Why Should You Consider an Internal Control Review?

You might have a clean audit opinion but material weakness in your internal control function… It’s better to check it out.

What is a Clean Audit Opinion?

The opinion of a company’s auditors that its financial statements are fairly presented in accordance with generally accepted accounting principles.

What is Internal Control?

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.

Is a Clean Audit Opinion a Guarantee of Error-free Financial Statements?

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

Posted on November 28, 2017 by Lisa Byrne

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

Posted on November 16, 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

Read more

Posted on November 14, 2017 by Paul Leonard

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