Tag: Fraud

Posts related to Fraud

  • 09/09/2013
  • Articles
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  • Comments Off on Dealers Beware – Fraudulent Shell Companies may be Eroding the Sands of the Dealership’s Beach

By Marilou C. Vroman, CPA, CFE

Dealerships are viewed as cash cows with deep pockets with substantial assets and revenues flowing through the operation.

As ocean waves subtly carry grains of sand away from the beach, diversion of cash and physical assets may occur in small increments over the course of time, and go virtually undetected. There are many ways a dealership may fall victim to fraudulent activity. With the high volume of transactions in typical dealerships, false billing schemes and fraudulent disbursement schemes paired with the creation of shell companies present a high risk of loss.

  • 08/06/2013
  • Updates
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  • Comments Off on Marilou Vroman has recently earned the Certified Fraud Examiner (“CFE”) credential

Axiom Advisors’ principal Marilou Vroman has recently earned the Certified Fraud Examiner (“CFE”) credential. CFEs have a unique set of skills and are trained to recognize the warning signs and red flags that indicate possible evidence of fraud and fraud risk. CFEs are required to meet high professional and ethical standards, demonstrate specific experience and education requirements, and pass a test covering four disciplines within the fraud examination body of knowledge including fraud prevention and deterrence, financial transactions and fraud schemes, fraud investigation and law. As a CFE, Marilou will bring additional expertise and assurance to our clients in the detection and prevention of fraud. Congratulations Marilou!

Here are some quick payroll and personnel tests to stay better informed of potential risk areas:

FEDERAL WITHHOLDING

Is the company withholding properly in accordance with IRS guidelines? Is any of the withholding being charged to the company? Divide withholding amount into gross earnings by employee. Are any percentages too high or too low? Is there a W-4 on file to support the number of withholding allowances claimed?

By Phil Villegas

Over the past two years, most dealers have had to tackle a myriad of unprecedented challenges.

In September 2008, following the Lehman Brothers collapse, sales completely seized up, and they stayed that way through early 2009 (due to fear of the economy and a lack of lending from banks that were in financial peril).

This sales meltdown led to stockpiles of inventories, followed closely by the Chrysler and General Motors dealership terminations (not to mention stores that simply closed during this same period).

After these historic events, dealers had to confront both the success and the inefficiencies of Cash for Clunkers. Closing out 2009 and through the beginning of 2010 we began to see a stabilization of the economy and marginal increases in sales volume — until this summer.

That’s when new concerns about the economy resurfaced and sales once again began to stagger. Fortunately, this time manufacturers, dealers and banks are [...]

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