Cornerstone Research analyzed accounting and business records for a healthcare-related company.
Counsel for a special committee of the board of directors of a healthcare-related company retained Cornerstone Research in a revenue recognition and financial reporting investigation. We worked with counsel to obtain and analyze accounting and business records for a multiyear period.
To assist counsel and new management with understanding the company’s historical accounting, we recreated the company’s financial statements using detailed journal entry data. We were able to show how a lack of adjusting journal entries for certain revenue transactions led to improper revenue recognition and false financial statements.
We presented the findings to various parties, including the special committee of the company’s board of directors, new management, multiple regulatory agencies, and the company’s external auditors.