Category Archives: PSA

Something’s Not Right

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When I was just heading into my teenage years, something was not right. Not with me, but with my mother. It was unsettling for me and then miserable. It was difficult enough to be heading into my teenage years but my mother was not helping by being off.

First of all, she began to act out of character. She would come home from work and ask for a glass of water with lots of ice in it. You may not see anything wrong with that, on the face of it, but it was plenty odd because my mother never drank glasses of water with lots of ice in them. And now she wanted a glass every night. To make things even more stressful for us, each glass was closely examined and if it was not perfect – not enough ice, water somehow looked cloudy, the glass was not perfectly polished – one of us kids would have to get a new glass and make sure that it was perfect this time.

Then there was the language. My mom started using new slang. For all I know now, she may have started hanging out with a new lunch buddy and picked up some phrases from this new friend. But, along with the water, this new language mom was freaking me out. It was truly odd. But the breaking point came, for me, one Saturday morning. I was following my mother around the house and she watered and spoke to her many, many plants. This was totally in character so that gave me some comfort and was likely the reason why I was hanging about with her that morning. Then I noticed that her dress didn’t quite fit. It was tight on my mom and that was, once again, out of character for her. What was going on?

That thought was still with me as I spent time alone that afternoon. What was going on? Well, after an afternoon of pondering, I had narrowed it down to two options. Either my mother was having an affair or she had been abducted by aliens and they had left an imposter alien in her place. My two options seemed to be the only options that made sense to me at the time – I had friends at school whose parents were going through divorce. Something about our conversations made me think that divorcing parents did not act like themselves. But, if it wasn’t divorce, it could only be aliens. I blame Star Trek for getting me to believe that my mother could be abducted and a poor replica, that wasn’t quite the same size and betrayed itself with its weird speech patterns and love of ice, be left in her place. Both options were devastating for me; either way I was losing my mother and that filled me with despair. I even cried a little that afternoon.

Fortunately for my state of mind, just that week, as though she knew what was going on with me, my mother broke the news. She was pregnant (some may say I was sort of right about the alien in her body). What a relief!

It turns out that, despite all the clues that I noticed, I came to a completely wrong conclusion about what was causing the changes in my mother. Fortunately all my wrong conclusions led to was an afternoon of sadness and tears. In the work place, the consequences of taking data, red flags and other clues to incorrect conclusions can be far more costly. A classic example is that of Rita Crundwell, who defrauded the city of Dixon of over $53 million. The people who worked with her saw that she had a growing stable of quarter horses and was often traveling far and wide with these horses. They assumed that the horses paid for themselves and more and this was how she could afford to keep them. People in the horse world, who knew that horses cost more than they made, thought that she had some kind of trust fund that paid for her extravagant lifestyle. When Rita would not let anyone do her work, or even collect her mail, they thought she was being a great treasurer who diligently controlled her city’s budget. No one saw all the clues and thought she was embezzling money.

If someone was paying attention to the clues and knew how to analyze all the red flags that Rita Crundwell left in her wake, her fraud would never have lasted for the two decades that it did. If, for instance, the city had taken on the services of a forensic CPA to analyze, design and implement control systems and to help them with fraud prevention and deterrence, they may not have lost over $53 million to Crundwell.

This is an excellent reminder of how important it is to have a CPA, with experience and qualifications in financial forensics, to analyze and assess your business’s operations and finances to see what clues are there and what those clues really mean. You may notice that things are amiss, but how willing are you to accept how expensive coming to the wrong conclusion can be for you?

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If Lost… Then What?

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At the end of May, I was on my way to an event, when a flash of pink on the sidewalk caught my attention. I stopped and realized that I was looking at a small square of leather. I bent down, picked it up and turned it over in my hands. It was a wallet with a MetroCard, some credit and debit cards and a driver’s license in it. I pulled out the license, looked it over, and walked over to the restaurant that was a few feet away from where I had just found the wallet. I must have made a few people nervous, staring at them and then down at the license, to see if anyone there resembled the photo. No luck. I then pulled out my phone and tried a few quick searches, online, to see if I could figure out how to contact this woman. Her name was more common than I imagined; several options came up and none appeared to be her. Yes, her license had an address on it but, the license had been issued several years earlier and people in New York City can move around quite a bit, in search of amenities such as a view, an elevator or affordable rent. As I was running late, I decided to go to my event and put my search off until later. On my way, I spotted a parked police car. I got excited, thinking that I may be able to hand over the wallet, but the excitement faded when I got close to the car and found that there was no one sitting in it.

When I got home and had more time to do so, I hunted down the woman whose wallet I had found and delivered it to her. Even if she had cancelled her cards, I am sure she was happy to get her stuff back – who knows maybe her MetroCard still had 29 days of use left on it. That experience reminded me of a time, years ago, when someone stole my handbag at the airport. I was livid that someone had invaded my space and even stood yelling, in the terminal, for the thief to just take my cash and give me back my stuff. Suffice to say, that did not happen. I did, fortunately, have a kind gentleman give me money to get the train back home. However, a few weeks later, my phone rang and it was the airport, calling to tell me that my bag had been found. They had been able to contact me because I happened to have a dry-cleaning slip in my wallet, and my phone number was on it. I was lucky that I had that slip in my bag but these two events really got me thinking about recovery plans, not just in business, in other aspects of our lives.

With a wallet, for instance, you can keep a business card in the wallet, or put a small card in your wallet with an email address and/or phone number so that, should you be unlucky enough to lose the wallet and a kind stranger picks it up, they can contact you and figure out how to get it back to you. It is an easy thing to do and could be hugely useful. It doesn’t even have to be your usual email address, if you have fears about your inbox being inundated by unwanted email, you can create an email address that you keep for moments such as this.

We never think that we will either lose our stuff or have it stolen from us but it can happen to any of us. It can be personal or it can be a business loss, such as a system crash, or theft and, in all cases, having a recovery plan will go a long way to make recovery less stressful and less expensive. If, at this very moment, you lost everything on your computer, what would you do? Does the thought give you heart palpitations because you would lose very important data, with no way of getting it back? Would you have to shell out a lot of money and spend valuable time working to try to recover everything? Would you wonder whether or not your business could survive such a loss? If this thought is a scary one to you, you should be thinking about sitting down with trusted professionals, to create and put a comprehensive protection and recovery plan in place. You should review various scenarios, even if you think it wouldn’t happen to you. Things to consider when doing this:

  • Are you backing up your data on a regular basis? Automating this process is a great way to make sure that it happens – you don’t want it to all depend on your remembering to do it.
  • Where are you keeping your backups? Do you keep a backup offsite and unconnected to your current system? You don’t want your backup corrupted, should your system go down.
  • Are you checking the integrity of your backups? It isn’t helpful to think you have been creating backups and find out, when you need the backup, that the process was not occurring.
  • Now that you have backups, do you have a recovery plan? Do you know what you are going to do should things go awry? Does your staff know? Do you have the plan in writing and in a space where it can be easily accessed? Have you trained your staff in this recovery process?

There are people who are well-trained in helping you create a backup and recovery plan and that can start with your CPA. You want someone who has experience and knowledge regarding best practices that are practical, useful and effective.

We are humans who work with technology that we have built and we must, therefore acknowledge that we are not infallible and we must therefore create, review and update our contingency plans. And that plan can never just be relying on the kindness of strangers.

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The Best! The Worst!

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Today is marathon Sunday in New York City and, for years now, I have lived less than a block from the marathon route. It is one of the most exciting days of the year for me and I love walking down to the end of my block to join the over one million spectators who line the 26.2-mile route to cheer on the runners. All too often, New Yorkers are thought of as people who just don’t care about others. Per the stereotype, it’s just keep out of our way, don’t look us in the eye and don’t do anything that will slow us down and we won’t have any problems. Marathon day is a day when I am reminded that the city is a city full of people who do things like come out to cheer and high-five strangers as those strangers test their bodies and spirits. I love it.

There are moments, such as the marathon, that bring out the best in people. Disasters, as sad as they may be, also bring out the best in people. People come out and give time, money and other resources to help those in need. Tragically, disasters also tend to bring out the worst in some people. Some among us see disasters as a great opportunity to take advantage of others, for personal gain. Some of the fraudsters are blatant in their unscrupulous ways because they are targeting the desperate among us. A current example is the migrant crisis in Europe, where refugees, seeking to escape dangers at home, will give up all their resources in the hopes of reaching a safer place. Instead, some hand over money to greedy criminals who then lead them into more danger and, sometimes, even death.

Other fraudsters are more slick in their strategies to profit from the suffering of others. In recent months, natural disasters such as fires and tropical storms, have left many in the United States needing assistance. Just in October, while communities in South Carolina were struggling to recover from flooding damage, warnings were being sent out because of an influx of fake charities. These counterfeit charities, preying on the generosity of those wishing to do something to help the displaced and impacted, were taking people’s money and doing nothing to help those in need. Just a couple of days ago in New York, a company agreed to pay a settlement of $700,000 for pretending to collect secondhand clothing to help charities. Instead, this company sold the clothing, paid almost nothing to the charities and made profits of over $10 million dollars, it is estimated.

Because, even in situations where we should be helping others, there are those who are looking to help themselves at the cost of those around them, it is important to be vigilant.

  • It was Halloween yesterday and parents were checking to make sure that the treats that their kids collected were safe for consumption. Yes, people may appear to be doing good things, but it is only smart to make sure that everything is above-board.
  • Even though it may seem like a drag, check up on who you are giving your money or time to.
  • The name may sound familiar, but make sure it really is who you think it is.
  • If you feel uncomfortable about something, it is okay to say no. There are many opportunities to give back to those in need and you will find the opportunity where you are sure that what you are doing is benefitting those who need it.
  • Don’t give your personal information to anyone.
  • If you believe that you have been scammed, contact your local authorities and report it.

Giving is a vital part of what makes us communities. Just make sure that you are giving to the right people and not the unscrupulous scammers around. You know, like that obnoxious person in the neighborhood who decides that they just have to cross the street as the runners are passing by. Don’t give that guy the time of day.

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While We Are Making Plans

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Because I live in the Northeastern part of the United States, I have become one of those people who lives for the brief summer months. There are only a few brief months of warmth and sunshine (and, often, humidity) in which to have a fun life. There are outdoor shows, there is the beach, there are picnics and that’s just a small sliver of all that needs to be done before the cold and darkness return. In my case, I had also signed up for a half marathon, to be run in the middle of October. Summer was my chance to keep on running and build my endurance and distance. When I run, I run on streets and have to deal with cracks in the sidewalk, people getting in my way and traffic. I am always on the lookout to stay safe and not hurt myself. So, in addition to all the stretching and foam rolling (never enough) that I do in order to prevent injury, on top of all of the careful calibration of distance that I do so that I don’t hurt myself by doing too much too soon, I am also keeping a watchful eye on every step that I take in order to keep myself safe and sound during my run.

Well, on a bright and sunny Sunday morning, at the beginning of August, I stepped out of my apartment building and into the parking lot, armed with a whole lot of recycling to put out. The next thing I knew, I had tripped over something (turned out to be a concrete block) and I was stumbling. The recycling flew out of my hands and the first thought that I had was, “this better not mess with my running”. In an attempt to break my fall, I jammed my leg into the ground and a sharp pain shot up my leg. I crumpled, in my mind, elegantly to the ground. It turns out that for all my measures to protect my body, all it took was taking out the trash in order to fracture my knee. I ended up with my knee in a brace and using a cane (that I still have). Throw in a surgery that I had in September and it turns out that this summer was not the summer I had imagined at all. An acquaintance said to me that life is what happens while we are making plans.

Most people business owners, similarly, spend a lot of time and invest a lot into protecting their businesses from most expected challenges. Depending on the size and complexity of the business, this will range from control systems to detect and prevent fraud and waste, to various reports that business owners and management use to monitor how the business is doing. The question that stands though is, what are business owners and management doing to deal with the unexpected or the events that they hope will never happen? Does the business have a disaster recovery plan? Has the business taken steps to encourage tips that will help uncover weaknesses in control systems and catch fraud and waste? Does the business know what it will do when fraud and waste are uncovered? Yes we make plans and take precautions, but are we ready to deal with what happens when the unexpected happens? Are we ready for, you know, life?

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Checking Up

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Several years ago, I was working on an assignment that had me flying out to Boca Raton, Florida, every Monday and returning to New York City on Friday night. It was great because it was a brutal winter in New York City and pleasantly warm in Boca Raton. It was terrible because it was close to impossible to get anything done over the weekend. One week, I had to admit that there I needed to get one of my teeth looked at. It had been causing me some pain and I knew I had to sort it out before it started hurting a lot. My challenge was to find a dentist who took patients on weekend days and who I could get to easily. I found one online and went in to see him on a Saturday morning. He determined that I needed a filling fixed and he got to work. What I remember about that day is how incredibly painful it was and how unsympathetically the dentist kept ordering me to “be strong”. I was traumatized – so much so that I did not go anywhere near a dentist’s office for years after that. I knew I should, but the memory of the pain and a dentist who was in need of a heart kept me away. Other aspects of my body were very well taken of; I went to my annual physical and that was always a pleasure, compared to my dental disaster. I brushed my teeth but, other than that, they were pretty much on their own.

One nights, I fell asleep while sucking on a throat sweet and, the next morning, I woke up feeling as though my teeth were about to fall out of my head. I was in a panic; I was too young to be toothless. I was desperate and looked up dentists located close to my office. Thankfully, I was able to find a dentist, a few blocks away, who was able to fit me in that very day. As he examined me, a poem from my childhood, “Oh, I Wish I’d Looked After Me Teeth” ran through my head. Fortunately, this time around, I get to keep my teeth. My dentist was a great guy who doesn’t believe in causing pain and suffering and NEVER says to me, “be strong”. I did, however, have to go through a series of appointments to repair the damage that had accumulated over the years that I had avoided the dentist, dentist I could have avoided. I have not missed an appointment since, although I get nervous when the machine turns on, even just to polish my teeth.

Like my teeth, a business needs regular checkups to maintain its financial health. Yes, a lot of companies review their financials on a monthly or quarterly basis, but how many are assessing their control systems and taking steps to update and analyze how they prevent and detect fraud? The fact that the median length of a fraud is 18 months before it is detected and that many frauds can last many years as in the cases of Bernie Madoff and Rita Crundwell, to name a few high profile cases, implies that these steps are not taken often and rigorously enough. No one really thinks that it will happen to them and some people think that their finance department, accountant or auditor will keep them safe from fraud. This is because they do not fully understand the roles and duties of their auditors and accountants. Other people don’t want to spend the money on fraud prevention and detection. However, when you start thinking that Rita Crundwell stole over $54 million and a quick search of the internet brings up many other recent cases of embezzlement of millions of dollars that have been discovered. There are many more that either have not been recorded or are of lesser amounts.

Think about this:

  • Fraud goes on for an average of 18 months but many go on for much longer.
  • Usually fraudsters start out stealing a little money but as times goes on and they are not caught, the amounts stolen grow and grow and grow
  • The knowledge that a company has allowed theft to go on under its nose for years can negatively affect its reputation, leading people to believe that it may not be a safe and ethical place to do business

These are just a few things to think about when it comes to detecting and preventing fraud in your company. It only makes sense to get a qualified Forensic Accountant, Certified in Financial Forensics to assess and evaluate your companies systems in order to beef up your fraud prevention programs and also, perhaps to detect possible fraud? Now, I learnt a very painful lesson before I started to take care of my teeth. Do you want to learn a hard, and possibly expensive, lesson before you take proper care of your business?

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All For Love

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“Valentine’s Day; red roses
It’s said that some have died for love.
In North Clark Street, Chicago
They died for money…”

It was with those words, uttered by Laurence Olivier, on a Paul Hardcastle song about greed, that Al Capone first fascinated me. It started with that tale of the St. Valentine’s Day Massacre – “It’s a good day to die,” the gangster laughed in a scene in the video – and it continued as I learned more about his legacy as a famous gangster. I mean, as perennially single as I have been most of my life, I have been known to don black clothing and disdain on February 14th, but to shoot a bunch of people on that day? That just seemed a little much. You couldn’t wait until the 15th? What kind of person does that? I found out that others were similarly outraged by Capone’s actions and expended a lot of time and energy trying to bring him down.

A few weeks ago, I was reminded of Al Capone when I spoke with Meredith Engel of The New York Daily News. She was reporting on the financial issues faced by those in the marijuana business. Marijuana is legal in some states, such as Colorado and Washington, but is still illegal on a federal level. This dichotomy may lead to confusion on what income is taxable on a state level, where pot is legal, and on a federal level, where it is illegal.

What does this have to do with Al Capone? Well, despite being blamed for the St. Valentine’s Day Massacre, among other murders, and in spite of being investigated for racketeering and his bootlegging business, the authorities struggled to get Capone convicted on his gang-related crimes. However, there was a government agency that he had not seriously considered; the IRS. You see, it does not matter where your income comes from, be it from legal or illegal sources, you have to pay taxes on it.

It doesn’t matter whether you are selling pot or stealing from your boss, if you don’t pay taxes on that money coming into you, you cold find yourself in trouble with the IRS, ranging from interest and fines to imprisonment. Federal agents couldn’t find enough evidence to pin murder on Al Capone, but they were able to use forensic accounting methods to put together enough evidence to indict Capone on tax evasion charges. He was sentenced to 11 years in prison, was fined $50,000, was charged $7,692 in court costs and $215,000 plus interested in back taxes.

Preparing a tax return can get rather complicated. Figuring what deductions, exemptions and credits you are eligible for can be a like navigating a maze. However, the most simple part of the tax return is the income that you start with. If you don’t want to get into trouble with the IRS – REPORT ALL OF IT, regardless of how you came about it.

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That’s Not How It Goes

canine_side-eyeI am a huge sports fan. Huge. It is just about the only time that I tend to watch live television. The drawback, in my opinion, is that I have to watch all the ads on television, even the ones that get on my nerves. It is a sacrifice I am willing to make in order to get my game in real-time but, sometimes, I wonder. We are in the midst of basketball and tax seasons and the two have, apparently, come together to try to give me an aneurism or, at the very least, high blood pressure. You see, there are a variety of tax preparation related ads, declaring that it is time to get the mountains of money due to you and how easy it is to just do it all yourself, while you’re at it. I just hold my head and mutter, “no, no, no, no!”

Ad after ad trumpets that the product advertised will get you the largest tax refund around. So, what happens when you file your taxes and you don’t get a big refund; maybe you don’t get a refund at all? Do you get upset? Do you feel that your tax preparation software or professional has done wrong by you? But a refund is the government paying you back money that you overpaid them in the first place. Getting a large refund doesn’t mean that you lucked out and won the government lottery; it means that, over the year, you sent the government too much money and now the money is sending that money back to you, interest free.

Refund tales aside, there is the matter of how complicated the tax code is, something that even the Internal Revenue Service (IRS) writes about. The 2014 Tax Guide, a publication that the IRS puts out to help guide individuals who are filing their taxes is a daunting 288 pages long and that’s before the references in the guide for further information on the subjects covered. So, I am sure you can begin to understand my frustration when I see ads that imply that preparing a tax return is as simple as baking a cake. It is unclear how long the tax code is currently, but what we do know is that it gets longer and more complicated by the year.

Computer software is incredibly helpful, when it comes to tax preparation. However, it is paramount to keep in mind that the software is a tool and it will not automatically make you an expert, knowledgeable of the ins and outs of the tax code. If your tax return is straightforward, the chances are that you will be okay filing your own return. Say, however, that you have a business; do you know which of your expenses are deductible and which are not? If you are married, and you decide to file separately, instead of jointly with your spouse, do you know what the differences are between the two? What about if you have spent the year speculating, buying and selling assets, or if you gambled a lot and have significant winnings or losses? The software can only work with what you give it and what if the software doesn’t ask you the right questions in order to get as much information needed in order to have as accurate a tax return as possible?

At the end of the day, the IRS holds you responsible for errors in your tax return and the amount of taxes you pay (and what you claim as a refund). The last thing you want is to be hit with a notice telling you that you owe the IRS a bunch of money because, when they do that, they tend to also charge you interest and penalties. Some tax preparers will tell you that they will cover only penalties and interest due to errors on a tax return, but what about the erroneous tax refund that you have already spent? Yup, only you have to deal with that. It seems like the punishment is a lot worse than just messing up a cake recipe, right? So, I’m thinking that getting a qualified professional, such as a CPA, to prepare your taxes might be worth your investment. Don’t go with someone who promises you the largest refund; go with someone who has studied the law and takes continuing education to stay up to date on the intricacies of the tax code and not only how you will be affected federally but also on a state and local level. Yeah, state and local – I didn’t even go into all that. Find someone who knows what they are doing and who can tell you what is going on and why. Or, you could try to tackle the bigger than the bible tax code and do it all yourself. You’ve got time, right?

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Gimme A Break!

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It almost seems a long time ago, but November and December had a great series of holidays that, for some, were leveraged into a week or two of time off. From the conversations that I have had with strangers in elevators, not a single person wished they could have just stayed in the office and worked. The only gripe was the weather (for those of us in the Northeast). Everyone needs time off to recharge and those who tell us otherwise are lying to themselves or to us.

However, for those bosses who don’t care about whether or not their workers are worn out, just as long as they show up, there is a reason to give time off that benefits them – security. You would not believe how many stories I have come across, of fraud perpetrated by employees who rarely took time off and , if they did, it was only ever for a couple of days at a time. The bosses loved them because they were so diligent and always there when anything was needed. It also turned out that these same employees were diligently stealing from their employers. because they were always in the office, they were able to make sure that people didn’t poke around in their work too much. Because they were always in, they were able to steer people away if anyone seemed to be getting close to discovering their scheme. Because they were always the face in the office, they were able to gain the trust of their employers. In this way, they were able to keep watch over their fraud schemes and keep them going on for a long time. I have lost count of the number of times I have heard about how shocked people were when a fraudster was exposed because of how diligent and ever-present that person was.

In theory, it is an admirable thing to have a worker who so loves coming into work that they won’t even take paid time off. However, when you think about it, why wouldn’t someone want to take time off that they are being paid to take? I don’t know about you but I do not have conversations where employees go on about how much they prefer being at work over spending time with loved ones, how much they love their daily commute and wouldn’t trade it for anything, or how they wish that weekends and days off would be abolished so they could spend more time at work. With this in mind, employees who do not want to take time off should be viewed with skepticism.

It is important that employers take advantage of the time off given, in order to perform fraud prevention and detection activities. This is mostly achieved by having another employee do the work of the vacationing employee. This is particularly important if the employee has a financial role or access to assets. A few examples of tasks that should be performed in an employee’s absence are:

  • reconciling the bank accounts;
  • receiving and opening mail, especially correspondence from banks and vendors
  • receiving and processing inventory;
  • disbursing checks.

Nobody likes to do someone else’s work, and that is a plus for a fraudster. But, doing someone else’s work has gotten many a fraudster caught (and often highlights errors and weaknesses). Bank reconciliations have been found to contain fictitious reconciling items. Checking the mail has revealed bank accounts that employees secretly opened and used to divert company funds for their own benefit. A check of vendor statements and payments has revealed payments being made to fake vendors. A lot of benefits are gained by employers when they give their workers time off and use that time to have their peers do the vacationers’ work. Several authorities, including the Federal Deposit Insurance Corporation (FDIC) and the SEC recommend that banks and investment advisors, among others, adopt mandatory two-week vacation policies as a safeguard against fraud. This is an approach that other types of businesses should also consider adopting. Several companies have adopted this policy of a two consecutive weeks off. This gives sufficient time to have other employees perform the tasks of their vacationing colleagues.

There is another benefit to having others do the work of their coworkers, either when that employee is on vacation or by rotating tasks. This is increases the number of employees with knowledge of processes, with all the peculiarities a company will have that are not in the company manuals. I recently read a piece on TheInnerAuditor website about the dangers and risks involved when knowledge is held by one individual in a company. Invariably that person’s work is never checked (who would know how to) and no one ever knows when this special person makes an error or, even worse, is committing fraud. In addition to this, should this person quit, retire or fall ill, the company will find that has no idea how to do certain things or even where to find the information required for the task. This is because it has been easier to rely on this one brain trust than to learn what the trust knows. And the brain trust enjoys the power and authority given to them because they are always the smartest person in the room. I have written before about how notes on systems and processes may not include every single piece of information. Having others cycle through tasks is the best way to be sure that others know how to perform the tasks and that more than one person knows what is going on.

So, bosses, go ahead, give your employees a break, a real break. They will be happier and likely more productive for it and it will benefit your company. it will improve your chances of detecting and deterring fraud and it will help prevent errors. Finally, it will make sure that you don’t have to depend on one person to keep the business running.

And, workers, tell your bosses to give you lots of time off and remind them to, please, have someone do your work while you’re away. Assure them that you are not doing this for yourself. No, this is part of you looking out for their business.

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Ripped From My Headlines?

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“Aren’t you excited that they’re making a show about you?” This is how my friend, Tabeel, greeted me this morning.

A show about me and I haven’t been telling you all about it? Well, let me tell you, I’m as surprised as you are, but very delighted about the news. It’s about time. I watch way more than my share of crime shows. I have watched so much vintage Law & Order that I can pretty much tell when we are going to move from the Order to the Law and I can see a twist coming a mile away. When I see a new crime show being advertised on TV, I am pretty much always willing to give it a chance. I am held back from watching more crime-related shows because there are only 24 hours in day and I waste a lot of that time sleeping, working and interacting with the real world. For all the great and wonderful things that the shows do for me, I have a recurring gripe.

Every once in a while, on these shows, the investigators will have to solve a money-related issue and they’ll call in the forensic accountant. The guy, and it’s always a guy, who shows up always looks like he has not seen the light of day in years and appears to have forgotten how to interact with other human beings. His clothes and hair are out of style and the other investigators only put up with him because he talks, geekily, about where the money that they are trying to find went. The forensic accountant is that one guy on the show that no one wants to be. I mean, the coroners are more exciting than the forensic accountant and they deal with corpses!

But all of that is about to change. It is as though someone with access to a television network has been listening in on my conversations and hearing me yelling at the television. Tabeel shared with me that Shonda Rhimes is adding a new show to her resume, “The Catch”, and this show is a show about a forensic accountant. Not a show where a forensic accountant is released from the dungeon every once in a while, to look at numbers. The main character is a forensic accountant and the forensic accountant is a woman! Finally, someone found the right ear to whisper in – the stereotype is not reality. There is so much more to a forensic accountant than we have seen so far on television. At last, someone has decided to make a show about me!

I mean it totally has to be a show about me, right? A female, forensic accountant who is likely to be kick-ass and have many clever and insightful things to say. That’s totally how I roll. I look forward to this show, in between the dramatic twists and cliffhangers, highlighting some of the processes and nuances of what forensic accounting is about.It may begin a movement until finally Law & Order FAU (Forensic Accounting Unit) is launched. The forensic accountant is busting out of the basement and she’s taking no prisoners! Well, there probably be a lot of prisoners but you get what I’m saying. Look out for it, set your DVRs and dive into the world of the crime-fighting CPA!

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Watchoo Talkin’ ‘Bout

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Before I studied accounting, I went to college and got a degree in economics and mathematics. Armed with this degree in issues of money and numbers, I figured that accounting would be a relative walk in the park. I had learnt about debits and credits in economics, I had created intricate formulae in mathematics and I had tested theories on what had happened during the Salem witch trials in statistics, so I felt more than ready for accounting. Boy, was I wrong.
It had been a while since I had felt so overwhelmed. Nothing that I read made sense to me. When I asked my coworkers, who had been studying accounting for a while, they were confused. How could I not understand the accounting concepts. I was studying the most basic things – how could it not make sense. I spoke to my parents and warned them that I might not last in accounting. I prepared them for my failure. My mother, who had taken some coursework in accounting, stated that she had faith that I would work things out. It’s nice to have family who have faith in you, even when all around you look at you like you are the biggest dummy about. She encouraged me to look at some of the books that she had, “Maybe they will help.” I did and, fortunately for me, I found a book that explained accounting in a way that made it all clear to me. I almost couldn’t believe that it had been so difficult before. Now, I felt like I had a brain and it was more than luck that had gotten me through college the first time around.
As I have mentioned before, forensic accounting is a specialty practice of accounting where the work done is suitable for a court of law. The work done here is in anticipation of or as a result of litigation. Often a forensic CPA, usually Certified in Financial Forensics, will testify as a forensic expert before a judge and jury. Forensic CPAs are also often expected to present reports to their clients, to judges or to juries. Because most of the audiences that forensic accountants speak to are not financial experts in any way, it is imperative that they can communicate their work in a way that is understood by all the parties that they deal with. One of those parties could be you.
Many people that I talk to, who have accountants, have no idea exactly what their accountants do, or why. What they are is grateful that their taxes are filed on time and that they either had a small tax liability or a decent refund. This should never be your attitude with your forensic CPA and you should not give the time of day to a forensic accountant who does not explain everything to you. When it comes to forensic issues, you, as a client dealing either directly with a forensic CPA or through a lawyer, are the party to the potential litigation. Doesn’t it just make sense that you know exactly what is going on? Also, if they can’t explain things to you, how much faith could you have that they will be able to explain it to anyone else? My attitude is, if they are not doing a good job with me, and I’m the one hiring them, how can I expect them to do a good job anywhere else?
You should have a forensic accountant that you understand, are comfortable with and doesn’t treat you as though you are not smart enough to understand the complicated work that they do. Yes, the work they do can be very complex and involved but, part of being a good forensic accountant, is being able to take this complicated work and explain it in a way that can be understood by a jury of ones peers (generally a jury of people who did not major in accountancy). I often hear the phrase “explain it as though you are talking to a six year old”, but I would be happy if it was explained to me like someone was talking to an economics and mathematics major. Don’t let them make you feel dumb. Chances are, if they do, they may not be so clever themselves.

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