Fraud affects business valuations, too

Description

Abstract: Occupational fraud occurs when someone uses his or her job for personal enrichment through the deliberate misuse or misapplication of an employer’s resources or assets. Such activity can skew financial results and lead to erroneous value conclusions — unless a valuator adjusts the financial statements for fraud. Appraisers don’t audit for fraud in the course of a typical business valuation assignment, but this short article explains that companies can still include them in their overall efforts to prevent fraud.