Fraud and corruption risk mitigation and investigation
The risk of fraud and corruption is real in every business. Even apparently sophisticated companies can be victim to simple tricks and deception that can leach millions over time.
In just one of our investigations, we found the CEO, CFO and managers of a small business had defrauded the company of more than $10 million over three years. The business couldn’t survive the loss. It collapsed, leaving employees without jobs and contractors owed hundreds of thousands of dollars.
And while this is an extreme example, this is a problem that affects every company.
The Association of Certified Fraud Examiners estimates that, globally, every business loses five per cent of its annual revenue to fraud. They found that smaller businesses lose the most because they don’t have fraud controls. What controls they do have might cover only junior staff, but the association found that executives and managers cause the greatest losses.
Even small businesses can lose hundreds of thousands of dollars to a long- running scam run by a staff member who has been trusted like family.
Reducing your risks from fraud and corruption
In large and small businesses, the base ingredients of most fraud and corruption are the same. There is an opportunity to commit the fraud or succumb to corruption, often because too much trust is placed in too few people with too little in the way of procedures. The fraudster or corrupt employee is sometimes the only one who even knows how the system works, which makes checks impossible.
These facts explain why the foundation of fraud and corruption mitigation is:
- Understanding where your risks lie
- Documenting your systems
- Implementing appropriate policies
- Mandatory checks and cross-references — remember that trustworthy staff welcome a rigorous approach because it protects them
Fraud Detection
Our forensic accountants can comb your accounts for irregularities. We are also trained, skilled and experienced in interviewing staff to detect deception and criminal activity.Scaleable Approach
Every business deserves peace of mind that its profits are protected from fraud and corruption. That’s why we have configured our operations to be accessible to everyone. If you’re a business owner who wants advice on preventing fraud, we can identify your areas of risk and recommend ways to eliminate that risk. If you’re a board of directors suspecting fraud, we have experience of discreetly running complex internal investigations, including interviewing staff and running a forensic audit of the accounts.Our Services
Fraud risk assessment
Fraud control frameworks
Developing or reviewing codes of conduct and related policies
Regulatory compliance and maturity assessments
Corruption risk assessment
Corruption control framework
Cultural assessment and survey
Self-assessment questionnaires
Experience
As part of the independent investigation into NSW water management and compliance headed by Ken Matthews OA and tabled in the NSW parliament, we investigated allegations of corruption and maladministration and assessed whether policies, procedures and actions were appropriate. We also undertook a regulatory maturity assessment. We saved a company $3 million a year after proving the fraudulent misappropriation of approximately $15 million by a CEO, CFO and external accountant working together. Our investigations uncovered a complex web of company structures, phoenix activity, money laundering, and invoice and other fraud. Six senior staff were dismissed and policies were improved as a result.Contact us for fraud investigation or risk mitigation strategies
For a confidential conversation about your risk management or investigation into possible fraud or corruption