The Role of Forensic Accounting in Addressing Suspected Employee Fraud: A Case Study

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A company discovered extensive misuse of employee expenses that had been occurring over the past five years. An employee had been using company funds to pay for personal expenses, including flights, cars and rent payments, for themselves and their family members.

FD’s Approach

Frazier & Deeter (FD) was brought in to provide a clear understanding of the financial impact and the details of what had transpired during that period. Our team worked with the state district attorney and detectives, presenting findings and a comprehensive report that could be used as the basis for legal action. FD’s involvement helped ensure the accuracy and objectivity of the findings, which were crucial in supporting further legal and organizational steps.

Outcome

Through FD’s assistance, the company was able to address the financial misuse and take steps to prevent further issues.

Internal Controls: The primary factor that allowed this misuse to go undetected for so long was the absence of strong internal controls. Expenses were approved without proper oversight, or in some cases, never approved at all. Implementing a solid framework of internal controls could have prevented some of these transactions from slipping through.
External Expertise: The case highlights the importance of bringing in external experts, like Frazier & Deeter, for sensitive investigations, especially when litigation is involved or possible.
Opportunity for Improved Controls: In addition to uncovering the fraud, FD provided valuable recommendations for implementing stronger internal controls, preventing future misuse and ensuring a more secure financial environment moving forward.

How FD Can Help

If you’re concerned about suspected fraud or need expert assistance in uncovering financial misconduct, Frazier & Deeter’s forensic accounting services can provide the clarity and insight you need. Contact us today to learn how our team can help you investigate financial discrepancies and protect your business.