Embezzlement by an Accountant
Information came to light indicating that an accountant in a sales company in Asia may have been embezzling.
We were instructed to determine the extent of the fraud, take action to recover the losses and improve the company’s internal control system in order to prevent similar cases occurring in the future.
On the basis of the ascertained fraud pattern, we carried out a full audit of all the affected processes. This was done with the support of a local auditor who had a good understanding of the legal and cultural situation within the country concerned. In this way, the full scope of the fraud was determined and documented in a manner that could be presented in court.
We used these initial findings as the basis of an interview with the employee in question and confronted him with the proof of his embezzlement. Our decision to opt for a confrontation at this stage was well judged in this case. An agreement was reached whereby the embezzled funds would be returned.
Working with the local management, we were able to eliminate the weaknesses in the internal control system to the point where similar fraudulent activity would no longer be possible.
This project involved both auditing and consulting. The result was that we recovered the embezzled funds for our client and made improvements to the weak areas within the control system that had been highlighted by the case.