Author Archives: North American Forensic Accounting

Why You Shouldn’t Rely on Financial Statement Audits When You Need a Forensic Audit

Back in 1974, the English rock band Ace had its one and only hit, in which lead singer Paul Carrack demands to know, “How long has this been going on?” At North American Forensic Accounting, we could put that song on a continuous loop for our clients, after we inform them they have been losing money for years, if not decades, due to waste, fraud, and abuse. How could they not have known? Often, it comes down to relying on financial statement audits when what they really needed was a forensic audit.

By North American Forensic Accounting | Published April 1, 2025 | Posted in Forensic Accounting |

Internal Fraud and Theft Risk in the Cannabis Industry

Some of us can recall back in 2014, Colorado’s grand scheme to become the center of the legal, recreational marijuana industry, a virtual Napa Valley of Cannabis. Tax revenue from retail sales was going to solve every municipal problem for the town of 112,000. The streets would be paved with Gold, and the schools would be the finest in the land. Early returns were promising; The Wall Street Journal reported, “The day after legal recreational use arrived in Pueblo, Colorado, in 2014, fifty people were camped out in front of one of the first dispensaries, waiting for the doors to open.” The two shops licensed at the time “rang up a combined $1 million in sales the first month, sending $56,000 in taxes to the county.” Pueblo was on its way to becoming not just the national center of cannabis commerce but a tourist destination for connoisseurs of recreational marijuana.

By North American Forensic Accounting | Published March 1, 2025 | Posted in Cannabis Industry |

Calculating Economic Damages from a Cyber Event

Any time you hear the word “event,” you can be sure someone’s coming for your wallet. The word might appear on an invitation to the annual black tie for the Humane Society, in which case you’re probably happy to write a check. In the worst-case scenario, a business associate, vendor, supplier, or your own IT team might inform you of a “cyber event.” Then there’s no need to get the tuxedo pressed. There will be no cocktails, soft jazz, or chicken dinner. But the costs to your business might be so catastrophic that your team can’t even begin to quantify them. However, an accurate calculation is imperative, if your business is going to fully recover from cascading losses resulting from the “event.”

By North American Forensic Accounting | Published February 1, 2025 | Posted in Calculations |

How a Forensic Accountant Can Assist Your Independent Pharmacy

The corner drugstore is an American institution, offering personalized service, neighbor to neighbor, in communities across America. But, like Main Street itself, independently owned and operated pharmacies are struggling to survive in a business environment dominated by, and skewed towards, huge conglomerates. If you own and operate an independent pharmacy, you don’t need us to tell you about low reimbursement rates and narrow margins. You know that to survive, you must control expenses, eliminate waste and prevent unnecessary losses. In this article, we’ll outline the ways a retail pharmacy forensic accountant can provide valuable assistance to fortify your bottom line, so you can continue to serve your community.

By North American Forensic Accounting | Published January 1, 2025 | Posted in Retail Pharmacy |

Major Considerations for Conducting a Compliance Investigation

Conducting a compliance investigation can sometimes feel like you’re looking for a needle in a haystack. Frustrating, time-consuming, and seemingly impossible to resolve. The quick and easy solution, of course, is to burn the haystack and sift through the ashes. But, not when that haystack is your company. Bear in mind that the purpose of your investigation is to strengthen your organization, not torch it. Thus, there are parameters investigators must observe and lines they must not cross. Anyone conducting a compliance investigation must act in accordance with legal and ethical protocols, and proceed in a way that is minimally intrusive on the organization’s operations.

By North American Forensic Accounting | Published December 1, 2024 | Posted in Investigations |

Documenting Your Internal Investigation Delivers Immediate and Lasting Benefits

If you are conducting an internal investigation, success or failure hinges on results. So, you might believe you’ll be judged by your final product, not your process. Except that is not the case. In the old children’s game, the Paper Chase, a team of “hares” runs cross country, dropping shreds of paper to mark their trail. The team of “hounds” later pursues, spying the paper scraps and following the trail to catch the hares. No one bothers to pick up the paper. Today, however, we’re more concerned about litter than in the past. We’re also more concerned with processes.

By North American Forensic Accounting | Published November 1, 2024 | Posted in Internal Investigations |

Navigating Privacy Laws While Conducting Internal Investigations

Navigating Privacy Laws While Conducting Internal Investigations How management can shoot straight without shooting itself in the foot We’ve all seen movies or TV shows where the lead cop is hot on the trail of a dangerous suspect. The clock is ticking down to certain disasters—the execution of a hostage, the detonation of a dirty bomb, etc.—and our guy is the only officer on the right track. But! He’s about to lose his badge because his superiors don’t like his methods. He’s got to rein himself in before he gives the department a black eye. The audience knows that if our guy plays nice, terrible things might happen.

By North American Forensic Accounting | Published October 1, 2024 | Posted in Internal Investigations |

Navigating Legal Disputes with Expert Litigation Support Services

In the increasingly complex and litigious business environment, the role of expert litigation support services has never been more crucial. These services provide attorneys and legal teams with the financial acumen and forensic expertise necessary to effectively manage and resolve disputes. From uncovering fraud to assessing the value of businesses, to calculating economic damages, litigation support professionals play a vital role in the courtroom.

By North American Forensic Accounting | Published July 1, 2024 | Posted in Litigation Support |

Forensic Accounting Fact v. Fiction

Forensic accounting is a specialized area of accounting that involves investigating financial discrepancies, deviations, and fraud. It is somewhat of an art as well as a science that combines traditional accounting, auditing, and investigative skills to examine financial statements and transactions, ultimately, to find the truth behind the numbers.

By North American Forensic Accounting | Published June 1, 2024 | Posted in Forensic Accounting |

Final Investigative Process

The investigative approach can vary between professionals but in general refers to the systematic method or strategy used to gather information, evidence, and insights to uncover facts, solve problems, or make informed decisions. It includes a series of steps designed to methodically explore and analyze a situation or issue.

By North American Forensic Accounting | Published May 1, 2024 | Posted in Investigations |