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Forensic Accounting for Divorce Engagements: A Practical Guide Second Edition

Author: Donald A. Glenn, CPA/ABV, CVA, CFE; Ezra Huber, Esq.
Publisher: AICPA
Availability: In Stock
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Description

Divorce — even "friendly divorce" — is a stressful, emotional, and difficult process. When one spouse takes advantage of the other spouse to obtain a better financial settlement by intimidation, concealment, deceit, or breach of spousal duties, it may be characterized as fraud. Forensic CPAs should be able to discover, disclose, and assist the attorney in property recovery or rights obtained improperly or by fraud.

Taking up where A CPA's Guide to Family Law Services (Business Valuation/Litigation Services Practice Aid 05-1) leaves off, Forensic Accounting for Divorce Engagements: A Practical Guide features example-type situations and it also discusses the applicability of these situations. Designed as a full-spectrum, how-to reference for divorce engagements, the second edition of this Guide takes the forensic CPA through the investigation process and delves into:

  • Role of Forensic Investigator — Accepting the assignment; roles of the client, attorney, and CPA.
  • Divorce and Property Division — Divorce process; available legal tools; prenuptial agreements.
  • Business Assets — Which documents are important and how they are used in conjunction with financial records; dealing with cash businesses.
  • Common Problematic Transactions — Personal expenses paid by business; inventory shrinkage; delay in invoicing customers; large unusual purchases and events.
  • Fraud and Misstatements — Decline in profit due to Cost Price or Volume changes, personal expenses hidden from disclosure, false vendors or employees and other fraud schemes.
  • Marketing Forensic Services — Practical suggestions to market forensic services.
  • Appendix (Templates) — Documents requests, deposition questions, and data organizing templates.

For general information on family law, refer to A CPA's Guide to Family Law Services, Practice Aid 05-01, which describes the range of CPA services that could be performed in family law, and the CPA's role in family law litigation. In contrast, Forensic Accounting for Divorce Engagements: A Practical Guide begins where the Practice Aid leaves off: it is a comprehensive guide to the full spectrum of marital fraud.

Table of Contents

  • Chapter 1 Why Is Forensic Accounting So Important?
    • The Setting
    • The Role of the Forensic Investigator
      • Establishing Professional Relationships With Matrimonial Attorneys
      • Expectations of the Forensic Expert
      • The Engagement Process
      • Cooperation of the Parties
      • Agreeing to the Engagement
      • Fee Structure
    • Summary
  • Chapter 2 Matrimonial Actions and Property Division: Understanding the Procedures
    • Introduction
    • Basic Matrimonial Litigation Procedure
      • The Preliminary Phase of the Lawsuit
      • The Discovery Process
    • Distribution of Marital Property
      • Community Property
      • Equitable Distribution
      • Prenuptial Agreements
    • Summary
  • Chapter 3 How to Investigate Business Assets
    • Introduction
    • The Role of the Forensic Accountant in Evaluating the Business
      • Overview of Different Types of Business Entities
    • Beginning the Investigation
      • Obtaining the Necessary Documentation
    • What Documents Should You Begin With?
      • Business Tax Returns
      • Business Agreements and Contracts
      • Books and Records of Corporate Ownership
      • Company Financial Statement
      • Appointment Book
      • Documentation Duality
      • Loan Documents
      • Insurance Papers
      • Bank Records
      • Financial Statement Manipulation
    • Summary
  • Chapter 4 How to Examine and Analyze Specific Transactions and “Red Flags” to Watch For
    • What Is at Stake
    • Salary
    • Capital Investments and Withdrawals
    • Evaluating the Propriety of Otherwise Legitimate Business Writeoffs
      • Automobiles
      • Travel and Entertainment
      • Personal Expenses Written Off on the Business
      • Petty Cash
      • Suspense
      • Utilities and Telephone
      • Furnishings
      • Insurance
      • Rental Payments
      • Repairs
      • Prepaid Expenses
      • Miscellaneous Expenses
    • Inventory
    • Large One-Time Purchases
    • Other Adjustments for Purposes of Calculating Value
      • Nonrecurring Items
      • Recent Moves
      • Things That Might Temporarily Drive a Business Into Decline
      • Litigation
    • Depreciation
      • Fully Depreciated Assets
      • Real Estate
    • On-Site Inspections
    • Summary
    • Case Study
  • Chapter 5 Beyond the Unallowable and Into the Land of Sham
    • Introduction
    • Self-Dealing and Inter-Family Dealings
      • Sudden Increases in the Cost of Supplies Without a Corresponding Increase in Prices Passed on to the Customer
      • Sudden Decrease in the Gross Income Without a Corresponding
      • Decrease in the Cost of Labor or Supplies
      • Sudden Appearance of New Suppliers or New Customers
      • New Customers Immediately Replacing Nearly Identical Old Ones
    • Investigation of Receivables, Payables, and the Like
      • Accounts Receivable
      • Accounts Payable
      • Notes Receivable
      • Notes Payable
    • Other Areas to Investigate: Multiple Bank Accounts, Reason for Business Income Decline
      • Multiple Bank Accounts and Their Abuse
      • Income Squeeze: Turning Off the Income Spigot
    • Bad Debts and Spoilage
      • Bad Debts
      • Spoilage
      • Judgments Against the Company
    • Summary
    • Case Study
  • Chapter 6 Special Problems of Dealing with Cash Businesses
    • Knowing the Business Under Investigation
      • Typical Markup or Profitability
      • Ordinary Costs of the Business
    • Typical Cash Businesses
      • Laundromat
      • Bar
      • Hair Salon
      • Restaurants and Other Food Establishments
    • Determining Cash Payment From “Improbability” of Actions
    • Calculating Cash Received on the Basis of Cash Deposits Actually Made
      • There Might Be Too Little Deposited for the Type of Business
      • The Pattern of Deposits Might Be Too Consistent, the Same Amount Being
      • Deposited Every Time
      • They May Be Too Inconsistent
    • Summary
  • Chapter 7 Undisclosed Income from Personal Lifestyle Investigation
    • Introduction
    • Purpose of a Lifestyle Analysis
    • Personal Lifestyle Analysis Concepts
    • The Broad Overview—Tax Returns
      • Income Tax Returns Form: 1040 (Personal), Form 1041 (Trust), Forms 706
      • and 709 (Estate and Gift)
      • Interest Income/Dividend Income
      • Tax Refunds
      • Alimony or Child Support Received or Paid
      • Pensions and Annuities
      • Other Income
      • IRAs and Other Retirement Contributions
      • Other Adjustments to Income
      • Tax Credits
      • Tax Payments
    • Schedules to Form 1040
      • Schedule A—Itemized Deductions
      • Schedule B—Interest and Dividends
      • Schedule C—(Business Income) and Schedule F (Farm Income)
      • Schedule D—Capital Gains and Losses
      • Schedule E—Rental Properties, Partnerships, and Other Arrangements
      • Other Schedules
      • Amended Returns
      • Estate Returns
      • Trust Income Tax Returns
    • Other Documentation
      • Bank Records
      • Cancelled Checks
      • Bank Deposits
      • Income Expected but Not Included
      • Gifts and Inheritances
      • Examining Personal Expenses
      • W-2 Forms and 1099s
      • Charge Card Records
      • Safe Deposit Box Records
      • Brokerage Account Records
      • Loan Applications and Financial Statements
      • Rental Real Estate/Separate Spousal Property
    • The Personal Lifestyle Analysis
      • Uncovering Lifestyle Changes
    • Summary
  • Chapter 8 Marketing Forensic Accounting Services
    • Introduction
    • Identifying Your Market
    • Methods of Generating Business
      • Referrals
      • Seminars and Other Speaking Engagements
    • General Marketing Materials
      • Business Cards
      • Brochures
      • Newsletters
      • Rolodex Cards
      • Giveaways
      • Other Incentives
      • Endorsement Letter
      • Direct Mail Solicitation
      • Advertising
  • Table of Appendixes
    • A Engagement Letter for Litigation Services
    • B Interrogatories
    • C Document Request for Bank and Brokerage Account Records
    • D Request for Documents Regarding Income and Other Financial Information
    • E Business Valuation Information Worksheet
    • F Request for Documents Regarding Marital Standard of Living
    • G Investigative Inquiries or Deposition Questions Regarding
    • Undisclosed Income
    • H Typical Deposition Questions of an Accounting Expert
    • I Request for Personal Tax Documents and Related Information
    • J Demand for Real Property Documents and Records
    • K Real Property Questionnaire

Excerpts

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Paperback 2005
Product# 091019
Availability:In Stock
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