Tag Archives: Forensic CPA

Who Is The Accountant?

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I have been excited about watching “The Accountant” for over a year, when I first heard about this movie – a film about a forensic accountant! I lived in fear of the project being canceled by film bigwigs, who would decide that no one wanted to see a movie about an accountant. Accountants are almost never depicted, on screen, as anyone worth one’s time. You can’t love or hate them, they are too boring to think about. But here was a movie and the filmmaker was so confident about it that he called it “The Accountant.”  I would tell people how excited I was about the film and they would almost always express surprise that anyone would want to make a film about a CPA, let alone watch one. I don’t blame them because just about every time I have seen a CPA being portrayed on film or television, I don’t want to be him (and it is almost always a him). He is a guy with zero social skills that people put up with because he is some kind of numbers-whisperer; a guy who can find secrets in the numbers that the true heroes are too busy being interesting to find. So, on Sunday, I dragged my husband, who is a true saint, to the movie theaters to watch “The Accountant.”

From the previews, you will see that Ben Affleck, the Accountant, seriously lacks social skills and does not appear to have any friends. He is, as a forensic accountant, a super numbers-whisperer who gobbles up financial statements for breakfast, lunch and dinner.  However, he is also the hero and is an incredibly interesting guy who can do all the running, jumping and full mystery solving that heroes can! They also threw in the story of Crazy Eddie and his “Panama pump”. I may have been the only person in the movie theater who exclaimed in excitement when that came up, but the story of Crazy Eddie is one of many years of various fraud schemes, ranging from money laundering and tax evasion, to financial statement fraud.  I had a great time watching this movie and, I even forgave the woman who yelled out a spoiler reveal before it happened.

It seems that many had been convinced to try out a film about a forensic accountant. “The Accountant” won the box office this weekend, by a massive margin that you don’t have to be an accountant to understand. This gives me hope for the future of CPAs on the screen (big or small). I can see it now – characters who are at least as interesting as lawyers and doctors. We may even be portrayed as people who can tell funny jokes, who can be engaging and who can even have friends: I am excited about films that break long-standing stereotypes. Maybe I am getting ahead of myself, but I will say something that is a first, with respect to how I feel about a CPA of any kind on TV or on film. I watched this movie and I came out wanting to be a forensic accountant!

 

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How Are You Confirming Your “Facts”?

Journalist falling for teen claiming M in stock market profits is object lesson for auditors

Journalist falling for teen claiming $72M in stock market profits is object lesson for auditors.

Attestation Update just wrote about a recent hoax, where a teenager claimed to have made $72 million, trading on the stock market. This article got me thinking about a piece I wrote last year on professional skepticism and the importance of knowing who is confirming your information. The least reliable confirmation comes from the party making the claim, in this case, the alleged millionaire teenager. The journalist that he dealt with thought that the bank statement that the teenager showed her was a valid third party confirmation. This is a very easy assumption to make. It appears that the party is coming from a third party, so it is easy to see that as a third, independent, party confirmation. This, however is not the case. In order for a confirmation to be truly independent, the person making the claim cannot have any control over the confirmation process. As we have seen here and in the cases noted by James Ulvog, it is very easy for someone to hand you a fake document that looks very real. There are actually places that will create very realistic fakes for you, for a price, of course.

Ulvog also pointed out several red flags in the boy’s story. An auditor or forensic CPA, coming across these red flags, should seek to further investigate and seek independent confirmation of the claims. For example, there are age restrictions that make it illegal for minors to buy and sell securities. You should look at the piece at Attestation Update and see if you can determine why the items highlighted by Ulvog are red flags. This piece also underlines the importance of using diligent and qualified professionals. It also emphasizes how we, as professionals must consistently practice professional skepticism and be aware of what are truly third party confirmations and how important it is to make them.

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