Posted on: 11 February 2022Share
Do you suspect your business is incurring strange losses because of fraud? Most fraud cases go for a while before detection, especially when conducted by insiders who know system loopholes. It takes special skills to uncover the why, how, and who questions around fraudulent transactions. A certified fraud examiner is trained in conducting investigations in alleged fraud according to the law and setting up systems to ensure fraud does not happen using the same or improved methods. What role does this professional play in securing your business?
1. Conducting Forensic Fraud Investigations
A forensic accountant conducts forensic investigations. This is the process of analyzing and reviewing documents, various accounts, and transaction records to determine if a fraudulent transaction has occurred.
It is done by looking at lots of data, which may be missing or incomplete. It helps make conclusions that can be used as evidence in a court of law. It is first conducted off-site through a review of documents and other data, after which an on-site verification is done to confirm or deny findings. The work of a certified fraud examiner includes:
Conducting interviews with personnel involved in the suspect transactions;
Presenting findings before an investigative committee;
Providing recommendations on how to recover losses incurred.
2. Uncovering Suspect Financial Transactions
In cases where a certified fraud examiner finds suspicious transactions, the examiner will follow up with more investigation to determine if a fraud has been committed. This may include identifying if the transaction was made by an employee or by an outsider using stolen information. In addition, the examiner may look into the business's information systems and other records to find out how money was transferred and where it was spent.
3. Setting Up Fraud Prevention and Deterrence Systems
A certified fraud examiner also recommends fraud prevention and deterrence systems to prevent similar fraudulent activities from happening again. This may include a fraud risk assessment and setting up internal controls to prevent further fraud. These prevention mechanisms also help uncover 'known unknowns' where you suspect fraud could be but don't know how it is happening.
4. Recommending Asset Recovery
If a business confirms a fraudulent deal and the people responsible, it becomes easier to institute asset recovery. The certified fraud examiner will recommend the recovery of assets. This may include freezing suspect accounts to prevent further use of the money or getting a court order to seize money from a third party. It can also include negotiations with the culprits to settle matters out of court.
Are you worried fraudulent transactions are bleeding your business? Talk to a certified fraud examiner or a company like Capital Financial Forensics and Accounting to detect, investigate and prevent fraud.'