Forensic Accounting

Fraud prevention remains one of the best investments a firm can make. Having responded to a myriad of allegations over our collective careers, CRA’s forensic accountants bring a methodical and well-informed approach to the design, communication, and implementation of an enhanced fraud and compliance framework. Any compliance program is susceptible to fraud or corruption risks, and therefore, properly timed and executed assessments can test the effectiveness of even the most well-intentioned programs. Whether performing risk assessments, evolving compliance systems, measuring progress, or simply educating the organization, CRA tailors compliance and fraud risk management procedures to align with the priorities of our clients.

When responding to allegations and regulatory inquiries, our clients seek a mix of the right experience, technical capabilities, and footprint. Our forensic accountants check each box and have worked side-by-side with attorneys, corporate officers, and government officials to execute investigations involving allegations of financial statement fraud, layered instances of asset misappropriation, and cleverly orchestrated corruption. We understand how to manage the complexity of structured and unstructured data sets to make sense of what took place, how it happened, how extensive is the issue, and how can we remediate it.

We help clients investigate and respond to allegations of accounting and financial reporting (GAAP) fraud, as well as underlying model errors, breaches of fiduciary obligations, money laundering, embezzlement, white-collar crimes, and other acts of misconduct or non-compliance that may give rise to financial statement misstatements and create financial reporting fraud risks.

CRA assists clients that are faced with potentially catastrophic government-imposed fines by independently assessing and credibly communicating our opinions as to their ability or inability to pay. We leverage our deep accounting, finance, and economic skills to analyze and quantify the impact that a fine will have on the organization; on the marketplace, workforce, and other stakeholders; and on the organization’s ability to subsequently comply with other laws and regulations. We consider guidance, where appropriate, from the government agencies themselves, and from our sources such as the FASB, PCAOB, AICPA, IRS, Bankruptcy Code, and case law.

Businesses frequently rely upon models to support investment decisions, ensure accurate financial reporting, perform customer transaction monitoring, engage in capital stress testing, and more. Numerous regulators in the US and UK have engaged in enforcement actions against companies who have used and relied upon models, but which were later discovered to have had errors, inadequate controls, poor governance, and/or been used in ways other than intended. Model errors often lead to fines, monitors, litigation, and other sanctions. Our team helps clients investigate allegations of model errors, enhance model governance, and defend against litigation and regulatory scrutiny.

Whether before or after a proposed acquisition, merger or investment, CRA understand that these transactions pose a spectrum of time-sensitive challenges for our clients. Our team is well-versed in identifying and contextualizing potential fraud or corruption risks as well as providing insight into financial risks and potential regulatory scrutiny if issues should arise further down the line.