The actions that companies take to grow, redirect and otherwise adjust their business portfolio involve numerous analyses of complex accounting issues and their associated decisions. Often the decisions around accounting issues are called into question once a transaction has been completed.
In these cases, Navigant’s forensic accountants bring to bear their knowledge of causation related to alleged fraudulent financial reporting and other potential accounting irregularities in order to uncover the facts. These analyses often address:
- Reserves, allowances, contingencies, goodwill, accounts receivable and inventory
- Transaction tracing records reconstruction
- Generally Accepted Accounting Principles (GAAP)
- International Accounting Standards (IAS)
- Generally Accepted Auditing Standards (GAAS)
- Federal Acquisition Regulations (FAR)
- Cost allocation
Quantification of damages is the foundation of our litigation services. Our experts analyze potential damages issues surrounding numerous matters involving accounting and auditing practices. We have been tested in a wide range of forums on a broad spectrum of issues.
A major energy company needed help when defending against $2 billion in claims related to a spin-off. Our work included several facets of accounting analysis. The team also supported counsel by providing insight to testifying experts, assisting in the deposition of opposing experts, and issuing rebuttal reports. Navigant’s impact helped the company to obtain a dismissal of one case and a settlement in another.
Financial Institution's Exposure to a $50 billion Investment Fraud
Navigant was retained by a leading global financial institution to assist in assessing its exposure to a $50 billion investment fraud. As the custodian for various investment funds that were victims of the fraud, our client faced potential “clawback” claims from the court appointed Trustee for the liquidation of the fraudulent investment entity. Navigant worked across multiple jurisdictions to determine the nature and extent of the transactions undertaken as part of the investment through various master and feeder funds, and prepared evidential documentation in anticipation of legal action.