Truth Behind Numbers

How To Tell If A Forensic Audit For A Business Is Needed

How To Tell If A Forensic Audit For A Business Is Needed

As a business owner, you may be dedicated to providing a great product and the best customer service possible. But even if you’re satisfied with your company remaining competitive and turning profits, you may still have a need for a forensic audit for a business. The process involves using accounting methodology to track assets and transactions – usually for investigation purposes. A forensic audit may be used to discover such misconduct as embezzlement or fraud.

You Have Concerns About Insider or Employee Fraud

Even when you think you can trust all of your employees, there are some that may take advantage of their employment situation to gain financial benefits. Embezzlement, fraud and other misconduct can cost you thousands. You can hire a professional to conduct a business forensic audit to make sure your company isn’t victimized.

Divorce Proceedings Require a Business Valuation

In a divorce, you may have to report on all assets and income so that a court can determine a financial arrangement for both spouses. When you own a business, it can be difficult to value such intangible “assets” as your company goodwill and reputation, and your non-financial contribution in a leadership role. A business valuation conducted by a forensic auditing firm can value your interest in a business for purposes of divorce proceedings.

You’re Selling Your Business

You can be in a similar position when selling your business as you are in a divorce proceeding: You may need an assessment of your company’s value. You may hire a professional to conduct a forensic audit for a business if you don’t have the background or skills in accounting.

A Business Valuation is Needed to Resolve a Shareholder Dispute

Disputes over the value of their shares may lead some investors in your business to pressure you for a forensic audit. For example, shareholders may contest the dividends they’re receiving when they see the financial records of the company. A forensic audit can be useful in resolving these disputes.

Your Business is Being Audited By the Government

Companies that engage in certain activities or operate in some industries may be subject to routine or random audits by government agencies. If you receive notice that your company is being audited, you could conduct your own business forensic audit for comparison purposes.

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Call Veriti Consulting now to speak with a professional and trusted forensic accounting firm. Reach out and contact us today at (855) 232-4410.

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