What is a Forensic Audit?

A forensic audit is the application of investigative accounting knowledge, skills, and experience to 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 are not a reflection 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 is a business valuation?

A business valuation is a method to determine the economic value of a business entity. There are generally three approaches to perform a business valuation; Income, Asset, and/or Market approaches. In some valuations all three methods must be considered but in others limited procedures can be agreed to based on the use of the valuation report.

When would a business valuation need to be performed?

A business valuation can be done because of a merger and acquisition, to prepare for a sale, for insurance purposes, or buyout values.

A business valuation may need to be performed in a forensic accounting engagement. Often business owners when a dispute happens have gotten to a point of irreconciliation and it is best to have one of the partners buy the other out of the business. A valuation can be performed to determine that value.

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.

What will a business valuation cost me?

There are different valuation report types, in some situations a calculation of value can be done which relies on procedures agreed upon by you the client and the valuator. In other situations a conclusion of value may be needed which requires a more thorough review of the business to be performed. Because of the variance in the reports a one-size fits all price is difficult to identify but they are billed at a flat rate starting at $5,000.