In federal court, the admissibility of expert testimony is governed by the strict Daubert standard. The U.S. Supreme Court decided this landmark case in 1993.Read More
When it comes to fraud detection, the amount of available data in the company’s paper and electronic records can seem staggering. Fortunately, the field of data analytics continues to advance, arming qualified financial experts with the tools to mine massive mounds of data effectively and efficiently. Association analysis, outlier analysis, and cluster analysis are among the detection techniques that have rapidly gained footholds in today’s data-driven world.Read More
In Athlon Sports Communications v. Duggan, the Tennessee Supreme Court addressed whether the Delaware Block method was mandated when valuing shares in appraisal rights actions. To determine the appropriate method for determining “fair value,” the state court looked outside of its jurisdiction to Weinberger v. UOP, Inc.Read More
Financial statement manipulation is the costliest type of occupational fraud. The 2018 Report to the Nations published by the Association of Certified Fraud Examiners found that the median loss from financial statement fraud was $800,000, compared to median losses of $114,000 for asset misappropriation and $250,000 for corruption.
With any type of fraud, the sooner it’s detected, the more likely losses can be mitigated. Here’s a tool to help clients quickly assess the likelihood of earnings manipulation.Read More
Under Rule 702 of the Federal Rules of Evidence, an expert witness may testify if scientific, technical, or other specialized knowledge will help a judge or jury make sense of evidence or understand facts. A 1993 U.S. Supreme Court case – Daubert v. Merrell Dow Pharmaceuticals Inc. – put this rule to the test, affirming judges’ roles to act as gatekeepers against “junk science.”Read More
The wording of a Coinsurance commercial property policy effectively asks a simple question: Is the Required Insurance value greater than the Limit of Liability? If the answer is “yes,” there is work to do to impose a Coinsurance penalty. If the answer is “no,” the loss will be paid without penalty, subject to deductibles, limits and so on.
Mergers and acquisitions (M&A) transactions rarely turn out precisely as the parties anticipated when they negotiated the deal and signed the documents. This can cause disputes over purchase price adjustments, representations, warranties, and earnout provisions. To determine the liability and computing damages that occur from these disputes, you need a combination of business valuation, forensic accounting, and economic analysis techniques.Read More
From the Desk of a Forensic Accountant
"Simplicity is the ultimate sophistication.” – Leonardo da Vinci
Since my 15 golf handicap will not allow me to play alongside Rory McIlroy on Sunday at The Masters, I have fallen in love with my life as a “simple” forensic accountant. Simplifying and effectively communicating results is one of the most rewarding aspects of a forensic accountant’s career. In a recent survey performed by the AICPA, over 100 attorneys overwhelming responded to the question, “What are the most frequent reasons why forensic accountants are ineffective?” as:
Poor Oral Communication Skills
Inability to Simplify Information