When assertions of error in financial statements are made or when the conduct of professionals is challenged, it is imperative that those assertions and challenges be evaluated by competent professionals who will call it as they see it. That competency and integrity define the practice and professionals at Veris.
Our engagements have involved highly publicized accounting and financial reporting scandals, including allegations of accounting and auditor malpractice. We have provided expert opinions regarding conformity with generally accepted accounting principles on matters such as fair value accounting for complex financial instruments, accounting for special purpose entities and accounting for and disclosures related to loss contingencies and asset impairments.
We have given expert testimony in defense of the presentation of financial statements and in defense of auditor compliance with relevant professional standards. In other circumstances, we have provided expert analysis and testimony that previously issued financial statements had been materially misstated and that auditors had failed to discharge their responsibilities under generally accepted auditing standards.
It is imperative that we maintain a rigorous, careful study and evaluation of the facts, circumstances and merits of each case and a dedication to uncompromising integrity.
Auditor Conduct and Financial Statement Misstatements
- Retained in connection with assertions regarding conduct of auditors and financial statement misstatements including such areas as:
- Loss reserving
- Internal control adequacy
- Asset valuation
- Complex derivatives
- Finite reinsurance
- Related party transactions
- Loan losses
- Liquidity disclosures
- Disclosures of risks and uncertainties
- SFAS No. 5: Loss Contingencies
- Real estate valuations
- Mortgage loan valuations
- Solvency measurements
- Business combinations
- Goodwill accounting
- Use of specialists
- Substance over form determinations
- Fair value measurements
- Engaged by the SEC to evaluate issues of financial statement misstatements having to do with valuations of purportedly rare stamps and questions of related party transactions and the duties of the company CFO. Deposition testimony provided.
- Engaged on behalf of a large American-based, telecommunications company in litigation to evaluate whether revenue recognition and loan loss impairments were correctly accounted for and disclosed in accordance with GAAP as it relates to loans to an entity in a geographically emerging market. Deposition testimony provided.
- Engaged on behalf of a software sales company to assist with allegations pertaining to improper revenue recognition accounting for sales of software products due to the existence of continuing performance requirements. Arbitration testimony provided.
- Engaged to assist in evaluation of issues of aiding and abetting as it relates to revenue recognition and related party transactions.
Post-Purchase Price Disputes
- Engaged in multiple post-purchase price disputes in which Stock Purchase Agreements (“SPA”) outlined the terms of the sale and included price adjustment mechanisms. Veris was involved in assisting with both calculating those post-purchase price adjustments as well as evaluating whether the financial statements on which the purchase price was based were free from material misstatement.
Accounting for Special Purpose Entities, Accounting for Derivatives
- Engaged on one of the most high-profile accounting scandals in history to evaluate the use of and accounting for special purpose entities, as well as the accounting for derivatives and “true sale” transactions. Deposition testimony provided.
Financial Statement Disclosures
- Engaged in a litigation involving the auditor of a finance company that issued and securitized loans to sub-prime borrowers. The engagement involved examination of the accounting for and auditing of financial statement disclosures related to forbearance, provisions for credit losses and reserves and various aspects of the company’s loan securitization activity, including the fair value of certain complex investment securities.
Auditor Malpractice Claims
- Engaged to evaluate malpractice claims against the auditor of several large bankrupt publicly-traded companies that had been engaged in banking, brokerage, insurance and lending services. Veris evaluated accounting and auditing practices, particularly related to franchise fee revenue recognition and the allowances for uncollectible loans. Veris was subsequently engaged by counsel for the bankruptcy trustee to extract and analyze millions of transactions from the company’s management system to support claw-back claims against insurance carriers, franchisees, securitization trusts, banks and other financial institutions.
Investment Company Financial Statements Review and Evaluation
- Engaged to review and evaluate financial statements of investment companies registered with the SEC under the Investment Company Act of 1940 as well as evaluate the conduct of the auditor in connection with those audits. This review included an evaluation of the adequacy of internal controls as well as the use of portfolio managers, investment advisors and reliance on third party custodians.