George C. Frederick CPA CFE
My interest in fraud stems from uncovering a number of embezzlements in my career through the normal attestation engagement of the company. One of the most notable was from an elementary school where the school board could not figure out why they were losing money in the school lunch program when they received a government subsidy for providing the elementary students lunch. The sweet, friendly, elderly lady at the end of the lunch line was taking the kids lunch money for herself.
What is a Certified Fraud Examiner?
The Certified Fraud Examiner is a credential of the Association of Certified Fraud Examiners (ACFE). The world-wide network of 75,000 members is challenged with reducing fraud and inspiring public confidence, integrity, and objectivity in business. The CFE has unique skills not found in any other career field. It combines knowledge of complex financial transaction with an understanding of methods, law, and how to resolve allegations of fraud. A CFE must meet rigid academic and professional requirements. The CFE must pass a comprehensive test consisting of accounting fraud investigation, detection, and prevention.
What is a Certified Public Accountant?
The designation of Certified Public Accountant is the title of qualified accountants. The CPA has passed a thorough test on auditing, accounting theory, business law, and accounting practice. The designation means a CPA can render opinions on financial statements. In addition to passing the three day examination an experience requirement is also required. To maintain the CPA license continuing education is required to stay current on accounting, ethics, and tax matters. To perform an attestation (opinion on financial statements) the CPA must submit to a peer review that is administered through the American Institute of Certified Public Accountants (AICPA). The CPA is the only profession that represents the public interest. In that regard, Independence is required from the CPA. In my career I have represented both the company being regulated, and the regulatory body that regulates the company. This representation could be termed “both sides of the issue”. The only way to represent both sides is to be Independent and consistent in treatment of issues.
We used to have this CPA firm from Baton Rouge that kept telling us we couldn’t do it. Then we met Clint and he told us not only that we could do it, but told us how to do it. Now we have another problem. Our estate has now grown to over $150,000,000 and this is the SOB that caused the problem.