Construction fraud schemes / Non-traditional discounts / Financial ratio analysis

• Common fraud schemes within the construction industry:While fraud is always in the news these days, certain industries are more susceptible to fraud than others. According to the Association of Certified Fraud Examiners' (ACFE) 2006 Report to the Nation, the construction industry was in the top 10 in frequency of fraud losses and was in the top five in terms of median loss, with a median loss of $500,000.
• Non-traditional valuation discounts: Valuation discounts are frequently found in a fair market
  valuation report, and the most common are the discount for lack of control and the discount for lack of marketability. However, all valuation engagements have their own set of facts and circumstances and the use of non-traditional discounts may be necessary.
• Financial ratio analysis: Financial ratio analysis involves turning numbers from a company's financial statements into meaningful relationships that provide insight into the company's
  financial condition and operational performance. Financial ratios help to identify a company's strengths and weaknesses relative to other companies and industry norms. They can help to pinpoint trends in improvement or deterioration of the company's performance over time.