Operational Forensics

The role of the CFO entails identifying operational issues, evaluating the risks of fraud and working toward ongoing prevention. When serving as the CFO, this is “easier” to manage and control.

However, investors and business partners do not always have the ability to control the financial statements. Thus, for firms that are struggling and investors / business partners that are concerned, I am offering the following services. They can be done in any combination:

OPERATIONAL ASSESSMENT

To provide an assessment of the current state and offer a path forward for the business / relationships tailored to the needs to each investment that all parties can work together to achieve.

Operating Agreement Review – Evaluation of the operating agreement rights and requirements to assess the adherence to those requirements and whether legal advice is necessary.
Financial Review – Evaluating the financial statements and any supplemental reporting for any operational issues that should be the focus of discussion and / or further review.
Vendor Review – Identifying key vendors / contracts that may be resulting in significant costs or warrant attention.
Related Party Review – Reviewing related party transactions and related contracts

DISPUTE RESOLUTION SUPPORT

Hopefully, the operational assessment results in a path forward for all parties. However, disputes do arise. I am offering dispute support and make recommendations based upon the facts and circumstances.

Dispute support – Based upon the operational assessment, assisting investors with a suggested path forward for resolution based upon the facts and rights. This includes discussions with any legal counsel.
Forensic Review – In the unlikely event that serious concerns over fraud result, to the extent possible pre litigation, perform forensic review of the financial transactions to see what, if any, malfeasance has potentially occurred. Unfortunately, when management override occurs, this can be difficult to uncover and takes diligence and persistence.
Litigation Support - If litigation is required, assistance with creation of discovery requests necessary to obtain the requisite information that will help best understand the facts and data necessary to inform what has transpired. Who, what, where, when, how things transpired and the financial impacts of those transactions.