If you’re considering buying a company, fraud may be the last thing on your mind. Unfortunately, you can’t afford to ignore the possibility that your acquisition target is hiding something — possibly something that will have negative financial and legal implications after the deal is complete. To ensure the transaction is what it appears to
red flags Archives - Crawford Ellenbogen
Jul 6, 2023
Jun 20, 2023
Financial statement fraud: Don’t believe everything you read
- By Joan Ellenbogen
- Fraud
- 0 Comments
Financial statements are central to understanding any business. A public company’s balance sheet, income statement and cash flow statement enable investors, lenders, the media and other stakeholders to value the company, forecast short- and long-term performance, and determine potential credit risk, among other purposes. To ensure analysis of a company is accurate and insightful, financial
Mar 8, 2022
Your nonprofit’s board needs to know these financial warning signs
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
Is your board staring at financial red flags without knowing it? Although some warning signs — such as those experienced when the pandemic first hit — are obvious, others are easy to overlook. Here are several signs of trouble that board members need to be aware of and prepared to act on. Unexplained variances and
Jun 30, 2020
Is there a fraud perpetrator behind those behavioral issues?
- By Victor Dozzi
- Fraud
- 0 Comments
The most common behavioral red flag exhibited by occupational fraud perpetrators is living beyond their means. This may be tough to spot if you don’t work closely with a fraud suspect. But as the Association of Certified Fraud Examiners has found, more obvious non-fraud offenses may correlate with criminal actions. For example, many perpetrators had
Oct 2, 2019
The chances of an IRS audit are low, but business owners should be prepared
- By Ellenbogen
- Business, Taxes
- 0 Comments
As a business owner, are you worried about an IRS audit? The good news is that the odds against being audited are in your favor. The IRS audited 0.6% of individuals in fiscal year 2018. Businesses and high-income people are more likely to be audited, but audit rates are historically low. However, some tax return
Apr 18, 2019
Why executives pose the greatest occupational fraud risk
- By Ellenbogen
- Business, Fraud
- 0 Comments
Business owners and executives commit only 19% of all occupational fraud, but they cause a median loss of $850,000, vs. $100,000 for regular employees. So spotting red flags is critical. Crooked executives may be reluctant to cooperate with internal investigations, outside auditors and regulators, and may become agitated or annoyed when probed about financial discrepancies.