Fraud Examiner Provides Insight into Life as a Small Business Owner

ACFE Member Profile




For Timothy Hediger, CFE, CIA, CCSA, owner and CEO of Polaris Risk Services, LLC, the benefits of owning his own business are numerous: a casual dress code. A flexible schedule. No commute, timesheets or managers. "It is a struggle because, as an independent professional, you must be available for your clients," Hediger said. "But with that comes great flexibility in my schedule for my family."


How did you know that making the move to self-employment was the right one?


When I got my first major client! As other independent professionals, professional service owners and partners at CPA firms can attest -- your hopes, dreams and hard work are realized when you negotiate an effective contract with a customer.


What is the most important thing you learned about owning your own business within the first year of striking out on your own?


Patience is the most important trait I needed while marketing and maintaining my client base. I cannot emphasize this enough to readers because professional services are inherently a trust business -- even more so with fraud, forensics, internal controls and continuous monitoring. Think about it for a moment; you are working with a client that is under great distress and turns to you to solve it. Remembering patience when you gain and maintain a customer is vital.


How did you build up your client base?


My major client took many years of networking before I got the opportunity. I feel that being friendly and helpful earns business.


What advantage does the CFE credential give you and your business? What specific advantage has it given you in your career?


While working for the California State Board of Equalization, I heard about the ACFE and the CFE credential. I was immediately intrigued in solving some of businesses’ most challenging problems. Since early 2003, I wanted to be a part of the ACFE and now have the opportunity to share experiences with the fraud community. I am proud to be a member of this great organization and broadcast it widely.


My client base views the CFE as a needed component to a portfolio of experience. They are looking for a professional who can take an audit or investigation to its logical conclusion, without prejudice or presupposing a result. Additionally, they are looking for an individual who is creative on multiple levels -- most notably when there are significant incomplete data points. Although using the word "creativity" is frowned upon in the fraud and internal control fields, I believe it is a vital component to your professional growth and problem-solving abilities.


What opportunities are out there for CFEs in today's economy?


I perceive a great demand for fraud and forensics professionals because of our unique skill set. We have one foot in law enforcement and one foot in accounting/IT. I think of our law and accounting knowledge as being a bridge builder for our clients. With the arrival of instant communications without filters, the public is more aware and less tolerant of corporate malfeasance. It is my opinion that these facts will manifest in additional laws, rules and regulations. In fact, we have already seen this through the U.S. Dodd-Frank Act, changes to the U.S. False Claims Act, provisions in TARP, the UK Fraud Act of 2006 and the UK Bribery Act/U.S. Foreign Corrupt Practices Act. There are even areas to be of service to smaller clients, like implementing cash controls or implementing a fraud risk assessment. Our profession can be at the forefront of making positive changes to current corporate culture.


How do you manage your work/life balance?


The biggest thrill is giving my two-year-old a tub every night. She even knows when I get an email on my Smartphone because she yells, "DING!" Seriously though, it is a struggle because, as an independent professional, you must be available for your client. With that comes great flexibility in my schedule for my family and my daughter.


What advice would you give to someone just starting their career as a CFE?


I have two pieces of advice for new fraud examiners. First, if you are starting out as a fraud professional, independent or as an employee, certified or not, college student or career changer, continuous learning is essential. The learning does not have to be formal, but must be perpetual. Second, a mastery of the English language, in all forms, is critical to success in this business. According to an AICPA white paper entitled, "Characteristics and Skills of the Forensic Accountant," the No. 2 core skill noted is "Effective Written Communicator." Conversely, the No.2 reason why forensic accountants are ineffective is, "Ineffective Oral Communication." A fraud examiner has to combine written, speaking and hearing skills -- it is an essential skill set.



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