Extracting the Core Documents

01The request list

You do not need everything. You need the documents that reconcile to each other, because fraud lives in the gaps between them.

• Federal and state business returns, three to five years, with all schedules and K-1s.
• General ledger and trial balance, exported, not summarized.
• Bank and merchant processor statements — the processor is the honest witness to revenue.
• Accounts payable and receivable aging, plus the vendor master list.
• Payroll registers and the officer compensation detail.
• Loan agreements, personal guarantees, and any UCC filings.
• Operating agreement, cap table, buy-sell agreement, and every amendment.
• Fixed asset schedule and depreciation detail — assets sold quietly still leave the schedule.

02Reconcile revenue three ways

Compare tax return revenue, bank deposits, and merchant processor settlements for the same period. Three numbers that should match and do not is the cleanest finding you will ever hand an expert.