FOCUS on self-study CPE


into an Excel spreadsheet for a relevant period of one year noting if any memo lines on checks referenced the credit card number associated with the payment and the signature authority on the check. I could have simply scheduled payments to the known credit card accounts for which Adam had saved statements; however, every time I had ever only processed select transactions instead of all the transactions listed on the statement to save time, I regretted it later and still ended up spending the time doing so. Tis case was no exception; digitizing all the bank statement transactions and subsequent analysis identified two additional credit cards belonging to Ivan. Tese additional credit cards were paid using the organization’s funds. To confirm that the credit card payments did not belong to the organization, a Dunn and Bradstreet report was obtained from a company specializing in background checks. Te report confirmed that the organization did not have any credit card debt in the organization’s name. Digitizing the bank statements also proved valuable because another area of loss to the organization was identified. Ivan had written multiple check payments for $1,000 each to himself in excess of his regular payroll. Tables listing the check payments to credit card companies and Ivan directly during the one-year period were prepared. I organized a binder for the hearing containing examples of the check payments made to credit card companies and Ivan’s credit card statements retained by Adam. Te records of cash donations were


compared to corresponding bank statement deposits that had been digitized





   


20 CPAFOCUS May/June 2022


to list cash and check totals. For the year under investigation, none of the cash donations had been deposited to the bank account. Tables were prepared summarizing the findings and were accompanied by examples of the paper donation records and carbon copy deposit slips. More nervous than ever, I testified to my assignment, my findings, and the evidence upon which I relied. During cross-examination, the opposing counsel questioned me on the validity of my procedures and evidence relied upon, but despite his efforts, the judge granted the temporary injunction. Relying on specific transactions from third-party source documents proved reliable and accomplished the goals of the case: it verified the legitimacy of the allegations and demonstrated to the court that Ivan’s assets should be frozen.


Te fundamental skills I had learned


were to process data and to identify patterns within the data. Tis approach worked by addressing the concerns of the clients and the goals of investigations using data-driven results.


Reprinted by permission of the publisher from Data Sleuth: Using Data in Forensic Accounting Engagements and Fraud Investigations, by Leah Wietholter.


Copyright © 2022 by John Wiley & Sons, Inc.


Self-Study CPE Details


Interest Area: Accounting Designed for: CPAs in Oklahoma.


Objective: Learn to perform embezzlement investigations from best evidence data.


Level: All Prerequisite: None


MUST BE COMPLETED AND SUBMITTED BY


APRIL 30, 2023 TO QUALIFY.


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