Our clients recognize Sanli Pastore & Hill as an undisputed expert in providing the forensic accounting, finance, and economic research, analysis, expert testimony, and litigation support that defines and clarifies financial and economic damage issues. With extensive experience and expertise in unveiling potential fraud or financial wrongdoing that can withstand intense third-party scrutiny, SP&H provides the highest quality independent forensic analysis services. We are regularly retained by attorneys, advisors, and business owners to perform forensic analyses to prevent and detect financial maleficence and quantify any financial damages. We dig and are therefore able provide unimpeachable results.
More specifically, we thoroughly review and analyze every aspect of a company’s financial statements, tax returns, general ledgers, budgets and forecasts; analysis of source documents used to create financial statements, including bank statements, internal accounting and bookkeeping records; financial ratio analysis; development and analysis of financial and performance metrics; and development of appropriate financial statement adjustments and/or the complete reconstruction of financial statements.
When is Forensic Analysis Used?
Shareholder Disputes & Marital Dissolutions
Numerous circumstances can create the need for shareholders to determine the value of their privately held company. Common reasons include retirement, execution of a buy-sell agreement, or divorce. Regardless of the cause, the situation typically bears some level of dissension and can ultimately lead to litigation. For shareholders of privately held companies, dissolving their marriages is complicated and multi-fold, forensic analysis can determine if a buyout of one spouse or partner is economically feasible.
Theft & Fraud – including, but not limited to, price fixing, market manipulation, and breach of contract
Highlights of Sanli Pastore & Hill’s Forensic Accounting for Fraud Detection
- A gym chain of fitness studios was concerned about internal fraud. SP&H was engaged to perform forensic accounting analyses for the business to determine the existence of fraud and the related economic damages suffered by the business. By interviewing key employees, reviewing internal accounting records and supporting documents, and examining the accounting practices and procedures, we evaluated the business’ internal controls. We also reviewed external documents prepared by third parties, such as bank statements, bills/invoices, purchase/sell orders, and shipping records. Completeness, accuracy, and classification tests were conducted based on internal and external information sources. Our analyses uncovered numerous discrepancies and irregularities spanning several years, resulting in the affirmation of fraud and significant economic losses.
- Over the course of several years, a “passive” business owner saw a gradual decline in his company’s profits. The owner was concerned that a key employee was engaged in fraud, causing profits to disappear. This key employee was fired, and SP&H was engaged to determine whether the changes in the business’ performance were the result of fraud or outside factors, such as the economy or industry and market changes. SP&H analysed the business’ financial trends, operating metrics, and financial ratios before, during and after the key person was running the business. Considering internal accounting and operations procedures and comparing the performance to independent industry and market data enabled SP&H to quantify damages resulting from fraudulent actions.
Business Valuation – alleged diminution of value and lost profits calculations
In times like these, nothing is more important than knowing the real value of your business and specifically how recent economy shifts and trends have affected the value.
Compliance with Tax Code
Financial opinions are used for tax reporting purposes, audits, and litigation. We provide comprehensive opinions that meet the regulatory requirements promulgated by the Financial Accounting Standards Board, Securities and Exchange Commission, and the Internal Revenue Service.
Expert Witness & Litigation Support
We provide our clients with litigation support that helps eliminate unfounded damage claims, present fact-based opinions that rely on authoritative theoretical foundations, and provide expert testimony that withstands third-party scrutiny and cross-examination as well as prepare cross-examination questions for other experts.
If you require any assistance and need forensic accounting services or want to learn more about the services Sanli Pastore & Hill provides, visit our website at sphvalue.com.