Forensic Accountants Paul Bustos, CFE, CRMA Manager, Forensic

Forensic Accountants Paul Bustos, CFE, CRMA Manager, Forensic & Litigation Services Tele: 972-448-9251 E-mail: [email protected]

About Weaver Largest independent firm in the Southwest with seven offices across all major Texas markets Nationally ranked as a top 100 firm – No. 41 by Accounting Today and No. 38 DFW Houston Austin San Antonio Midland / Odessa by INSIDE Public Accounting FY 2013 revenues of approximately 83.4 million More than 60 years of experience Approximately 450 employees, including 61 partners Global reach through the Baker Tilly International network

Outline Fraud Forensic Accounting Local Cases in the News

Fraud

Fraud Definition A generic term, embracing all multifarious means which human ingenuity can devise and which are resorted to by individual(s) to get advantage over another by false suggestions or suppression of truth, and includes surprise, trick, cunning, and any unfair way by which another is cheated

Elements of Fraud Misrepresentation Intent to mislead Reliance Detriment

Primary Categories of Fraud Asset Misappropriation Corruption Financial Statement Fraud Theft or misuse of tangible and intangible assets Utilizing influence in business transactions to obtain a personal benefit Misstatement or omission of material information in financial statements Most Common Less Frequent Most Rare

The Fraud Triangle Rationalization OP PO RT UN N IO AT T LIZ EN N A LM TIO EA RA ONC C The only factor completely controlled/prevented by an organization Must gain access to assets/records TY Opportunity Ability to follow through and commit the fraud Perpetrator has to make it “okay” internally to perform the fraudulent act INCENTIVE/PRESSURE INTENT/MOTIVE Incentive/Pressure The more incentive, the easier it is to justify Financial or personal problems, financial pressure, mental instability

Forensic Accounting

Forensic Accountant

Accountancy Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. Elliot, Barry & Elliot, Jamie: Financial accounting and reporting, Prentice Hall, London 2004, ISBN 0-273-70364-1, p. 3,

Forensics Origin: 1650–60; Latin forēns ( is ) of, belonging to the forum, public (see forum, -ensis) IC

Types of Services Litigation and dispute support services: Helping counsel evaluate financial claims or defenses Providing clear and concise testimony and evidentiary presentations Preparing comprehensive damage calculations for breach of contract or other cases Performing complex tracings in civil matters

Types of Services Our investigations services include: Investigating allegations of fraud, misconduct or noncompliance Analyzing complex financial transactions and relationships Conducting computer-assisted analysis of voluminous data Independent response to whistleblower allegations Board and audit committee concerns

Investigatory Process Investigator is trying to find proof that allegation did occur or proof that it did not occur.

FBI Forensic Accountant Desired Education: Bachelor’s degree in accounting or degree with 24 semester hours in accounting (six out of 24 hours can be in business law) Applicable Certifications: Certified Public Accountant (CPA) Certified Financial Forensics (CFF-AICPA) Certified Fraud Examiner (CFE) Certified Internal Auditor (CIA) Relevant Work Experience: Forensic accounting Public accounting-audit Government accounting http://www.fbi.gov/news/stories/2012/march/forensic-accountants 030912/forensic-accountants 030912

TX State Auditor’s Office Special Investigations Unit (SIU) consists of experienced professional investigators including: Certified Public Accountants Certified Fraud Examiners Certified Fraud Specialists Certified Government Auditing Professionals Certified Internal Auditors Certified Forensic Computer Examiners Certified Forensic Interviewers Texas Commission on Law Enforcement Master Peace Officers Investigative researchers Paralegals http://sao.fraud.state.tx.us/AboutUs.aspx

Local Cases in the News

Plano ISD 19

Plano ISD 20

Plano ISD 21

Plano ISD 22

John Howard

John Howard

John Howard

Dallas Chapter-ACFE Student Associate Member Annual dues for student membership are 10, and do not include ACFE dues. Student Scholarship Opportunities The ACFE Dallas Chapter is offering four separate 1,000 scholarships. http://www.dallasacfe.org/Student Center/

Dallas Chapter-ACFE Student Contact : Mike Rogers, Director Email: [email protected] http://www.dallasacfe.org/Student Center/

Forensic Accountants Paul Bustos, CFE, CRMA Manager, Forensic & Litigation Services Tele: 972-448-9251 E-mail: [email protected]