Planning a Forensic Accounting Investigation

You suspect there is fraudulent activity taking place in your business… what steps should you take?
​When a business owner or organization suspects fraudulent activity from a partner, manager, or employee, one of the most crucial steps is to properly plan a forensic accounting investigation. This not only increases the chances of success in any future litigation but also maximizes the likelihood of recovering assets from the fraudster. Knowing how to plan for a forensic accounting investigation is a powerful tool when fraud occurs. More importantly, having a strategic plan in place even before fraud is suspected can be even more powerful.


When should you plan a forensic financial investigation?The answer is to plan for a forensic accounting investigation well before it occurs. Forensic accounting experts, such as our Trace Forensic Experts, can help business owners or key players in an organization plan ahead to know what to do and how to do it before their organization is hit by fraud. If you think fraud won’t happen to you, perhaps now is the time to rethink that.


According to the latest report from the Association of Certified Fraud Examiners (ACFE), $3.1 billion was lost to fraud. Median losses from fraud cases analyzed in this year’s report increased by 24% compared to the 2022 Report to the Nations, with the COVID-19 pandemic potentially playing a role. Based on their findings, CFEs estimate that organizations lose 5% of their revenue to fraud each year.


The sheer frequency with which organizational fraud occurs makes it difficult to measure. Organizational fraud ranges from time theft and the skimming of revenue to the misappropriation of assets. Fraud often continues undetected for years, as there is a tendency for fraudsters to start small, increasing the amount and severity of their actions over time as they grow bolder.


Even a simple red flag, such as an employee not taking vacation time, or a single tampered check or financial document misstatement, can lead to evidence of a greater fraud scheme. Therefore, a key aspect of detecting fraud is to draw on the expertise of forensic experts, such as Trace Forensic Experts, as soon as any fraudulent activity is suspected. Forensic accounting experts are trained and experienced in seeing the signs of possible fraud and can assist the organization in answering the “who, when, why, where, and how” of what occurred.


Where can you find expert help to conduct your investigation?Our TRACE Forensic Experts are elite Certified Fraud Examiners (CFEs), Certified Public Accountants (CPAs), Chartered Accountants (CAs), Data Scientists, eDiscovery experts, and former law enforcement investigators.
Our clients include law firms, audit committees, general counsel, chief compliance officers, internal auditors, chief financial officers and controllers, business executives, and local, state, and federal governments.
Please do not hesitate to reach out to us whether you are looking to assemble a professional investigation team or if you would like to schedule a consultation on how to set your organization up for success with investigation plans and protocols.