Amy’s work has comprised various forensic accounting projects including internal investigations; Securities and Exchange Commission enforcement actions; Department of Justice investigations; technical accounting analysis, support, and review; and post-purchase acquisition disputes. Through those engagements, Amy dealt with technical accounting issues including revenue recognition (SAB 104, SOP 97-2, EITF 01-9, Bill and Hold sales, and Channel Stuffing), judgmental reserves, accounting for contingencies, assessing materiality, treatment of accounting changes, and impairment.
- Led the accounting investigation into short-seller allegations of financial statement fraud at a public company. Responsibilities included leading the team of investigators to develop the facts and identify potential accounting issues through electronic evidence and witness interviews. The engagement also included the assessment of the company’s internal controls. Ultimately, accounting issues were identified regarding the company’s recognition of revenue, classification and timing of expenses, and other sales practices. As a result of the various issues identified, the company restated its financial statements. The team assisted the company in its cooperation with investigations conducted by the SEC and the Public Company Accounting Oversight Board.
- Led the accounting investigation of a foreign division of a public medical device company where an employee indicated that irregularities had occurred. Untangling the scheme required examining the source documents, data within the financial systems, and manual journal entries, and identifying spreadsheets used to keep track of the second set of books. Ultimately, the schemes were perpetrated largely through various premature and/or false transactions in the sales, inventory, fixed assets, and accounts payable accounts. In addition to developing the facts and outlining the methods by which the schemes were executed, Amy’s team assisted the company in responding to the SEC’s inquiries in connection with their investigation.
- Assisted the chief financial officer of a public offshore marine servicing company in defending the company’s decision to write down certain assets. The SEC questioned the timing of the decision, suggesting that the company inappropriately delayed its assessment and write-down determination. Responsibilities included analyzing the facts, preparing analyses to demonstrate the reasonableness of determinations made by the company, and advising the client in its discussions with the SEC with regard to the allegations.
- Assisted a public financial institution in its defense of an SEC inquiry triggered by a whistleblower. The allegations related to questions about judgments made in connection with a loan loss model and the underlying inputs. The allegations were for the two quarters preceding the Great Recession. Responsibilities included gathering and analyzing the facts, understanding the loss model and inputs, assisting the attorneys and the company in understanding the underlying accounting guidance and strengths and weaknesses of the case, and preparing the submission and presenting it to the SEC.
- Led the investigation into company allegations of an overbilling scheme perpetrated by an employee and technology vendor. The scheme involved a technology consultant for whom the employee was responsible for hiring and supervising. As a result of the investigation, kickback arrangements with two additional technology vendors were discovered. The investigation included the review and acquisition of evidence, interviews of witnesses, forensic analysis, and preparation of an expert report. Upon submission of the expert report to the defendant, the parties engaged in settlement discussions, and a settlement was reached prior to trial.
- Led the forensic investigation of several Madoff investors suspected to have known of the fraud. Responsibilities included culling through and examining the available manual and electronic records to identify facts related to specific transactions to help the attorneys build the evidence for clawbacks. Amy also led the effort to identify and give credit to Madoff investors who had contributed “real” securities.
- Assisted a public accounting firm in the defense of an audit malpractice suit brought by a multihospital healthcare system. Responsibilities included analyzing the adequacy of healthcare accounts receivable, reviewing audit work papers, determining compliance with generally accepted accounting principles (GAAP) and generally accepted auditing standards (GAAS), analyzing subsequent receipts for collectability, reviewing and analyzing complainant’s expert reports, identifying forces impacting the market, comparing the financial statement performance of the client to industry benchmarks, and preparing trial demonstratives to explain complex accounting transactions to the arbitration panel.
- Assisted a private company that was acquired by a public company in defense of its preacquisition accounting practices. The dispute involved questions about revenue recognition, expense recognition, and other specific accounting policies. After completion of an extensive report, the companies settled on favorable terms.