Accounting Firm Offers Forensics and Fraud Protection

Just One More Way Abeles and Hoffman, P.C. Look Out for their Clients 

The last several years have shown a dramatic increase in the number of cases of fraud or "white-collar" crimes affecting business entrepreneurs not only across the country but right here in St. Louis, Missouri.  High profile companies such as Enron or Tyco easily come to mind but these offenses can happen to any size company just the same since employees only need motive, opportunity, and the ability to rationalize fraudulent activities, behavior not often monitored.  Smaller to mid-size companies frequently have fewer internal controls set up to track or detect fraud.  The resulting effect which may not be great in number can be particularly damaging to a smaller sized business.

Fraud can show its face in many ways such as billing and payroll schemes, fraudulent disbursements, check tampering, skimming merchandise or profits, expense reimbursement plots, and embezzlement.  However defined, the end result is the same: businesses suffer a loss because an employee unlawfully takes something from an employer.  The nature of most businesses requires owners to entrust financial transactions that keep the business running over to someone else.  Without proper inspections the average it takes for an employer to catch an employee who is stealing is 18 months.  Internal audits and external audits are highly recommended but combined still catch less than half of fraud cases.  The majority are discovered as a result of anonymous tips.  Studies show that the more employees believe they will be caught, the less likely they are to steal.   

In response to these rising statistics, Abeles and Hoffman, P.C. an Olivette-based Accounting Firm has developed and Anonymous Fraud Hotline for their clients.  The hotline number can be used by all employees and management staff and is encouraged to be utilized if there is suspicion or direct knowledge of fraud.  The Association of Certified Fraud Examiners' 2006 Report to the Nation found that companies with fraud hotlines cut their losses by about 50% per scheme, because activity was detected earlier through tips. The Forensic Service division at Abeles and Hoffman helps clients and their legal counsel reconstruct accounting records and provide the essential detailed analysis to uncover essential facts and insights affecting clients.  Abeles and Hoffman's goal is to help their clients get the most out of their business by showing them how to protect it. When the damage has already been done, they can help determine the amount of loss and recommend the controls needed to prevent it from happening again.  With a cost of $195 a year, plus $25 for each called report, prevention is definitely cheaper than the cure considering the fact that the average median loss from a small business employee theft is $100,000.

For more information contact:  Abeles & Hoffman, P.C.  9666 Olive Blvd.  Suite 625 St. Louis MO  63133

314-991-4470   www.ahcpa.com