Hotel Theft

During COVID-19, the hospitality industry took a significant hit. Many restaurants and hotels closed temporarily or shut down permanently. Now, as the market revives, employers again need to be vigilant. Fraud is ever-present and fraudsters are always on the lookout for opportunities. Employee theft is a major problem in many industries, and the hotel industry is no exception.

According to the Report to the Nations on Occupational Fraud and Abuse, a 2020 global study performed by the Association of Certified Fraud Examiners, the typical organization in the hospitality industry loses 5% to 6% of annual revenue from fraud perpetrated by employees and guests. For example, a hotel operator earning annual room revenue of approximately $10 million may experience losses ranging between $500,000 and $600,000. Losses from fraud would be amplified for organizations owning a chain of hotels.

How Accounting Firms Can Give Back to Their Communities

Accounting firms understand the importance of maintaining strong relationships with their communities to build a reputable profile. Establishing meaningful connections with the community requires dedication and effort from both the firm and its members. In this article, we will explore effective community service ideas that accounting firms can utilize to serve and enrich their communities while enhancing their own reputation. One such accounting firm that embodies this commitment is Studler Doyle.

 

Fraud Examination: A Comprehensive Guide by Studler Doyle

Fraud is a serious crime that can have severe consequences for individuals and organizations. It is the intentional deception or misrepresentation that an individual or an organization makes, with the aim of obtaining something of value or causing damage to another individual or organization. Fraud can be committed in various forms, such as financial fraud, insurance fraud, healthcare fraud, identity theft, and more.

Fraud examination is a critical process that helps detect, prevent, and deter fraud. It is an investigation into fraudulent activities, with the aim of gathering evidence that can be used to prove or disprove the allegations of fraud. 

In this article, we will delve deeper into fraud examination, as explained by the experts at Studler Doyle.

 

How to Manage the Risk of Corporate Fraud during a Pandemic

 

The risk of fraud is present in all organizations, to a greater or lesser degree, depending on various internal factors such as organizational culture, level of maturity in corporate governance, management of risks, internal control, type and size of business and others, and external factors including industry: national / regional context, market in which it operates and others.

Fraud, unfortunately, is a risk that can affect any organization at any time, in normal times or even in times of crisis. Furthermore, in times of crisis, the risk of fraud may increase, as some people may find in the crisis a motive (pressure / incentive), an opportunity, or a justification (rationalization) to commit irregularities.

Types of Forensic Audit

Forensic Auditing is a technique that aims to participate in fraud investigation. It is developed through criminal investigation techniques, integrated with accounting and legal - procedural knowledge, and skills in financial areas. Forensic auditing has the aim to provide information and evidences at a court.

We went to Studler Doyle, a global investigation and forensic accounting firm in order to find out how forensic audit works. Here, we share the information we have obtained about what is forensic audit and what are its types.

It should be noted that Forensic Auditing is a highly useful and collaborative technique that allows to the investigation of law enforcement bodies, police, prosecutorial and judicial investigation departments, to clarify possible illicit acts or crimes.

Background of Forensic Accounting

The term forensic is initially associated with legal medicine and with those who practice it, as most people identify this word with autopsy and pathology. Forensic Accounting has existed for a long time, and today its protagonism is undoubted as the entire community recognizes the importance of the role it plays in society and the long road that still has to go.

Ever since its founding in 2001, by Dee Studler and Krista Doyle, Studler Doyle has been regarded as a one of the top forensic accounting companies that provides a complete range of forensic accounting solutions. Studler Doyle offers the services of highly-experienced investigating and forensic accounting experts who have a sharp eye for detail when it comes to investigating and analyzing specific accounting situations.

What is forensic audit?

The worldwide scourge of fraud, day by day is becoming a phenomenon of multiple changes and permanent mutation, optimizing its ability to adapt to all kinds of control systems that stand in its way. One of the peculiarities that it possesses is its link and progress associated with the devastating advance in computing and technology of the 21st century.

Consequently, fraud becomes versatile, prevailing in any nation or continent, regardless of language, race, culture or religion, that is, without any kind of impediments that violate its existence or impede its devastating advance.

Job functions and work environment of forensic accountants

When you hear the word "accountant," do you immediately imagine a middle-aged gentleman wearing round glasses and a green eye glow? Maybe your thoughts are focused on finance, taxes and math. In some circles, accounting has long been perceived as a safe, gentle, stable and respectable career choice, if not the most linguistic or exciting of the professions. However, that perception is changing as accountants become criminals and more and more individuals are increasingly interested in careers in forensic accounting.

The concept of forensic accounting has a relatively short but easy history, and it may start with the man who destroyed one of the biggest fish of them all, Al Capone. Agent J. J Wilson, a U.S. Treasury special intelligence unit agent, who was tasked with going after the notorious gangster for tax evasion, which resulted in his conviction and imprisonment.

The Task of Forensic Accountants

Accounting documents and financial statements are the main testimonials of the assets and financial position, as well as the economic and financial performance of the business entity. Manipulating accounting records entails fictitious and incorrect processing of data, with the intention of concealing the true picture of the condition of assets, sources of funds or business results. When abusing legislation, it creates a picture of their compliance, grazing within the regulations looking for ways to achieve the desired business goals. The goal is achieved through numerous manipulations that create different values ​​of assets, costs and outflows.

Headquartered in Aurora, Illinois, Studler Doyle is a forensic accounting company with an extensive background & experience of crime investigation, fidelity investigation, and accounting education to its clients. The company was founded in 2001 by two promising Certified Public Accountants, Dee Studler and Krista Doyle.

Fraud Examination

Fraud

Fraud is an intentional act that causes the victim to suffer an economic loss and/or the perpetrator to realize a gain. From the global investigation and forensic accounting firm, Studler Doyle, we learned that the simple working definition of the term ‘fraud’ is “theft by deception”.

The legal definition is the same in both, criminal or civil offense. The difference however is that criminal cases must meet a higher burden of proof.