Category Archives: Forensic Accounting

Think Cryptocurrency is safe? Think again.

“In 2019 alone, an estimated $4.26 billion in cryptocurrencies was lost due to hacks, cybertheft, scams, misappropriation or insider fraud, up about 250% from 2018.” Fraudsters have upped efforts to attack cryptocurrencies in recent years.

Fraudsters are using schemes such as: embezzlement, Ponzi schemes, phishing and ransomware.

Currency Exchange Rates

Unlike other frauds, if a person loses cryptocurrency, there is no recourse or way to recover it.

For how forensic accountants can help, go to: https://blog.aicpa.org/2020/05/cyber-criminals-are-finding-ways-to-steal-your-digital-dollars.html#sthash.Sv5ebunY.dpbs

Forensic Auditing with Excel

The role of a forensic auditor may be to identify suspicious transactions which may be fraudulent. Excel can be a useful tool to review a smaller dataset.

This Excel Zoom article shows users how to perform 5 simple forensic tests, including:

  • Identify Duplicate Transactions
  • Identify Rounded Transactions
  • Find above average payments
  • Identify a gap in transactions
  • Compare highest to 2nd highest transaction

To see the article, go to: https://excelzoom.com/five-ways-performing-forensic-audit-using-ms-excel/

New Forensic Accounting Standards

The AICPA issued new standards for those that perform forensic accounting services engagements.

The standard defines forensic services as those “provided for investigation or litigation”.

To read more about the release of standards, go to: https://www.journalofaccountancy.com/news/2019/jul/forensic-accounting-aicpa-standards-201921580.html

To review the Statement on Standards for Forensic Services No. 1, go to: https://www.aicpa.org/content/dam/aicpa/interestareas/forensicandvaluation/resources/standards/downloadabledocuments/ssfs-no-1.pdf