Corporate asset misappropriation remains a major problem. 86 percent of corporate fraud stems from revenue being accidentally lost or stolen by employees.
Such scams can also damage a company’s reputation, causing customers to lose trust. If companies don’t have the right know-how, tools, and assistance from Forensic Accounting Services in Delhi to detect fraud promptly, the consequences can be far-reaching.
Uncover the scam
Weak internal controls, a lack of awareness among accounting staff, and the resulting insecurity among employees are just some of the reasons why it is sometimes so easy to cheat the company.
It is also often outdated methods that employees use to process invoices: manual entry of invoice data in Excel spreadsheets is still common practice in many companies. Forensic Accounting Services In India help to uncover many of these scams.
Being able to reduce and optimize costs can be a huge competitive advantage for a company. To do this without major structural changes, steps can be taken to prevent internal fraud.
To begin with, your company needs a regulatory framework that all employees must apply. This regulatory framework includes, for example, a code of ethics, a code of conduct, etc. Having these documents will be a good basis for minimizing internal fraud, but make sure they are available to all employees and format them accordingly.
Forensic accounting is also a very useful tool, it allows the company to identify possible frauds that have been underestimated, but also risk factors and situations, points for improvement, etc.
Fraud is considered a holistic phenomenon, which is formed by a complex interaction of economic, psychological, and social circumstances. Fraud can be divided into several types, based on the distribution of the subject from which this fact comes:
- Embezzlement by an employee;
- Fraud did by business leaders or managers;
- Scams related to investments
- Fraud related to suppliers;
- Fraud on the part of the customer or client.
Despite such species diversity, most often an enterprise is harmed due to dishonest actions on the part of employees of the same company. For this reason, Forensic Accounting Services in India is needed.
What services does forensic accounting include?
Corporate intelligence:
- Due diligence of legal entities and individuals;
- Information support of transactions and negotiations;
- Information support for the resolution of litigation;
- Search and identification of assets;
- Risk analysis when entering new markets.
Internal Incident Investigation:
- Fraud of contractors, employees, and other persons;
- Internal corruption and violation of ethics;
- Insider information trading and market manipulation;
- Money laundering and terrorist financing;
- Unauthorized use of confidential information;
- Withdrawal of funds and assets.
Corruption and fraud can flourish in both large enterprises and small companies. At the same time, business owners often do not even know about the leakage of funds. Forensic specialists help determine whether such a danger exists.
However, many entrepreneurs are not even aware of the leakage of funds. Usually, it is well disguised. Nevertheless, some indicators allow you to identify fraud in the company. And forensic specialists help to cope with it.