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Mornings unPHILtered - Talking politics and forensic accounting
MorningsUnfiltered
    The first guest on Monday's "Mornings unPHILtered" show was Don Berencz. Berencz is the director of Forensic Studies in Accounting at Georgia Southern University and he also teaches forensic accounting.
    Berencz told host Phil Boyum the field focuses on two areas of study.
    The first, investigative accounting looks into criminal matters. Investigations typically involve employee theft, and securities and insurance fraud. The second, forensic accounting, provides litigation support by serving as consulting or testifying experts on fraud-related matters in the court system.
    Investigations are started often when “whistleblowers” who complain about illegal and/or illegal practices of the company or people in it. Sometimes, the company's own accountants or auditors discover something is not right within the company.
    Behavior, Berencz said, is a really good way to detect that someone is doing something questionable. If someone suddenly starts spending lots of money that they never had before or if someone never leaves their job because they fear that if they were to do so someone would discover their activities.
    Company accountants review yearly and monthly expenditures, to see if amounts increase unexpectedly or if they are not properly documented. The best-known example is the recent Bernie Madoff scandal.
    Madoff's claims of high investment returns year after year just didn't make sense, when compared against the market averages. Upon closer examination, his claims proved to be completely fraudulent.
    Next, Boyum welcomed Carl Smith to the program. Smith is running for the Republican nomination in next year's Congressional race in Georgia's 12th District. Democrat John Barrow is the three-term incumbent.
    Smith said he is not as professional politician. He is a third-generation professional firefighter who has been Thunderbolt's fire chief for 16 years. Smith was elected to the posts of president of the Savannah, Chatham County and then the Georgia Association of Fire Chiefs. In June 2007, he was elected to serve as president of the Southeastern Association of Fire Chiefs.
    As fire chief, Smith led area rescue teams to the cities of Charleston, New Orleans and Biloxi after major hurricanes hit. Smith has also served as a city councilman in Thunderbolt. He was elected in 1997 and again in 2005. During his terms on the city council, Smith said he led the fight for responsible city government by requiring audits of the town's budget.
    Boyum asked Smith why he was running. Smith laughed, and then said he felt that somebody needed to step up and try to set things straight in Washington. After spending several months trying to get somebody to challenge Barrow, he said he realized he was going to have to do it himself.
    Therefore, he has been very busy lining up support throughout the area, especially with farmers and fellow union members. He said many union members and farming families believe that the Democratic leadership has abandoned them. Smith challenged Barrow's claim of being a “Blue Dog” Democratic, because of his voting for large spending bills.
    Smith said Democratic representatives tend to pander to the more non-productive parts of society. He then said that he can't understand how the Republicans have gotten labeled as working for the rich guys and big business. He said the Republican leaders made a big mistake by not challenging that idea, and it cost the party dearly.
    He also said he doesn't agree with much of what the Republican national leadership has done.
    Smith said the 12th District is the largest in the state. He said government should help people, and one way it can do that is to just get out of everybody's way.
    When he was in Sandersville recently, he found family businesses that had been around through numerous generations that are being forced to close.
    Smith said these are the people that Barrow should be fighting for, and there is a great deal Congress can do to help. He said one way would be to immediately reduce federal payroll taxes, freeing money for people in their homes, and free up money for employers, who could then hire more employees. Taxes and spending are the two biggest problems government has, and it's Congress that approves budgets.
    
    “Mornings unPHILtered” airs live Monday through Friday from 9 a.m. to 10 a.m. on statesboroherald.com and also simulcast on WWNS-AM 1240 on the radio. You also can listen anytime at BoroLive.com on statesboroherald.com
   
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