By Ginny Christie and Charity Weaver In the 1950’s in a dissertation at Indiana University, Donald R. Cressey and Edwin H. Sutherland first proposed the idea of what is now infamously known as The Fraud Triangle. Cressey was interviewing embezzlers, who he referred to as “trust violators”, trying to understand the circumstances that led them […]
By Rob Sanders, CFA, CFE, APA The dictionary defines solvency as “the ability to pay all the money that is owed”. Specific definitions exist in various contexts. A trained financial expert can prepare an analysis (“solvency analysis”) to reach a conclusion of solvency suitable for the context. Solvency analyses support claims in litigation in state […]
By Lorene Becker, CPA, CFE As businesses grow and get more complex, so does the size of their data. Businesses often maintain their data on systems such as SAP, Oracle or their own proprietary software. This data is important in the discovery process, and it is becoming more common for parties in litigation to produce […]
By Tara Sweeney and Jeff Davidson In a stunning collapse reminiscent of Enron, the cryptocurrency exchange FTX, once valued at $32 billion, filed for Chapter 11 bankruptcy on November 17, 2022. The newly appointed CEO, who authorized the Chapter 11 filing and is tasked with maximizing value to FTX’s creditors, was also involved in Enron’s restructuring. […]
Capstone Forensic Group LLC is pleased to announce that Rob Sanders and Jeff Davidson recently became certified as Accredited Petroleum Accountants (APA®) by the Council of Petroleum Accountants Societies (COPAS). COPAS is a professional member association for the industry’s most knowledgeable and influential petroleum accountants. “We are excited to join this distinguished group of accountants and […]
By Rob Sanders, CFA, CFE Companies control and benefit from assets. The assets are financed through advances of debt (borrowing) or equity (owner contributions).[1] Disputes can arise as to the character of a transaction as debt or equity, requiring a comprehensive analysis to resolve. Why does it matter whether a transaction is debt or equity? […]
Starting June 1, 2022, Capstone Forensic Group is officially open for business. Founded by former Compton & Wendler, P.C. employees, Capstone will continue to provide you with the same high quality of service you have come to know from working with our talented set of professionals. Capstone provides a full suite of forensic accounting, litigation […]
By Rob Sanders We often receive questions about how to categorize a financial item. For example, is a royalty fee to a licensor considered revenue? What about the related obligation of the licensee to pay the royalty fee? We find the answers in the correct definitions of accounting terms. For example, the Financial Accounting Standards […]
By Ginny Christie Tracing funds through bank accounts is a complicated exercise, requiring a funds flow assumption. Typically, those commingling their own funds with those not belonging to them are considered to have spent their own funds first, and only then to have begun spending the funds not belonging to them. This is known as […]
