Who initiates a Fraud Investigation Audit?
Initiating a Fraud Investigation Audit
Emirates Chartered Accountants Group - Professionals in Fraud Investigation Audit Services in Dubai, UAE.
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Pradeep Sai | Managing Partner
Mob: +971 556530001
Email: sai@emiratesca.com
Why is Fraud Investigation Audit required?
Fraud Investigation Audit is investigating a fraud which is very much required to identify the exact depth of committed fraud. The areas where the same has impacted. It is also very much necessary to identify the loop-holes or gaps due to which such Fraud took place. Fraud Investigation Audit would help a company in assessing the actual loss incurred to a company in terms of financial & non-financial aspects. A detailed Fraud investigation report along with evidence could help in a legal proceeding (if any) carried out against it.
Who initiates a Fraud Investigation?
Generally, Fraud Investigation is initiated by the Management of the Company, Shareholders, Board, Trustees who order for the Fraud Investigation. When any of the mentioned Parties come across any doubt or instances of fraud, Investigation is ordered or initiated.
What are the different types of Fraud?
Majorly fraud can be classified as Civil or Criminal fraud. However, there are multiple subtypes of fraud that can be committed depending on the nature and type of business. Below mentioned are some of the examples:
Cash theft: Stealing cash from the counter by destroying invoices or Pocketing cash by showing cash transactions as credit.
Forging Cheque: Forging a signature on the cheque and self-withdrawing money
Manipulations: Manipulation with supporting documents and accounting fraud
Stealing Inventory: Pilferage of stock/inventory by employees
Asset theft or misappropriation: Using the company’s assets for personal benefits or for employee’s personal business
Reimbursement fraud: Claiming same expense one than once. Attaching forged supporting documents
Payment frauds: Salesman showing fake or dummy sales for more commission and reversing back the same in next months.
Bribery: Suppliers & vendors bribing employees to buy only their products
IT Fraud: IT and Internet fraud for personal benefits
Fake Suppliers: Creating fake suppliers in the books and making payments for goods/ services not availed.
Payment to Dummy Employees: By preparing dummy timesheet. This can happen with sub-contracting services where manpower supply is outsourced.
Fake Claims: Employees may charge personal purchases in the company name and record in the company’s books of accounts.
Payment frauds: Salesman showing fake or dummy sales for more commission and reversing back the same in next months.
Charities fraud: Showing dummy charities and embezzling the company funds.
Fake jobs and recruiter
Important Data theft: Stealing Contact details or confidential details of the customers and vendors to either sell or for self-use.
Steps while conducting a
Fraud Investigation Audit
Once the case of fraud is noticed, the proposed steps in Fraud Investigation Audit may involve:
- Assessing the case to identify the type of fraud committed, parties involved
- Setting up an Investigative team
- Set the timeline and strategy
- Interview employees or members of organization/ company/ business or external parties as well if necessary
- Gather evidence and supporting information for detailed checking & due diligence
- Co-relate or interlink the responses in the interview with the collected evidence
- Identify the gaps or differences
- Write the Fraud Report
Our role in Fraud Investigation Audit
At Emirates Chartered Accountants Group, we have a specialized qualified team to undertake the Fraud Investigation Audit assignments. On understanding the case and situation of fraud we structure the team in a way that the case could be handled very diligently.
