Fraud Examination & Audit
Fraud Examination is a core service line. Fraud Audit is a sub-service
within this line.
A fraud audit is a methodical inspection of business records designed
to identify the existence of fraudulent activity. It employs methods of
data collection and analysis comparable to traditional financial audit,
and is triggered by a control mechanism or an observation of unusual
Such audits typically are administrated by an audit committee or
internal audit department. Often organizations look outside their firm
for expertise in the fraud area. Our specialized staff can provide
additional assurance and advanced expertise, since we have special
training and experience in fraud detection and investigation.
The objective of a fraud audit is to provide substantive information to
stakeholders, in the form of a narrative report and supporting exhibits.
Although a fraud audit may identify the existence of fraudulent activity,
audit procedures alone are often insufficient to identify the responsible
parties or the specific details of their misdeeds.
Fraud audit generally is distinguished from fraud examination by the
level of predication and the scope of inquiry.
Fraud examination is much broader in scope, and generally involves
all actions reasonably necessary to resolve an allegation of fraud, from
inception to disposition. This comprehensive process draws on the
disciplines of audit, investigation, law, and criminology. The art of fraud
examination relies heavily on the interview process. Effectively
indoctrinated in the psychology of fraud, our examiners possess the
finely polished interpersonal skills required to detect inconsistent
responses and elicit demonstrative testimony.
The objective of a fraud examination is to achieve an overall resolution
of the situation. This involves the accumulation of reliable, admissible
evidence. The findings of a fraud examination are often used as a
basis for a personnel action by management or a referral for criminal
prosecution. Additionally these results may be used to revise existing
control procedures, to establish a claim against a fidelity bond or
insurance policy, or to assert a claim for civil damages.
End the uncertainty.
Before it's too late.
The Association of Certified Fraud
Examiners reports that frauds at private
companies caused losses of $278,000 per
event, on average. Can you afford to
become a victim?
If things don't add up, there's always a
reason. As a business manager, you
probably already have an indication that
things aren't as they seem. But how to
proceed? We have two solutions to help
you resolve the problem: Fraud Audit &
A fraud audit is initiated as part of a
randomized control procedure or
in response to unusual data or behavior. A
fraud examination, on the other hand, is
initiated only upon a "predication of
fraud." Predication is more than mere
suspicion. It requires particularized,
depictive facts that would lead a prudent
business person to conclude that fraud is
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EP Forensic & Valuation Services is a full-service certified public accounting partnership with offices in Los Angeles,
Ontario, and Redlands, California. Our areas of special expertise include forensic accounting, fraud audit, fraud
examination, financial investigation, valuation services, and expert witness services. We serve all of Southern
California from headquarters in the Inland Empire, with specialized knowledge and expertise in the counties of Los
Angeles, Orange, San Bernardino, and Riverside.