Post by Admin on Oct 15, 2013 18:07:29 GMT -5
Cross-post form AnonNews
August 29, 2013
I was wondering if a record request can include,checking our reserves in the bank accounts.
The reason for this is that in 2 other cases in communities ,the management company was spending reserves without boards knowledge.
The auditor is only as good as the information he receives.
The information on management paper means nothing.
The monies in the bank is what applies
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Somehow the words FRAUD and EMBEZZLEMENT keep coming to mind. Would anyone know where to start with a Criminal Investigation ?
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August 30, 2013
What I think you are referring to is a specialized type of audit; -"forensic audit" - which differs greatly from the general annual audit. The forensic audit is specifically looking for "irregularities" and other accounting mischief.
This is area that has always perplexed me ie how to look around the corners of "financials" to identify mishandling/misreporting etc. only gives a derived report and never a complete one that makes any sense. BOD has always resisted very reasonable requests to provide meaningful, easily understandable financial reports.
Where would I start?
With a glass of merlot.
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September 4, 2013
Because of all the comments somewhere above involving fraud, embezzlement, etc., I have put together a rough list of items that could signal accounting wrongdoing:
1) Assets are overstated and/or liabilities are understated in order to make a business appear financially stronger than it really is.
2) If an employee/organization alters/destroys/defaces any account or presents accounts from an individual or organization so they do not reflect their true value or the financial activities of that company.
3)Submitting inflated expenses claims.
4) Falsifying accounts in order to steal money.
5) Using false accounting methods to cover losses through fraudulent activities.
6) Not allowing full and complete access by stockholders/shareholders of accounting records; obvious lack of transparency.
These are just a few situations that could be uncovered if searching for fraud or embezzlement; there are others...
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September 4, 2013
Yes, forensic accountants look for these and other "signals" when doing a forensic audit; which is what I truly believe SLohA needs at this point.
____________________________________________________________
August 29, 2013
I was wondering if a record request can include,checking our reserves in the bank accounts.
The reason for this is that in 2 other cases in communities ,the management company was spending reserves without boards knowledge.
The auditor is only as good as the information he receives.
The information on management paper means nothing.
The monies in the bank is what applies
__________________________________________
Somehow the words FRAUD and EMBEZZLEMENT keep coming to mind. Would anyone know where to start with a Criminal Investigation ?
___________________________________
August 30, 2013
What I think you are referring to is a specialized type of audit; -"forensic audit" - which differs greatly from the general annual audit. The forensic audit is specifically looking for "irregularities" and other accounting mischief.
This is area that has always perplexed me ie how to look around the corners of "financials" to identify mishandling/misreporting etc. only gives a derived report and never a complete one that makes any sense. BOD has always resisted very reasonable requests to provide meaningful, easily understandable financial reports.
Where would I start?
With a glass of merlot.
____________________________________________
September 4, 2013
Because of all the comments somewhere above involving fraud, embezzlement, etc., I have put together a rough list of items that could signal accounting wrongdoing:
1) Assets are overstated and/or liabilities are understated in order to make a business appear financially stronger than it really is.
2) If an employee/organization alters/destroys/defaces any account or presents accounts from an individual or organization so they do not reflect their true value or the financial activities of that company.
3)Submitting inflated expenses claims.
4) Falsifying accounts in order to steal money.
5) Using false accounting methods to cover losses through fraudulent activities.
6) Not allowing full and complete access by stockholders/shareholders of accounting records; obvious lack of transparency.
These are just a few situations that could be uncovered if searching for fraud or embezzlement; there are others...
________________________________________________
September 4, 2013
Yes, forensic accountants look for these and other "signals" when doing a forensic audit; which is what I truly believe SLohA needs at this point.
____________________________________________________________
