Over the previous three issues of Forensic Accounting Today, I have provided an overview of how law practices account for revenue and expenses, and introduced the background of an actual case study concerning income reporting. In this issue, I am providing the continuation of the case study, focusing on calculation of unreported income. If you…
DetailsIn the last two issues of Forensic Accounting Today, I provided an overview of how law practices account for income and expenses, and introduced the background of an actual case study concerning income reporting. In this issue, I am providing the continuation of the case study. If you would like to review the initial Part…
DetailsIn the last issue of Forensic Accounting Today, I provided an overview of how law practices account for income and expenses, including insight into how an attorney can possibly underreport his or her income. In this issue, I am presenting you with an actual case study concerning income reporting. The basis for this book chapter…
DetailsThe following is an excerpt from “Income Reconstruction: A Guide to Discovering Unreported Income,” published by the American Institute of Certified Public Accountants. It provides insight into how a Forensic Accountant would trace nondisclosed income in one particular type of business. Overview of Law Practices:Reporting Income It is important to understand how law practices account…
DetailsIn some cases, it can be difficult to determine which expenses should be considered as personal or business. There are business owners who are particularly sophisticated in their understanding of financial accounting methods and who may intentionally conceal personal expenses while claiming them as ordinary and necessary business expenses. For example, in a recent case…
DetailsIn litigating many dissolution cases, a material issue is often the determination of the real income of one or both of the parties to the case. The reason? The existence of perquisites and/or fringe benefits. It is common that a significant portion of the income generated from employment or by a self-employed business owner comes…
DetailsBy Ron J. Anfuso, CPA, ABV, CFF, CDFA, FABFA Not all marital dissolution cases require the services of a Forensic Accountant. However, many of the more complicated cases in this ever complex and changing area of law do. Some of the reasons to retain a Forensic Accountant are as follows: When unreported or underreported income…
DetailsMany people hear the term “fiduciary duty” and think it only applies to business relationships. In fact, divorcing spouses owe a fiduciary duty to each other. This means they must deal with each other fairly in the division of their assets, even when the assets include cryptocurrency. The Meaning of “Fiduciary Duty” in a Divorce…
DetailsFourth Appellate District: Michael O’Shea V. Susan F. Lindenberg, et al Presented by Ron J. Anfuso, CPA, ABV, CFF, CDFA, FABFA In a case for child support, after the court awarded O’Shea’s ex-wife what he believed was excessive child support, he filed a legal malpractice action. His most significant allegation of negligence was that Lindenberg…
DetailsBy Ron J. Anfuso, CPA, ABV, CFF, CDFA, FABFA* Case Cite: 53 Cal. App. 17, 199 P. 885Date: May 26, 1921Court: Second Appellate District, Division One This case involved apportionment of community and separate property business interests Background: In March of 1916, when Frank Van Camp married Euphrasia, he was the president and general manager…
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