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.

 

Making Sense of Cryptocurrency

Warnings about cryptocurrency scams are all over the news. But just what is cryptocurrency? October is National Cryptocurrency Month and a good time to learn more about digital currencies.

Kaspersky, an internet security company, defines cryptocurrency as “any form of currency that exists digitally or virtually and uses cryptography to secure transactions.” The word “crypto” means concealed or secret. “Cryptography” is secret writing. Cryptocurrencies rely on cryptographic methods to code and decode data. This cryptographic technology is used to secure transactions, to control the generation of new currency units, and to verify the transfer of digital assets and tokens.

 
The concept of cryptocurrency has been around since 1982 when David Chaum presented a dissertation that proposed the technical roots of cryptocurrency. Chaum, now known as the godfather of cryptocurrency, later founded Digicash, an electronic cash company. He pioneered the first electronic payment in 1994. In 2010, cryptocurrency was first used to purchase a physical product: two pizzas.

The cryptocurrency most people are familiar with today is Bitcoin, introduced in 2008 by Satoshi Nakamoto. “The best-known crypto, Bitcoin, is a secure, decentralized currency that has become a store of value like gold,” says David Zeiler, who works at Money Morning, a financial news site. “Some people even refer to it as ‘digital gold.’” There are 19,000 different cryptocurrencies, including Ripple, Litecoin, Tether, and others. They hold the same value everywhere in the world and their value is primarily determined by how much people invest in them.

Cryptocurrency can be used to buy goods and services. Many people invest in cryptocurrencies. Cryptocurrencies are purchased through websites, apps, cryptocurrency ATMs, and crypto exchanges, such as Coinbase, Kraken or Gemini. “It was once fairly difficult but now it’s relatively easy, even for crypto novices,” Zeiler says. “An exchange like Coinbase caters to nontechnical folks. It’s very easy to set up an account there and link it to a bank account.” Some people earn cryptocurrency through “mining,” which requires advanced computer equipment to solve complicated math puzzles. Cryptocurrency is then stored in a digital wallet---online, on your computer, or on an external hard drive. As with anything digital, there can be risks. A man in Wales accidently threw out his hard drive containing 7,500 Bitcoin (now worth millions). He has appealed to his local government to excavate the local landfill to retrieve his hard drive.

Cryptocurrency accounts aren’t insured or backed by the government and the value changes constantly. According to the FTC, cryptocurrency payments don’t have legal protections and payments are usually not reversible. Cryptocurrency seems to be here to stay, but many countries have strict regulations on exchanges.

Cryptocurrency scammers are constantly finding creative new ways to steal money. Often, the scams “guarantee” big payouts and free money. The scam typically starts with the intended victim receiving an unexpected email, text, or phone call. The scammer may impersonate a person or company that seems trustworthy: a well-known company, celebrity, government agency, utility company, or job recruiter.

According to the FTC’s website about cryptocurrency, these tips can help you avoid falling victim to a cryptocurrency scam:

· “Only scammers demand payment in cryptocurrency. No legitimate business or government will email, text, or message you on social media to ask for money and demand that you buy or pay with cryptocurrency.

· Don’t trust people who promise you can quickly and easily make money in the crypto markets.

· Never mix online dating and investment advice. If you meet someone on a dating site or app, and they want to show you how to invest in crypto, or ask you to send them crypto, that’s a scam.

· Don’t click on a link from an unexpected text, email, or social media message, even if it seems to come from a company you know.

· Never pay a fee to get a job. If someone asks you to pay upfront for a job or says to buy cryptocurrency as part of your job, it’s a scam.

· Scammers might send emails or U.S. mail to your home saying they have embarrassing or compromising photos, videos, or personal information about you. Then, they threaten to make it public unless you pay them in cryptocurrency. Don’t do it. This is blackmail and a criminal extortion attempt. Report it to the FBI immediately.”

If you, or someone you know, fall prey to a crypto con, you can report the scam to:

· The FTC at ReportFraud.ftc.gov

· The Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaint

· The U.S. Securities and Exchange Commission (SEC) at sec.gov/tcr

· The Internet Crime Complaint Center (IC3) at ic3.gov/Home/FileComplaint

· The cryptocurrency exchange company you used to send the money



The safety tips involving cryptocurrency apply to any online activity—even if it’s just sifting through your email inbox. Education is key, along with some common sense and caution. If it sounds too good to be true, it usually is.



____________

Federal Trade Commission Consumer Advice. May 2022. “What To Know About Cryptocurrency and Scams.” https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams. Last accessed October 4, 2022.

Seth, Shobhit. “Explaining the Crypto in Cryptocurrency.” Investopedia, May 15, 2022. https://www.investopedia.com/tech/explaining-crypto-cryptocurrency/. Last accessed October 4, 2022.

April 23 - National Lost Dog Awareness Day

 

An uprise in pet adoptions came during the pandemic. Unfortunately, pet theft has also risen due to criminals capitalizing on the demand for pandemic pups. In 2021 two French bulldogs (Koji and Gustav) belonging to famous singer Lady Gaga, were stollen while on a walk in Los Angeles. The dog walker was injured and hospitalized, but was able to keep one of the three dogs from being taken. Two days after Lady Gaga offered a $500,000 reward the two dogs were returned. They were found tied up in an alley and by a passerby who brought them to a local police station. Why do these thieves go to such lengths?

 

Some pet thieves will resell dogs they have stolen for a hefty sum (especially for pure-bred dogs). Some will steal a dog and attempt to collect a reward from the owner. Sometimes it can even be a disgruntled neighbors looking to get rid of a pet they dislike.

Is your pup at risk to be stolen? According to Tom Sharp, president and CEO of AKC Reunite, thefts often involve high-value dogs, for example Bulldogs and French Bulldogs, and smaller breeds such as Chihuahuas and Yorkshire Terriers. “These types of dogs are easy to grab and run with,” he says. While there is a high demand for certain breeds, criminals looking for a quick buck would likely settle for any unattended dog.

How do you make sure this doesn’t happen to you and your precious fur baby?

§  Get them microchipped. This way if they do go missing or get resold you or a veterinary facility can easily identify them.

§  Get them spayed or neutered. Dogs become less valuable and in turn less likely to be targeted by thieves because they cannot be sold for breeding.

§  Avoid keeping your dog loose or tethered in your yard for long periods of time without supervision. If you have a fenced in yard and allow them to roam freely for periods of time you may consider installing security cameras to catch anyone who may try to take them from the yard.

§  Use a leash as a safety net (even if they are well behaved off leash) so that they cannot run off and end up in the hands of a dog thief.

 

Do not wait! You may think you should wait around to see if they will come back on their own but, if you suspect your dog is missing or has been stolen you should take action to find them/report the missing pet right away. Remember: keep a recent photo of your dog in case they ever do go missing, and make sure to keep your contact information on their tags and microchip up to date.

 

*The Lost Dogs of America (LDOA) organization was established in 2011, and shortly after in 2013 they established National Lost Dog Awareness Day.

 

Safe Online Shopping Recommendations

 

Over the years, it has become impossible to imagine a world in which one cannot buy on the internet. In fact, roughly 85 percent of consumers across the globe have shopped for items on the web. Around 11 million Americans will make purchases online until the end of this year. However, there are many more people interested in purchasing products through electronic commerce, but they seek to do so in the safest and most satisfactory way possible.

In an interview , Dee Studler, a forensic accounting specialist from the Studler Doyle global investigation and forensic accounting firm,  provided some recommendations for those who wish to buy with confidence and security online.

"The first thing we recommend is the preparation of a list of products that they want to buy and based on this the search begins," she said.

The Studler Doyle co-founder indicated that, after this preliminary suggestion, the following advice should be taken into account:

- Verify that the page has a digital security certificate: observe that in the upper left part of the screen there is a small padlock next to the text: 'It is safe'. Also, note that the URL address starts at https: // www ..., in which the letter 's' is important, as it indicates that the website uses a security certificate.

- Use a secure connection: to enter personal data and finalize an online purchase, it is important to use a secure and private internet connection from work or home. The public wi-fi networks, of a shopping center or a cafe, can be used without problems to search for offers in different web portals, but not to enter the data or complete the purchase.

- Check that the portal has a virtual complaints book: make sure that the portal has a complaints book in a visible area of ​​its website.

- Corroborate the available payment methods, costs and shipping time: in addition, to know what the cost of the product is, you must know the shipping cost and time in which the product will be received. All this, before the end of the online purchase process.

- Shipping times and costs vary according to the geographical locations of the company and the client. Keep in mind that certified e-commerce presents alternative card payment options (credit or debit) that should be reviewed before buying.

- Review the exchange and return policies: it is very important to know whether or not you can make changes or returns of the product purchased online, explains the forensic accounting expert from Studler Doyle. Before executing any online purchase, you must be clear under what conditions you can request changes or returns. Even if it is considered necessary, make the respective inquiries to the company through any of its communication channels.

Digital Fraud, the Other Pandemic in America

 

The pandemic caused by COVID-19 has not only been synonymous with precariousness in different basic services worldwide, it has also been synonymous with changes in different aspects of our lives, especially personal and professional. The latter, went from being face-to-face to being remote from our homes, so we had to adapt our lives to continue complying with work demands and to be able to keep our jobs and / or companies.

However, being focused on meeting work objectives has caused us to also neglect other aspects such as being exposed to corporate fraud. Fraud experts from Studler Doyle say that all fraud arises from a combination of three elements: pressure, opportunity, and rationalization.

Advancing Equality – Hispanic Representation in Accounting

 

The need for diversity and inclusion in accounting has long been recognized and, while the profession has made great strides toward inclusive practices, certain challenges remain. The underrepresentation of Hispanic people in finance is one area with room for improvement.

As a longtime advocate of diverse hiring and multilingual offices, SDC CPAs follows the research and discussion surrounding the structural and social barriers preventing minorities from pursuing careers in accountancy.

 

Overcoming Obstacles

In an interview with CPA Journal, the chief ethics and diversity officer of the National Association of State Boards of Accountancy (NASBA), Alfonzo Alexander detailed the issues contributing to the underrepresentation of minorities in accounting.

 

The pipeline into the profession for minorities, particularly African Americans and Hispanics, is limited. There are not enough minority people starting the path because African Americans and Hispanics are traditionally not familiar with the profession. Studies show the profession is a generational profession. Most current CPAs have a family member who is or was a CPA, and that is where the original exposure came from.

 

In the minority communities, where few have close family members in the profession, most of the exposure to the profession comes from outside of the family. As an example, though my own academic background is in business with an MBA, I did not understand upon graduation what a CPA was. Many folks make career decisions in life having heard about accountants as bookkeepers, but not about CPAs. This is the situation with many in the inner city, where so many minorities live, which is why becoming a CPA is seldom considered.

Beyond this exposure gap described by Alexander, lie structural obstacles in the CPA track. The CPA track comes with significant expenses including a bachelor’s degree, postgraduate education, CPA education hour requirements, CPA exam prep courses, and the cost of the exam itself. These costs, with limited funding support, act as a major deterrent for minority students to become CPAs.

Most Hispanic students who graduate with an accounting degree opt to go straight into their careers, rather than take on the expenses of the CPA track. Even if these students go on to pursue the CPA designation later in their careers, it is well documented that individuals with significant gaps between their education and their CPA exam are less likely to pass the exam.

The situation described by Alexander, in which minority populations have little to no exposure to CPAs and careers in finance, illustrates the obstacle that overshadows many others. Structural changes to the CPA track may be important measures to expand opportunities to underrepresented populations, but the impact of those changes would be minimal without initial outreach and exposure to the profession.

Community outreach can be an effective way for accounting firms to begin addressing this issue in their communities. This can include presence at high school career days and local chapters of industry advocacy organizations such as ALPFA. Firm leadership can also work toward addressing representation issues by mentoring junior employees and providing incentives for employees who pursue additional certifications. SDC CPA uses these in-house practices alongside diverse, multilingual hiring to create opportunities and bolster employees’ careers.