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Forensic Audits & Investigations

Reasons to Conduct a Forensic Audit

  • 25 / Sept 2019

Forensic audit investigations can expose or verify fraudulent activities. Usually, a forensic audit is chosen, instead of a regular audit, if there's a chance that the evidence collected would be used in court, a disciplinary proceeding or for some, suspect insurance claims. Typically instances that could necessitate a forensic audit include:

Corruption or Fraud

In a forensic audit, our auditor would be on the lookout for

  • Conflicts of Interest – A fraudster uses his or her influence and inside information to gain an unfair advantage for themselves, proxies, friends or family.
    This usually involves insider trading or what we commonly refer to as less than arm’s length transactions. The primary areas include inflated invoices or insurance claims, fictitious payables or payables to related parties; fictitious vendors, fictitious receivables etc

  • Bribery and Corruption – Employees deriving benefit from vendors in the form of cash, gifts or any form of gratuity.

Asset Misappropriation

Misappropriating cash (skimming from the till), submitting fictitious invoices, making payments to non-existent suppliers or employees (ghost employees), misuse of assets (like company equipment), and theft to the company inventory.


Financial Statement Fraud

Contrary to popular perception there are only two motives for Financial Statement Fraud (Cooking the Books). These are to make the company look better on paper and cover up the embezzlement of company assets/funds.
Likewise, there are only two warning signs or ‘red flags’ for Financial Statement Fraud. These are situational pressure and opportunity.

A manager or executive inflating company performance usually does this for recognition and to reach a performance bonus. This also occurs when an individual or individuals want to obtain favourable loans or to overvalue a company in the event of a sale.

Embezzlement of assets or company funds usually manifests in increases to cost of goods and problems with liquidity and discrepancies to inventory, fictitious payables and receivables.


Fraud Risk Assessment

If you are concerned your company is exposed to potential theft or fraud our experts can assist in identifying your level of risk and strategies to minimise that risk in the following areas:

  • Cash theft
  • Theft to inventory
  • Fictitious payables
  • Receivables fraud
  • Payroll fraud (Ghost employees, fictitious overtime and fictitious expense claims)
  • Purchasing

Industry Leader

If you are concerned your company is exposed to potential theft or fraud our experts can assist in identifying your level of risk and strategies to minimise that risk in the following areas:

Whether a small, medium or large enterprise Stadler Forensics are leaders in their field through their principal forensic expert.

Some Corporate and Government clients have included, SASOL Limited, Optimum Coal, Highveld Steel, Tasima, Department of Trade and Industry (CIPC), State Information Technology Agency (SITA), South African Post Office, TELKOM and a host of others.

Private clients include individuals at the highest levels of private enterprise SOE’s and Government.

Our principal expert has trained investigators from the Malaysian Securities Commission, Power Holding Company of Nigeria, Central Bank of Nigeria, Central Bank of Kenya, South African Revenue Service, Zimbabwe Revenue Authority, Zambia Power, ArcelorMittal and many other companies, Banks and State-Owned Enterprises in South Africa and across Africa.

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