FRAUD INVESTIGATION AUDIT SERVICES
Fraud Investigation Audit Services in Dubai, UAE
FRAUD INVESTIGATION AUDIT SERVICES
Fraud Investigation Audit Services in Dubai, UAE
Fraud Investigation Audits Services in Dubai, UAE
“Fraud” going by the dictionary definition it is wrongful or criminal cheating intended to result in some gain. Fraud is always well planned and hence Fraud Investigation is a difficult task. Fraud Investigation is a process to identify & determine the scam that is done, by whom it is done and to what extent it has impacted or affected the business as a whole.
What is Fraud?
Fraud is a falsification of records or documents with the intention to deceive others. Fraud is generally against the business at a large or sometimes with a motive of taking revenge against a specific person. Fraud is the biggest risk that any business may face and can have very adverse effects like loss of reputation, financial loss, damage, embarrassment, etc. Fraud is generally committed by as employees, vendors, customers or other persons in relation to them. Such frauds are mainly against the business or the company in order to gain some undue advantage, financial gain, or with an intention to spoil the goodwill and reputation in the market. Fraud Investigations are complex because they are well planned. Hence, it can be identified only with the minute inspection.
Why is Fraud Investigation Audit required?
Fraud Investigation Audit is investigating a fraud in such a way which is legally required to identify the exact depth of committed fraud. The audit areas where the cause has taken place including the associated persons or employees are looked upon. Such cases are not handled like Statutory Audit. Fraud Investigation Audit seeks whole enquiry & backing the root cause in terms of loss to company in terms of financial & non-financial aspects. A detailed Fraud Investigation Audit helps company in recovering the losses and helps in implementing a strong policy-oriented structure.
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. However, some cases are referred to by Law Enforcement Agencies or Statutory Authorities.
What are the different types of Fraud?
Widely frauds are classified into Operational fraud. However as frauds have multiple variants of fraud that also can be committed depending on the nature of work and the department. Below are the different types of fraud:
- Cash Theft: Stealing of money by employees or vendors
- Cash Embezzlement: Cash manipulations by altering records or Pocketing cash by showing cash transactions as credit.
- Manipulation in Accounts: Deliberately changing accounting entries.
- Unauthorized Transactions: Unauthorized payments.
- Misappropriation: Misuse of assets like using company cars, accounts for personal expenditure or business.
- Banking Irregularities: Improper bank reconciliations, Cheque bouncing, forging financial supporting documents.
- Reimbursement Fraud: Claiming fake expenses or inflating fringe benefits.
- Payroll Fraud: Inclusion of fake employees in payroll or misusing leave policies.
- Bribery: Employees or vendors seeking bribes.
- Collusion: Employees/Vendors making a secret agreement for personal benefit.
- Kickbacks: Employees getting gifts, commissions, or incentives from vendors/clients and not disclosing.
- Procurement Fraud: Favoring a specific vendor during procurement. This can happen with sub-contracting activities where manpower supply is also subcontracted to known personnel of the employee.
- Payroll Ghost: Employees may show particular persons at the company and receive cash in the company books of accounts.
- Related Party Transactions: Directors or Senior Management entering into contracts with their own firm in indirect names.
- Data Leak: Stealing Contact details or confidential details of the customers and vendors to an outsider for self-benefit.
Who Initiates a Fraud Investigation Audit?
Initiating a Fraud Investigation Audit
CA Emirates (Formerly Emirates Chartered Accountants Group) – Professionals in Fraud Investigation Audit Services in Dubai, UAE.
Call for Consultation
Pradeep Sasi | Managing Partner
Mobile: +971 55 1030961
Email: Pradeep.Sasi@eca.ae
Why is Fraud Investigation Audit required?
Fraud Investigation Audit is investigating a fraud in such a way which is legally required to identify the exact depth of committed fraud. The audit areas where the cause has taken place including the associated persons or employees are looked upon. Such cases are not handled like Statutory Audit. Fraud Investigation Audit seeks whole enquiry & backing the root cause in terms of loss to company in terms of financial & non-financial aspects. A detailed Fraud Investigation Audit helps company in recovering the losses and helps in implementing a strong policy-oriented structure.
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. However, some cases are referred to by Law Enforcement Agencies or Statutory Authorities.
What are the different types of Fraud?
Widely frauds are classified into Operational fraud. However as frauds have multiple variants of fraud that also can be committed depending on the nature of work and the department. Below are the different types of fraud:
- Cash Theft: Stealing of money by employees or vendors
- Cash Embezzlement: Cash manipulations by altering records or Pocketing cash by showing cash transactions as credit.
- Manipulation in Accounts: Deliberately changing accounting entries.
- Unauthorized Transactions: Unauthorized payments.
- Misappropriation: Misuse of assets like using company cars, accounts for personal expenditure or business.
- Banking Irregularities: Improper bank reconciliations, Cheque bouncing, forging financial supporting documents.
- Reimbursement Fraud: Claiming fake expenses or inflating fringe benefits.
- Payroll Fraud: Inclusion of fake employees in payroll or misusing leave policies.
- Bribery: Employees or vendors seeking bribes.
- Collusion: Employees/Vendors making a secret agreement for personal benefit.
- Kickbacks: Employees getting gifts, commissions, or incentives from vendors/clients and not disclosing.
- Procurement Fraud: Favoring a specific vendor during procurement. This can happen with sub-contracting activities where manpower supply is also subcontracted to known personnel of the employee.
- Payroll Ghost: Employees may show particular persons at the company and receive cash in the company books of accounts.
- Related Party Transactions: Directors or Senior Management entering into contracts with their own firm in indirect names.
- Data Leak: Stealing Contact details or confidential details of the customers and vendors to an outsider for self-benefit.
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 CLA Emirates (formerly 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.
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 SPS UAE (formerly 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.