Financial Investigations & Due Diligence

Financial Investigations

Complex business situations, investigations by regulators or the police and allegations of fraud or misconduct are the kinds of circumstances that could lead to a financial investigation.

Whether dealing with a case of misappropriation of funds or reporting irregularities, financial investigation expertise is vital. Investigative accounting can provide the facts to assist in answering the question, What happened?

We use the same investigative mindset to carry out financial due diligence activities in purchase and sale transactions.

As forensic accounting specialists, Wintrip Consulting, Inc. has the expertise to assist our clients in a wide variety of situations, including the following:

  • Financial statement manipulation;
  • Investigation into the misappropriation of assets;
  • Procurement fraud;
  • Professional negligence;
  • Employment conflict (fraud or wrongful dismissal); and
  • Financial crimes including money laundering and embezzlement.

 

While every investigative engagement is unique, our typical approach can be described as follows:

  • Meet with the client and counsel to understand the situation at hand;
  • Establish the scope and terms of the engagement;
  • Develop an investigative work plan specific to the situation at hand;
  • Prepare a list of preliminary information required to conduct the investigation;
  • Conduct interviews of key individuals involved in the matter at hand;
  • Review information that has been accumulated, verify facts presented during interviews, identify further information requirements and summarize findings;
  • Prepare a report of findings where necessary; and
  • If required, attend at trial or other proceedings to communicate findings

As forensic accountants we are called upon by investors in financial transactions to review the perceived high risk areas of the acquisition. We have the business and accounting knowledge and background to be able to identify the risks of a transaction and then report to our clients on those risks so they can be properly addressed and mitigated.

We also have considerable experience in compliance reviews. For a business or organization to function properly, a set of rules and procedures governing the actions of its constituents is often put in place. With our investigative mindset, we are able to provide organizations with a review of those policies and procedures and report on the extent to which they are or are not being followed. Government offices, enforcement agencies and professional organizations are just a few examples of organizations that must comply with a set of standards to be held accountable to the stakeholders or the regulatory bodies for those organizations.

  • Retained by an agency of the Government of Ontario to provide an independent review of the financial results of an electricity generator pursuant to an agreement between the parties.
  • Retained by the Professional Conduct Committee (PCC) of the Institute of Chartered Accountants of Ontario to investigate complaints filed against members of the institute. Provided evidence before the PCC.
  • Conducted an investigation into the corporate structure of a privately held company to assess the ability of the company to shield itself from the exposure of monetary judgment in pharmaceutical patent infringement litigation.
  • Conducted financial due diligence procedures on companies and projects as part of applications for government loans and grants across a variety of industries.
  • Conducted an investigation into financial transactions in relation to a Proceeds of Crime Restraint Order.
  • Conducted an investigation to discover how a municipality came to lease computer equipment and under what terms. Assisted the municipality buy out the lease after finding that the interest rate implied by the terms of the lease exceeded the negotiated rates.
  • Developed and performed due diligence procedures in assisting a client in its acquisition of engineering consulting businesses across Canada with aggregate value in excess of $100 million.
  • Conducted an investigation into an alleged payroll fraud undertaken by a payroll clerk at a private golf club.