Forensic Accounting and Investigations

Berkeley Research Group’s forensic accounting experts bring decades of experience in assisting attorneys and clients in financial investigations and complex litigation. BRG provides clients with a valuable combination of industry and technical expertise.

BRG's multidisciplinary team of professionals includes Certified Professional Accountants, Certified Fraud Examiners, experts who are Certified in Financial Forensics, valuation experts, statisticians, former Big Four partners, law enforcement officials, and U.S. Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board officials with deep experience conducting independent investigations of alleged accounting and financial reporting fraud, misappropriation of assets, or payment of bribes.

INVESTIGATIONS

Time is of the essence when a company is investigating allegations of potentially fraudulent reporting, transactions, and behaviors. Every move made from the point that a potential issue is discovered will come under scrutiny from regulators, auditors, and investors. Retaining the services of experienced forensic investigators to unravel complex accounting issues, well-disguised fraud schemes, and other high-risk transactions is essential to the successful resolution of an investigation.

Our deep technical and industry expertise coupled with our ability to conduct efficient and highly productive investigations allows us to quickly deploy  appropriate resources in a scalable and cost-effective manner. We help clients to both find answers to complex issues and communicate that information to board members, outside auditors, and government agencies.

Restatements

Timing is also critical when companies discover potential errors or fraud that would result in their financial statements being materially misstated. From confirming whether the item in question is a material error to assessing its internal controls over financial reporting to complying with required regulatory filings (e.g., Form 8-K), management must react quickly while continuing to operate its business. BRG experts can assist with the development of a project plan that includes quantitative and qualitative analyses, assessment of the potential error, determination if fraudulent behavior is involved, assessment of impacts on internal controls over financial reporting, need for public disclosure in regulatory filings, preservation of written and electronic evidence, and escalating the issue to the audit committee. We provide guidance to companies and boards in the evaluation of whether technical accounting issues have been properly addressed in public financial statements. Our professionals have led numerous investigations dealing with issues such as revenue recognition, adequacy of reserves, and stock‐based employee compensation expense.

Anti-Corruption and Compliance

Our forensic experts have significant experience working with special committees, outside counsel, and compliance departments investigating allegations of bribery and corruption. These matters include reactive engagements pursuant to a government subpoena, proactive compliance reviews and pre- and post-acquisition due diligence analysis of anti-corruption risk. We have expertise in the application of forensic tools used to identify anomalous transactions and high-risk relationships, allowing us to efficiently uncover prohibited behaviors designed to “hide in plain sight.” 

EXPERT WITNESS TESTIMONY

BRG experts translate complex analyses into simple, effective exhibits and clear testimony. We work with clients and counsel to assess the relevant issues and  develop sophisticated yet understandable analyses. Wherever possible, we attempt to leverage client resources to develop relevant, reasoned, and well-supported opinions in a cost-effective manner.

An experienced testifier’s ability to present findings in a clear and objective manner is invaluable to the trier of fact. BRG professionals have testified in hundreds of matters in federal and state courts and before arbitrators and mediators.

Accounting Malpractice Litigation Defense

In the post Sarbanes-Oxley era, restatements of financial statements, allegations of fraud or negligence, and other events often result in litigation against company officers, board members, and auditors. BRG experts work with legal counsel to evaluate accounting and auditing issues to assess whether judgments made appear reasonable under the facts and circumstances, and to identify potential defense strategies. As accounting becomes more principles based, second guessing management and auditor judgment, board-of-director oversight, or both will likely increase along with increased litigation. BRG experts have considerable experience defending such actions.

White Collar

The high‐stakes nature of white collar projects demands experts with the ability to unravel complex accounting issues, uncover misappropriated assets, and a proven track record of explaining these matters in a way the trier of fact can understand. Our professionals have been involved in numerous matters involving criminal prosecutions and SEC actions against executives, as well as derivative and securities class actions.