Forensic Accounting

Need:

A healthcare company was informed by one of its employees that the person in its highest accounting position might have been using the company’s funds inappropriately.  As a result, the client had Warren Whitney’s Cyndy Lowery discreetly investigate whether or not there had been any misappropriated funds.

Read or watch the Richmond Times-Dispatch’s 60 Seconds with: Cyndy Lowery to learn more about how forensic accounting can help businesses and organizations.

Service:

Cyndy investigated the client’s finances and records, and took time to understand how the company was run.  Cyndy:

• Used the Quickbooks audit trail to look for transactions that had been changed, and by whom.
• Checked various files and information that should have cleared the bank and determined whether or not the information had actually cleared as recorded in the accounting records.
• Inspected bank statements that had cleared and compared them to what was recorded in the company’s records.
• Identified the activity on the client’s account that actually happened and compared it to what was reported.
• Compiled all the evidence necessary to get a criminal conviction for the accounting employee, and a full reimbursement from the insurance company.
• Identified weaknesses in the system that allowed misappropriation of funds to go undetected.

In addition, Cyndy helped hire new accounting staff so the client would have adequate staffing for a company its size.  She proposed a redistribution of responsibilities to ensure that the client had the proper internal controls to help prevent future accounting issues, and trained and cross-trained the new staff.

Result:

By researching and investigating the client’s financial documents and redoing the bank reconciliation and proof of cash documentation, Cyndy was able to identify the client’s accounting issues.  Cyndy’s detailed report helped convict the original accounting employee of embezzlement and the individual was sentenced to time in prison.

Before Cyndy’s service with the client, the company’s managers did not have a clear picture of the company’s finances.  However, Cyndy’s work allowed them to have timely access to accurate information, and to know the true state of the company’s finances.