Minimizing Fraud Loss for a Community Bank
Our financial institution decided to hire a qualified forensic accountant to enhance our corporate governance program, and we are very happy that we did!
Foodman CPAs & Advisors were brought into the bank’s Board of Directors meeting to discuss financial crimes and how banks are utilized as a conduit for money laundering and sanctions violations. It was an eye-opening experience.
Evidence of misconduct could be buried in thousands of pages of documents, business records and complex business structures. Successfully uncovering transgressions depends on an understanding of the movement of monies and assets in the context of the related surrounding documents and business environment. In other words, one must “look beyond the numbers,” follow the money and put all relevant information into context.
Forensic accounting analysis provides context for supporting the existence of patterns of misbehavior. Foodman’s forensic accounting skill set and recommendations has assisted the bank in the detection and identification of red flags earlier in the corporate governance process. Our decision demonstrates that taking a proactive approach by bringing in a forensic accountant early instead of waiting for something to happen is a way to minimize fraud losses and protect the bank.
