendor risk management solution providing capabilities for pre-emptive credentialing, forensic analysis, and relationship discovery of vendors allowing control to help prevent fraud, collusion, and other sophisticated schemes. |
Objectives:
- Ensure clients conduct business with only reputable, qualified, and financially stable vendors that present no conflict of interest with the client.
- Vendor credentialing maximizes competition while improving vendor performance.
Benefits:
- A tool for clients to manage which vendors are used, thereby adding another layer of controls to minimize financial risk.
- Allows clients to modify contract and/or payment terms with vendor.
- Provides another avenue to identify opportunities for vendor aggregation of spend and related savings.
- Look up databases for end users which classifies vendors by service type.
- A portal whereby vendors may update their company information.
What are you going to do about it?
Don’t remain in the dark!
“Cognitive researchers find that even when people are provided information on the likelihood of fraud, they tend to ignore base rates.” - Fraud in Houses of Worship
Recognize that occupational fraud exists and no one is exempt.
“In other words, people tend to place themselves into the group that is not affected by frauds instead of accurately assessing if their particular situation is more reflective of the group that will experience a fraud.” - Fraud in Houses of Worship
“No one wants to question good news.’ In the for-profit world, the evidence has shown that excessively high revenues are a much bigger red flag for fraud than excessively low revenues.” - Fraud in Houses of Worship
Consider taking necessary steps towards protecting your business by allowing Palmar Consulting Group, Inc. to use their Forensic Approach through utilization of VETTED®.