A&C’s financial forensic experts provide trustees and bankruptcy counsel, and the debtors or creditors they represent with bankruptcy and reorganization services. A&C focuses on financial analysis of material transactions, the forensic reconstruction of accounting books and records, fraudulent conveyance, solvency and preference analyses, and evaluating plan feasibility in bankruptcy and reorganization proceedings. A&C’s skilled professionals partner with trustees and creditor committees to ascertain whether fraud may be an issue.
A&C also provides business valuations of companies in and/or emerging from bankruptcy, analyses and/or evaluations of debtor cash flow projections and plans of reorganization, analyses of debtor’s pending claims and adversary proceedings, analyses of debtor’s operating results prior to and/or resulting from specific transactions, assistance with post-bankruptcy reorganization and restoration of operations and other services.
Forensic accountants are professionals who specialize and are skilled in tracing cashflows and examining voluminous financial data to discern patterns of fraud and asset concealment.
A&C experts can assist in reconstructing accounting and other business records. Having proper accounting records is crucial to business owners in gaining insight of the true performance of their business.
Fraudulent transfer is a transfer of the debtor’s assets to a third party to obstruct creditors from accessing the assets to satisfy the creditor claims.
Preferential payments are a more subtle method of asset concealment and as such require diligence to trace.
The following three tests are used to determine solvency:
Balance Sheet Test – The balance sheet test determines if, the total fair value of the debtor assets which includes both tangible assets and intangible assets . . .
Bankruptcy fraud ranges from the simple failure to list assets on bankruptcy schedules to the complex schemes such as bust outs, bleed outs and rent/equity skimming.
A forensic accountant has the specialization needed in conducting a detailed review of financial statements, bank documents and other business records, as well as tracing transfers and cash flows across multiple entities and individuals.