Forensic Accounting Report



March 5, 2013

WeGotYa Forensic Investigations

P.O. Box 1234

Ontario, Canada

Bright Designs Proprietary Theft Case

Forensic Accountant's Report

03/2001 Thru 03/2013

The Forensic Accounting Report attached details the findings concerning the issue of property theft in Bright Designs because of my engagement with the company upon request of Mr. John Smith. The receiver of the report is DeeDee, the sole shareholder of the company. The attached report entails the scope of responsibilities and the investigatory action undertaken in order to fulfil these responsibilities. The effective date of this forensic report is March 5, 2013.

Mandate

This report has been prepared after a critical review and analysis of the information and financial statements of Bright Designs based in Kanata, Ontario, Canada. The report was requested by the company in order to identify suspicious theft of proprietary information that could severely affect the future of the technology in regards to its intellectual property theft and exploitation by the competitors.

Bright Designs provided all relevant documents, while others were identified and analysed to gain a broader perspective of the issue at hand. I have collected information that has been processed under the expert opinion of third party specialists. I have also interviewed the witnesses, employees and concerned individuals of the case. The analysis of most of the documents and their relevance to the case has been carried out at my main office of WeGotYa Investigations.

Scope

The report has been prepared after analysing a series of documents and financial evidences from Bright Designs and third parties. The report covers the period from March 1, 2000 to March 31, 2013.

Owing to the nature of information that was required for this case analysis, some receipts and financial transactions could not be traced back or found in the electronic records of the system. These have therefore been excluded from the analysis presented. Verification of all the information, along with evidence-based analysis is also subject to certain limitations as contradictory opinions were found between that of the managerial staff and the auditors who claim that they had been fired. I believe that these auditors had little knowledge or indication of the financial standing and the potential of a fraud in the company and therefore could not provide me with accurate up-to-date information or evidence concerning this case. The element of personal bias owing to the company's laying-off policy also must be considered while analysing this case and while conducting interviews of the staff. I realize that while the decisions are tough for such companies, employee support and positivity in indeed hard to gain. The same has been considered in performing an unbiased investigation for this case and report.

Background

As a manager at WeGotYa Investigations, I was contacted by Mr. John Smith, the CEO of Bright Designs; a computer software development company. Mr Smith had no past business experience and had been assigned to the job by the sole shareholder DeDee based on trust. By the late 1990's the company embarked upon sales exceeding $5 million. I was informed by ...