Fraud Investigations & Forensics


 

In today's troubled times, organizations are beginning to realize how exposed they have been to internal/ external frauds as well as unethical behaviors.  

Our Fraud Investigations and Forensics services provide clients methods and solutions to uncover irregularities and unusual activities within their organizations as well as partners/ vendors.

One important area is our data analysis services and solutions that we provide our clients.  We adopt various data analysis solutions, including data mining and data mapping.  One such example is a data network mapping solution as illustrated below.


Case Study: Review of Corporate Expenses   

Our team members have performed various different controls reviews over administrative expenses, payroll and vendor payments.  An important element in review of Corporate Expenses is the focus on the fraud risk elements and exposures that could undermine the effective safeguarding of cash and cash assets.  Additionally, we have applied data analytical procedures to uncover hard-to-find problems and exposures; where typical controls review may not uncover.  

Below is an outline of an analytical review done for a client across systems.  The objective of a cross system financial controls review is to identify and investigate any relationships that exist across the payroll and accounts payable systems between employees, vendors via addresses, bank accounts, phone numbers as well as system based employee and vendor numbers.  Unusual relationships may indicate the fraud or procedural breaches that could lead to financial losses.  

We obtained an export of appropriate data from each of their payroll and accounts payable systems from the client.  The objective is to analyze data across systems for irregularities such as fraud (e.g. ghost employees), associations between staff, suppliers, and contractors.  This data is processed using NetMap technology according to a set of chosen review scenarios.  A report containing a set of cases for each of these scenarios is returned to the organization for investigation.    

Examples of these Review Scenarios that were tested and identified as part of this review include:

  • Employees being paid more than once in the same pay period from different payroll systems
  • Vendors being paid for same services under different names
  • Ghost employees
  • Associations between employees and employees with access to payroll systems
  • Associations between vendors and employees

 
Above is an illustration of the use of the tools to establish existence of such possible relationships.  Such reviews are difficult, if not impossible without the right tools.  This leaves behind process and control gaps that could be, and are often exploited by management, staff, contractors, and suppliers.

Clients have and can clearly obtain significant value through the use of these technology solutions to uncover such exploits, including:

  • Gaining better assurances that everything technologically possible has been done to protect stakeholder interests.
  • Allowing cross system examination for irregularities that would otherwise be prohibitively expensive and difficult to achieve. 
  • Improving efficiency of investigation process as NetMap technology helps remove many of the false positives normally present in audit projects.


Please see our brochure for more information about the use of NetMap Analytics solutions.  

Feel free to contact our consultants at Info@globalclientconsulting.com for more information or to schedule a meeting for a discussion.