Read more about the current Greenbook proposals. ...
This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.
According to the 2018 ACFE Report to the Nations on Occupational Fraud and Abuse, companies in the professional services industry are most at risk to be negatively impacted by expense reimbursement schemes, billing schemes and check and payment tampering schemes. Over the years, we at Schneider Downs have seen a number of companies impacted by each of these fraud schemes.
Recently, we completed an assignment with a company in the professional services industry that suspected a senior-level manager had been orchestrating a billing scheme by overbilling clients in order to inflate revenues. In investigating the company’s financial activity and billing processes, we discovered numerous issues, in addition to the overbilling.
Billing schemes attack the cash disbursements and payables cycle by making false claims for payment from the victim company. These bogus claims induce the victim company to issue payments for goods or services not received. Fraud perpetrators can accomplish this in a variety of ways:
During our initial review of the company’s financial documents and interviews with personnel, we immediately noticed some red flags, including a lack of segregation of duties, a lack of formalized client billing policies and procedures, the fact that budgets were not prepared or utilized, lack of oversight and an inactive board of directors.
Once we completed the investigation and interviews, we provided our findings and recommendations to improve procedures and internal controls specific to the billing process, including:
If you have any questions regarding potential fraud schemes or internal controls at your professional services company, please contact the Business Advisory group at Schneider Downs.
Read more about the current Greenbook proposals. ...
Learn more about the regional and national supply chain implications of the Baltimore Key Bridge collapse. ...
We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.
Ask us
[email protected]
p:412.261.3644
f:412.261.4876
[email protected]
p:614.621.4060
f:614.621.4062
[email protected]
p:571.380.9003