Financial Forensics Body of Knowledge, + Website

DARRELL D. DORRELL, CPA, ABV, MBA, ASA, CVA, DABFA, CMA, is a principal and founding partner of financialforensics (R). He is a nationally recognized expert witness, speaker, and author and has trained many organizations in twenty-four U.S. states, Canada, and Puerto Rico, including the FBI, U.S. Department of Justice, SEC, Bankruptcy Bar Association, AICPA, NACVA, IMA, PricewaterhouseCoopers, and thirteen state CPA societies. He authored nearly seventy technical articles in nearly two dozen professional journals and coauthored "Counterterrorism: Conventional Tools for Unconventional Warfare" and "Forensic Accounting: Counterterrorism Weaponry" for the U.S. Department of Justice. GREGORY A. GADAWSKI, CPA/ABV, CFE, CIRA, CVA, is a principal and founding partner of financialforensics (R), with over fifteen years of professional experience. He is a recognized expert witness in state and federal courts in both civil and criminal matters. He has contributed to several professional journals and coauthored "Counterterrorism: Conventional Tools for Unconventional Warfare" and "Forensic Accounting: Counterterrorism Weaponry" for the U.S. Department of Justice.

Preface xi Acknowledgments xv Introduction 1 What Is a Methodology? 1 Why Was This Book Written? 4 How to Use This Book 10 About the Book's Website 10 How This Book Is Organized 11 PART ONE Financial Forensics Tools, Techniques, Methods, and Methodologies CHAPTER 1 Foundational Phase 21 Assignment Development Stage 21 Scoping Stage 36 Conclusion 54 CHAPTER 2 Interpersonal Phase 55 Interviews and Interrogation Stage 56 Behavior Detection 62 Background Research Stage 73 Conclusion 77 CHAPTER 3 Data Collection and Analysis Phase: Part I 79 Data Collection Stage 79 Surveillance Stage 111 Confidential Informants Stage 114 Undercover Stage 117 Laboratory Analysis Stage 119 Confirmation Bias: Clinical Thinking 122 Aberrant Pattern Detection: What's the Difference? 131 Forensic Lexicology: How to Analyze Words Like Numbers 150 Conclusion 172 CHAPTER 4 Data Collection and Analysis Phase: Part II 173 Analysis of Transactions Stage 173 The Myth of Internal Control 175 Financial Statements-Written Confessions 181 60-Second Method 185 Forensic Indices 204 Forensic Financial Analysis 212 Conclusion 252 CHAPTER 5 Data Collection and Analysis Phase: Part III 255 FSAT-Financial Status Audit Techniques 255 Applying Digital Analysis Techniques in Financial Forensics Investigations 270 Valuation & Forensics-Why & How 287 Valuation's Orphan 294 Conclusion 314 CHAPTER 6 Trial and Reports Phase 315 Trial Preparation Stage 315 Testimony and Exhibits 318 Weapon (WPN) 320 Reports and Exhibits: Tips and Techniques 325 Post-Assignment 333 Conclusion 334 PART TWO Financial Forensics Special Topics CHAPTER 7 Counterterrorism: Conventional Tools for Unconventional Warfare 337 Stop the Money-Stop the Terrorists 337 Civil Tools Used by Federal Law Enforcement 338 The Civil Statutes as Counterterrorism Weapons 339 Why Use Civil Laws in Addition to Criminal Laws? 341 Discussion of Alter Ego 343 Alter Ego Literature 348 Alter Ego Jurisdictional Examples 358 The Challenges of Alter Ego Investigation 361 Fraudulent Transfer 372 Solvency 374 Forensic Accounting Techniques 378 Alter Ego, Fraudulent Conveyance, and Solvency Matters in Action 384 What Target-Rich Scenarios Can Be Exploited? 386 Forensic Accounting: Counterterrorism Weaponry 391 Financial Statements-The Sources of Data 395 When Financial Statements Contain Laundered Money 403 When No Records Have Been Prepared by the Terrorist 408 Summary of Forensic Accounting Observations 413 A Forensic Accounting Methodology to Support Counterterrorism 415 Summary 421 Conclusion 423 CHAPTER 8 Civil versus Criminal Law Comparison 445 Comparison 457 What If You Suspect Embezzlement?-The Three Big Don'ts and Several Do's 457 Conclusion 469 Appendix Forensic Inventory: Forensic Tools, Techniques, Methods, and Methodologies 471 Bibliography 517 About the Authors and Contributors 521 Index 529