Forensic Accountants Assist with Quantifying Economic Damages and Investigating Fraud in the Transportation and Warehousing Industry

Expert assistance for assessing losses through litigation and insurance claims

Increased consumer activity causes manufacturers, wholesalers, retailers, and distributors to rely more on both the transportation and warehousing industries. Naturally this increases the risk of economic loss due to damage, liability disputes, and fraud. At North American Forensic Accounting, we draw on decades of leadership in forensic accounting to help companies in these vital industries minimize their losses and enhance their controls over the assets in their care. NAFA helps you make good on your promises, so your business can prosper and thrive in the evolving business landscape.

Recovering business interruption damages in the warehouse industry

The COVID-19 pandemic and subsequent supply chain disruptions inflicted true hardship on the warehousing industry. Depending on the circumstances, your business interruption insurance may compensate you for these losses, as well as other losses incurred due to natural disasters, fire, work stoppages, and other disruptive events. Moreover, you do not have to claim that your entire business was completely interrupted. If you lost the use of key equipment, such as a tractor-trailer, and that loss cut into your business, you can file a downtime claim for the period that equipment was inoperable.

Our knowledgeable analysts can ascertain an appropriate figure for your losses to support your insurance claim. We can also appear as expert witnesses to provide cogent and confident testimony on our findings.

Thorough calculations of damages in liability claims

Storage facilities and carriers can easily find themselves defending against negligence claims. Common liability lawsuits include personal injury/property damage from traffic accidents, as well as economic losses from alleged mishandling of warehoused or transported items. In these types of cases, NAFA reviews all pertinent records to calculate potential damages. We have extensive experience providing litigation support that includes expert witness testimony on the financial aspects of the case.

Business valuations and quality of earnings reports

How much is your business worth? There are many key factors that go into determining the value of a warehousing and transportation company, including the size and location of facilities, the age and condition of equipment, and the amount of debt the company is carrying. But there are intangibles that also have a great impact on worth, such as how well you run the business, how well you keep business records, and how loyal your customers are. At NAFA, our forensic experts are as adept at calculating those human elements as we are at counting the nuts and bolts. Our business valuations account for every pertinent aspect of the company.

If you are concerned whether current revenue is reliable, we can examine business records to produce an insightful quality of earnings report. We look at client contracts in light of numerous factors tied to the economy at large to determine what future trends might look like. For example, businesses that service a variety of customers are generally better able to weather downturns than those who rely too heavily on a few large clients in the same business sector. Who your clients are also matter since stable companies are more likely to keep sending business your way. Because of the wealth of insights we include, our quality of earnings reports can reliably guide buyers and sellers in their transaction strategies.

How logistics company leaders can identify fraud

If you’re in the business of getting people or freight from Point A to Point B, you must be familiar with the warning signs of fraud in your industry. Signs of fraud from within include:

  • Limited controls over vendor selection — If one person is making decisions, and competitive bidding doesn’t exist, there’s ample opportunity for kickbacks, nepotism, and other conflicts of interest.
  • Paying rates above fair market value — The extra funds can be diverted to an inside party to make the arrangement beneficial for both parties.
  • Payments lacking key documentation — Each transaction should have several items of documentation which need to be aligned. When controls over these processes are lax, you risk making inflated payments, duplicative payments, or ghost payments.
  • Employees who seem to be living above their means —You know what your workers earn. If they suddenly begin to acquire items that don’t line up with their pay, there could be foul play.

If you think you’ve been the victim of fraud, the forensic experts at NAFA can help gather the proof to make your case. We can pinpoint the origin of your losses and provide the evidence necessary for you to pursue a legal remedy. If civil or criminal litigation is necessary, we provide the expert witness services you need to bolster your case.

Contact North American Forensic Accounting to assess a claim or investigate fraud in transportation and warehousing

North American Forensic Accounting helps companies engaged in transportation and warehousing to detect fraud and recover insurable losses. NAFA serves clients from offices throughout the United States, including in Philadelphia, Pittsburgh, New York City, Atlanta, Charlotte, Miami, and the Tampa Bay Area. Call us at 347-286-4860 or contact one of our offices online to schedule an appointment.