Finding hidden assets and unreported income
Abstract: Valuation experts are not responsible for finding fraud unless a client specifically hires them to conduct a forensic investigation. But the business valuation and forensic accounting disciplines often intersect. This article explains the warning signs that controlling shareholders are hiding assets or downplaying cash flow to minimize buyouts of their spouses or minority shareholders and why it’s important to hire a financial expert from the get-go. A sidebar discusses unintentional financial statement omissions — and how they may be unearthed.