Fraud is a leading cause of business losses. In its 2008 Report to the Nation, the ACFE estimated that the typical U.S corporation loses 7% of its revenues to fraud with a median loss of $175,000.
This highlights the necessity of making a fraud prevention, detection and resolution program a part if any comprehensive security plan. And makes this program a prudent investment which will can return many times its cost to your bottom line.
Your anti-fraud program begins with a thorough review of your current business practices. We carefully analyze the checks and balances in your current systems and assist you in closing the gaps. Effective policies and procedures together with and employee training and continuing financial vigilance reduces your exposure while increasing the confidence of management and other stakeholders.
Because fraudsters are trusted employees and usually first time offenders, detecting fraud requires careful analysis of your data. At ISC, our anti-fraud team includes which includes CPA’s investigators, and Certified Fraud Examiners as well as experts in computer forensics and security.
Everyone would like to think that they could trust their business partner(s). When you have partners, your relationship is similar to a marriage (and we all know how many of those fail due to a breech of trust).
You may consider it to be bad faith to investigate your existing business partner. Your relationship may be productive and great. We hope that it is. However, it would be much better to know that an issue exists before the relationship, and the business, deteriorates so far that it is beyond repair.
Maybe your partner is going through a bad financial time brought on by themselves or by circumstances beyond their control. If you were aware that your partner had been continuing to take out additional mortgages on their house, or that they had begun to stockpile huge amounts of credit card debts, then maybe you could better prepare for the inevitable disaster that will occur when the creditors come calling.
If your business if debt financed, the lending institution could call the note or refuse to renew the line of credit if one of the owners credit scores or solvency dropped below levels that they consider acceptable.
If your partner is going down the tubes, and it is beyond their ability (or desire) to stop the avalanche, then you need to know that. Maybe you can arrange to buy them out before their situation destroys the business and your personal and financial life.
If one of the owners is undergoing significant personal financial difficulties, then the chance that they will steal from the business (which is stealing from you) becomes very large.
If your employees get wind that your partner is stealing from you and that you are either unaware of it, or are ignoring it, then they will loose all respect for their jobs. Worst, the borderline employee will begin to take some for themselves.
Be up front with each other; write it into your policy manual that periodic inspections of the owners will be performed. Implement controls and reporting mechanisms will help reduce the opportunity for theft to occur. Do this before there is an issue.
ISC has the resources of a CPA to investigate the business finances. ISC can perform forensic investigation of your computers and software to help assist. ISC can also help investigate the owner. Click here to find out more about Corporate Investigations.
Information Security Consultants, Inc will assist you in conducting due diligence. Our extensive array of database resources allow us to provide you with information regarding an individual’s identity; including all previous residences, businesses, judgments, lawsuits, civil records, bankruptcies, as well as criminal records.
In today’s global economy, business relationships are becoming increasingly complex. Timely and accurate intelligence is critical when initiating financial transactions or when evaluating new or potential business affiliations. Public information is often inaccurate, or outdated. Information Security Consultants, Inc has the expertise and resources to investigate any person or entity.
Whenever our clients are evaluating purchasing or merging with another business entity a financial investigation of the target business is absolutely necessary. Click here for additional information on financial investigations.
Our investigative services have allowed our clients to gain a significant edge over their competitors while minimizing their risk exposure. ISC can provide clients and their attorneys with thorough investment intelligence, in-depth company research and thorough evaluation of company management teams. Our services provide descision makers and their advisors with crucial business intelligence and strategic performance advantages.
Prior to signing a letter of intent to acquire, merge with or be acquired by another business entity, you need to investigate the finances of that business. If you have already signed a letter of intent, you need to immediately engage a CPA to investigate the finances of that business and you better completely understand the timelines that the CPA has to have to perform that financial investigation within.
ISC has an investigative CPA that can perform the financial investigation that is required.