Advanced Forensic Financial Analysis

Fraud examiners must hone their financial statement fraud detection methods to overtake the sophisticated crimes of corporate America.  

(This concludes an article that appeared in the September/October issue of The White Paper and is reprinted with permission from the June 2001 issue of National Association of Credit Management's Business Credit magazine.- ed.) 

Corporate fraudsters are committing more devious forms of financial statement fraud by concealing and suppressing the true worth of assets, liabilities, cash flows, sales and profitability. Fraud examiners must stay one step ahead.

Use analytical processes to detect the probability of bankruptcy or fraud:

The following reflects some detrimental conditions, which will assist you in determining deteriorating financial conditions and/or detecting financial fraud:

Bringing your level of analysis to a higher level of integrity will maximize your sales capabilities and minimize risk, which will ultimately influence profitability. Accomplishing that level of forensic financial analysis involves completion of the following steps:

Perform a horizontal and vertical trending analysis of the following statistics 

Complete a detailed comparative analysis