Chris Ekimoff, a forensic accountant who specializes in catching embezzling CFOs and sniffing out corruption, discusses his go-to moves to detect fraud. He shares intriguing cases of financial fraud and embezzlement, emphasizing the significance of tracking spending and providing detailed reports in court. The personal impact and importance of trust in relationships are also explored. From catching criminals like Al Capone to the need for controls and compliance measures, this podcast offers a fascinating insight into the world of forensic accounting.
Forensic accountants follow a detailed process, including admission-seeking interviews, to uncover fraudulent activities and bring justice to affected parties.
Maintaining a balance between trust and oversight is crucial for forensic accountants, who employ various techniques, such as reviewing invoices and examining payment processing, to detect fraud and contribute to the financial well-being of organizations.
Deep dives
Uncovering Fraud: The Case of the Embezzling CFO
A forensic accountant, Chris Ekamov, shares a case in which his firm was contacted by a CEO about the CFO's suspicious activities. The CFO had been found embezzling money from the company by charging personal expenses as travel expenses. However, due to the pandemic, travel expenses were no longer feasible to fake. The CFO then shifted his embezzlement tactic and coded the expenses as an additional payroll expense. During investigations, forensic accountants follow a thorough and robust process of understanding the circumstances, working internally with their team, and gathering financial information. They also conduct admission-seeking interviews, wherein they confront suspects with evidence. While some individuals deny their actions, many confess due to the relief of being caught. Additionally, forensic accountants work alongside civil and criminal law, helping businesses recover stolen funds and advising on legal actions. The prevalence of fraud is estimated to be around 5% of a company's top-line revenue. Trust is often an important factor in fraud cases, as the most trusted individuals can often exploit their position of access and authority. Despite the challenges, forensic accountants like Chris are dedicated to rooting out fraudulent activities and bringing justice to the affected parties.
Balancing Trust and Oversight
Forensic accountants, like Chris, face the challenge of maintaining a balance between trust and oversight. Organizations often place trust in their employees, which can create vulnerabilities that fraudsters exploit. The lack of consistent oversight or the failure to question seemingly trustworthy individuals can lead to fraudulent activities going undetected for years. However, forensic accountants employ various techniques to detect fraud, including reviewing invoices and receipts for anomalies, examining payment processing, and interviewing suspects. They analyze financial information meticulously, looking for signs of fraud, such as discrepancies, irregular patterns, or inconsistencies. While some cases may lack concrete evidence of fraudulent intent, establishing the intent is crucial to proving fraud in a court of law. By paying attention to the details, forensic accountants uncover fraudulent activities and contribute to the overall integrity and financial well-being of organizations.
The Emotional Impact of Fraud Investigations
Engaging in fraud investigations can have an emotional impact on forensic accountants. Chris recounts a case where a headmaster embezzled a substantial amount of money from a private school, resulting in its closure. The investigative work involved understanding what could be recovered from the headmaster and any insurance policies tied to the fraud. While seeking financial recovery is crucial, forensic accountants also consider the effects on the victims, such as the students who paid tuition and suffered due to the school's closure. Balancing efficiency and effectiveness, forensic accountants strive to reach a resolution that helps victims recover financially and move forward. While emotionally challenging, cases like these highlight the meaningful impact that fraud investigations can have in delivering justice and enabling individuals and organizations to recover from the aftermath of fraud.
The Importance of Financial Controls and Compliance
Fraud statistics indicate that around 5% of a company's revenues can be attributed to fraud. This highlights the importance of financial controls and compliance measures. Companies implement controls and oversight mechanisms to prevent and detect fraudulent activities. However, the fear of fraudulent incidents can lead organizations, particularly non-profit entities, to avoid reporting or taking legal action due to concerns about reputational harm. Forensic accountants play a critical role in helping organizations navigate these challenges. They uncover fraudulent activities, advise on recovery options, and consider the cost and benefits of pursuing criminal or civil charges. By integrating financial controls and compliance practices, companies can proactively mitigate the risk of fraud and safeguard their resources and reputation.
Catching embezzling CFOs, sniffing out a corrupt private school headmaster, and sifting through fake invoices with Chris Ekimoff, a forensic accountant. What are his go-to moves to detect fraud? And who is the most famous forensic accountant (besides Ben Affleck)?
NEW BOOK ALERT! You may be aware that I’ve written or co-written five business books, including The Power of Moments and Made to Stick. I’ve got a sixth book out now called RESET: How to Change What’s Not Working. It’s a book intended to help you and your team get unstuck, to overcome the gravity of the way things have always worked. Learn more about the book and order it here. You can also listen to it on Audible and at Apple Books.
Got a comment or suggestion for us? You can reach us via email at jobs@whatitslike.com
Want to be on the show? Leave a message on our voice mailbox at (919) 213-0456. We’ll ask you to answer two questions:
What do people think your job is like and what is it actually like?
What’s a word or phrase that only someone from your profession would be likely to know and what does it mean?
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
