To truly understand and quantify a disputed amount we go beyond examining the detail to question the underlying assumptions and identify the relevant facts.
Let’s look at each of the 4 key steps in any investigation:
The initial stages of the investigation are the most important. There are so many ways that people commit fraud and new types of frauds are being committed every day. Determining what category of fraud has occurred will ensure that you can find the right contacts to help you along the way.
Creating a plan is an important and often overlooked part of the fraud investigation. It takes time, but it keeps investigations Read more
You might have a clean audit opinion but material weakness in your internal control function… It’s better to check it out.
The opinion of a company’s auditors that its financial statements are fairly presented in accordance with generally accepted accounting principles.
Internal control is a process put in place by a company’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives.
When an auditor issues a clean opinion on the company’s financial statements, this is a representation to the public that the auditor has followed applicable auditing and associated professional standards to allow the auditor to conclude with reasonable assurance that the financial statements are fairly presented in line with Financial Reporting Standards in all material respects.
However, a clean audit opinion is not a guarantee of error-free financial statements, it is a conclusion by an auditor, using procedures and professional judgment that are reasonable, that the financial statements are Read more
As a fraud examiner, we consider the Fraud Triangle:-
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