Given this cautionary tale, how can auditors combat the threat of false bank contact information? Designing ConfirmationsДЄ while back, my friend James Ulvog brought to my attention the following clarified auditing section about confirmations.Дetermining that requests are properly addressed includes verifying the accuracy of the addresses, including testing the validity of some or all of the addresses on the confirmation requests before they are sent out, regardless of the confirmation method used. After that, the auditor notified the National Futures Association that his audit opinion could no longer be relied upon.

Shepherd ever caught? In March 2013 the auditors вЂњinsisted on verifying the cash balance of fundsвЂ™ bank account electronically through the audit confirmation website Shepherd then refused to give the accountant authority to utilize the site to verify the cash balance. Given the false bank confirmations, how was Mr. So, how were the forged bank statements created? The press release stated that вЂњShepherd generated the fraudulent bank statements using a version of Adobe Acrobat that enabled him to type false numbers over true bank statements.вЂќ The responses came in the form of both letters and faxes. AttorneyвЂ™s Office, Shepherd would receive the bank confirmations, вЂњforge the name Fisher on a fake bank letterвЂќ and вЂњsend forged bank statements with fake balancesвЂќ to the auditor. Additionally, the confirmations were sent to the attention of a вЂњCharles Fisher,вЂќ a fictitious bank employee.ДЄnd who controlled the P.O.

The auditor sent bank confirmations to a P.O. So, how was Shepherd able to get an independent auditorвЂ™s report based on fraudulent numbers? AttorneyвЂ™s Office said, вЂњFor seven years Shepherd used his investment fund as his personal piggy bank and repeatedly lied to his investors who trusted him with their savings.вЂќ The release goes on to say the fraud was concealed as вЂњShepherd sent to investors certified financial statementsвЂ¦accompanied by an Independent AuditorвЂ™s Report.вЂќ The fraudulent December 31, 2012, financial statement reflected a $6,041,850 cash balance when in reality the fund had less than $100,000. The press release states, вЂњDocuments indicate that Shepherd built a $2 million residence in Vass, North Carolina, and used investor money to make mortgage payments on the residence.вЂќ The U.S. Hiding Theft with Fake Bank Confirmation Responses How? By misusing funds and tricking his companyвЂ™s external auditors with fake bank confirmation responses.

AttorneyвЂ™s Office issued a press release on June 17, 2013, detailing how James Shepherd, an investment company owner, defrauded over 100 investors of approximately $6 million. The Western District of North Carolina U.S.

Fake bank statement software