What is a Forensic Audit?

A forensic audit is the application of investigative accounting through knowledge, skill, and experience to identify and document the existence of fraud or malfeasance in financial records.

How do I know if I need a forensic audit?

A forensic audit should be performed when you believe that the accounting records of a business is not reflective of the true financial position of the company. This could be the result of hidden income / assets or overstated expenses.

In divorce situations, a forensic audit may need to be performed if a business is owned or if personal financial records indicate hidden assets.

What results should I expect from the forensic accountant?

The outcome of a forensic audit cannot be predetermined, as forensic accountants are obligated to follow the evidence wherever it may lead. Upon completion of the engagement, a written or oral report, as appropriate to your needs, will be provided. The report will summarize the findings of the audit and identify the evidence and supporting documentation upon which those findings are based.

What is a business valuation?

A business valuation is the process of determining the economic value of a business entity. Generally, business valuations are performed using one or more of three recognized approaches: the Income Approach, the Asset Approach, and the Market Approach. Depending on the facts and circumstances of the engagement, consideration may be given to all three approaches. In certain situations, however, limited valuation procedures may be performed, as agreed upon by the parties, based on the intended purpose and use of the valuation report.

When would a business valuation need to be performed?

A business valuation may be performed for a variety of purposes, including mergers and acquisitions, succession planning, the sale of a business, insurance-related matters, shareholder buyouts, and other strategic or financial transactions. The valuation provides an objective assessment of the economic value of the business and can assist stakeholders in making informed decisions.

Business valuations are also frequently conducted in connection with forensic accounting engagements. In cases involving shareholder, partner, or ownership disputes, the parties may reach a point where continued operation of the business together is no longer feasible. Under such circumstances, it is often appropriate for one owner to acquire the other's interest in the business. A business valuation can be performed to determine the fair value of the ownership interest and provide a basis for negotiating or resolving the buyout.

What will a Forensic Audit cost me?

We charge $300 per hour for forensic services. For expert testimony (court or depositions) we charge $450 per hour. We require a signed engagement letter and a retainer to begin our work.

What will a business valuation cost me?

Several types of business valuation reports are available, depending on the purpose of the engagement and the level of analysis required. In certain circumstances, a Calculation of Value may be appropriate. This type of engagement is based on valuation procedures that are agreed upon by the client and the valuator and generally involves a more limited scope of work.

In other situations, a Conclusion of Value may be required. A Conclusion of Value engagement involves a more comprehensive analysis of the business and consideration of all relevant valuation factors to arrive at an independent valuation opinion.

Because the scope, complexity, and reporting requirements of each valuation engagement can vary significantly, a standardized fee is not practical. Business valuation engagements are generally performed on a flat-fee basis, with fees starting at $4,500. A customized fee proposal can be provided following an initial consultation and assessment of the engagement requirements.

I need a forensic audit or a business valuation, what do I do now?

You can call and discuss your situation with our staff and if an in person or electronic meeting is needed we can arrange for that.