Forensic Accounting: A Tool for Uncovering Fraud That Can Threaten a Company’s Existence
In the world of small and medium-sized enterprises (SMEs), it’s often assumed that fraud is “a problem for the big players.” However, statistics show a different reality – smaller companies are frequently targeted due to weaker internal controls. For example, nearly 30% of all fraud in the SME segment occurs in the area of invoicing.
In the past, for example, by analyzing a client’s supplier portfolio, we uncovered an unusual interconnection between several companies that, in total, were delivering goods and services for significant sums. It was later revealed that a hired manager—who had the full trust of the owners—was using this setup to siphon off much more money through “expenses” than his already generous salary. For the owner, this discovery was both surprising and disheartening.
Trust between a company owner and its management is a key asset – often more valuable than the numbers on a balance sheet. It forms the foundation for strategic decisions, investments, and long-term development. But blind trust without adequate oversight can be dangerous.
Unfortunately, in practice we encounter situations where management – under pressure to deliver results or driven by other motives – crosses the line into improper accounting. And the owner only finds out when it’s already too late.
Trust doesn’t conflict with control. On the contrary – transparent processes, independent audits, and open communication create an environment where trust can grow in a healthy way.
One of the most effective tools for maintaining control and building trust is forensic accounting – a specialized field that combines accounting, analytical, and legal tools to detect and prevent fraud.
Some of the most common warning signs that should raise concerns and potentially lead to a forensic audit include:
- Sudden changes in accounting methods, often without proper explanation
- Missing documentation, e.g., for major transactions or contracts
- Last-minute accounting adjustments, especially before closing periods
- Discrepancies between reports, confirmations, and actual performance
- Unusual or overly close relationships between company management and the auditor
- Signs of “creative accounting,” such as exaggerated write-offs, fictitious revenues, or manipulated asset valuations
These indicators do not always mean intentional fraud, but their accumulation is a strong reason to conduct a thorough review.
Protection is possible – from properly set up internal controls, through regular audits, to modern analytical tools that help identify manipulations before they cause damage.
Forensic accounting is not just a crisis management tool – it’s a strategic part of business protection that helps build trust, transparency, and long-term stability.
At Intras Consulting, we help companies identify risk areas in accounting, conduct in-depth analyses, and set up control mechanisms to minimize the chances of errors or intentional manipulation. If you have suspicions or simply want to be sure everything is in order, we’re happy to take a look with you.
Forensic accounting is not just a tool for crisis – it’s an investment in trust and stability