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Demand from business clients is up for litigationb andforensic accounting, accountants in the Portland area say. Valuatiob work linked to mergers and acquisitionshas fallen. And tighter credit has increased the need for even small privatre businesses to compile financial statements that meet the stricf standards of their larger has seen an increase in lawsuits by shareholderz against individualsand corporations, which has heighteneed demand for forensic accounting and fraud analysis, said Williajm Holmes, managing partner. The Portland firm consulte on behalf of investors in the case against Orego venture capitalistCraig Berkman.
Jurors penalized him $28 million last after concluding that Berkman had misused fundsz and lied abouthis investments. Similarf litigation continues to occupy the Holmes said, though he declinexd to specify open cases. Geffen Mesher & Co. has experience an increase in demand for some anddecreases elsewhere. The Portland firm has historicallu offered valuation work centered around merger andacquisitiob activity, said Mike Rompa, managing shareholder. But mergersa and acquisitions havedried up, cutting into demand for thosd services. Meanwhile, forensic accounting work is up. “During tough economicf times, fraudulent activity does Rompa said.
Business clients are increasingluy calling on Geffen Mesher to revieqw their internal controls and identifyg possiblefraudulent activity. Geffen Mesher is also preparing more complez financial reports for smalpl andprivate businesses. Banks have grown more cautious abou tmaking loans, and increasingly require businesses to submity financial statements that adhere to the U.S. Generally Accepterd Accounting Principles, Rompa said. This has createx work for accounting firms that specialize in smallp andprivate businesses, which historically have not had to use accountinyg principles developed for larger, public companies.
“The more prolific the accountingstandards are, the more difficult the smalled business finds it to complty with those standards,” Rompa said. “The cost of complianc has skyrocketed.” Those stricter standards are the resulr of increased scrutinyon banks, which has createdx work for accounting firm of Portland. The firm countsa a number of banks among its said partnerMark Symonds. As bad loans take a toll on bank balance sheets, state and federal regulators have requiree many banks to conduct thorough reviews of their loans, generating work for the banks’ accountants.
Demanf across business clients is up for strategic planning help, Business clients face slim profit or even losses, and are calling on accountantx to identify strategic moves, Symonds said. “Nobodyu knows how long this recession is goingyto last, but we can help clientsx identify changes they may need to make to business Holmes and Co. has likewise seen an uptick in this kind ofconsultingg work. The firm has adopted a policy of open investing in communications technology to make employeees accessible aroundthe clock. “Clientds have a lot of anxiety abougtheir future, their families, their banking Holmes said.
“We don’t want to creat e more anxiety by notbeing available.”
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