Why do Fraudsters do it?

As a fraud examiner, we consider the Fraud Triangle:-

  • Pressure
  • Opportunity
  • Rationalisation

In 2008 a Harvard Business School professor, Eugene Soltes examined this question and in 2016 published a book on the subject.

He found that middle management and employees further down the corporate ladder might commit fraud because they found a ready source of cash to ease their economic problems.

What puzzled Soltes is why well-paid business people committed fraud and he interviewed Read more

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    Posted on November 16, 2017 by Paul Leonard

    Proper Books of Account

    The requirement that a company keep proper books of account is contained in section 282 of the Companies Act 2014. 

    Section 282 provides that every company shall cause to be kept adequate accounting records, whether in the form of documents or otherwise that –

    • correctly record and explain the transactions of the company,
    • enable, at any time, the assets, liabilities, financial position and profit and loss of the company to be determined with reasonable accuracy,
    • enable the directors to ensure that any financial statements of the company required to be prepared under section 290 or 293, and any directors report required to be prepared under section 325, comply with the requirements of the Companies Act, and where applicable, Article 4 of the IAS Regulation: and
    • enable those financial statements of the company so prepared to be audited.

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      Posted on November 15, 2017 by Paul Leonard

      Forensic Techniques To Detecting Procurement Fraud

      The starting point for such an investigation is gathering all the payments to suppliers preferably over a number of years.  We then sort this information to enable us to review trends in the payment history.  Once this data is gathered, sorted and reviewed we carry out the following procedures.

      1. Background checks on the suppliers

      • Internet presence – is their website professionally designed and does it advertise the goods and services that were supplied
      • Is the supplier reputable and who are the suppliers’ other clients
      • Is the supplier company a long-standing registered company or recently incorporated
      • Who are the Directors/shareholders of the supplier and is there any links to key staff in the business we are examining
      • What is the address used by the supplier and carry out checks on the address for multiple users

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        Posted on November 14, 2017 by Paul Leonard

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