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Accounting shenanigans seem to unfold in detail and appear to have become the main scandal in U.S. corporations in recent years. Unfortunately the number of fraud cases jumped 41 percent in the last three years, costing firms tens of millions of dollars in fines and charges settlements.
For questions regarding securities law or for legal inquiries concerning accounting scams, contact one of our accounting fraud attorneys near you.
Reasons for accounting fraud
Investigators of accounting scams clearly agree that today’s cutthroat atmosphere in business leads to clients pressuring their accountants to ensure that the numbers add up. Accountants are not as sensitive anymore and would rather betray the client, overlook flaws in numbers and hope they don’t get caught. At the same time, the relationship between the clients and their accountants is too “friendly.” Many corporations have had the same accountant doing all the work, with no room for sporadic check-ups.
Signs of accounting fraud
While many business owners are under the impression that their company won’t become subject to accounting scams, there are bitter surprises. In order to avoid accounting theft and in order to prevent financial ruin, there are a few signs to consider that might point to internal accounting fraud.
- An in-house accountant works without direct supervision and is responsible for all financial operations of the company.
- Deposits seem too small on a frequent basis and there is no direct monitoring of income and deposits and receipt.
- An accountant frequently works after hours and falls into the habit of bringing work home.
- The accountant is resistant to accepting recently established accounting guidelines.
Of course these are only signs that create favorable situations where accounting scam could occur. While none of the above are real reasons to fire the current accountant, business owners should develop a sensitivity towards suspicious behaviors and ask for the reasons of certain routines that develop in a corporation.
Hot Topics
- Stock fraud
- Churning
- Investment fraud
- Internet fraud
- Insider trading
If you have reason to believe that your company has become a victim of accounting fraud, it is best to consult an accounting fraud attorney. Proving accounting scams can develop into a complex process in which certain aspects need to be carefully examined and then presented.
For any questions regarding accounting fraud or for legal inquiries,contact one of our accounting fraud attorneys.
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Facts About Accountant
