Financial crime poses a real and substantial threat to the stability of any business. Taking the proper measures to prevent or react quickly to a malfeasance is critical. Fraud and theft involving everything from intellectual property to inventory, from cybercrime to corruption, can be critically expensive.
PricewaterhouseCoopers' Global Economic Crime Survey 2009 found that the three most common types of economic crimes experienced in the last 12 months were asset misappropriation, accounting fraud and bribery and corruption.
Types of economic crimes
The survey also shows that two-thirds of those respondents who have experienced economic crime in the last 12 months reported having suffered asset misappropriation. This type of fraud - the most prevalent since we began these surveys 10 years ago - covers a variety of misdemeanours and while it is the hardest to prevent, it is arguably the easiest to detect. However, our 2009 survey shows that accounting fraud has become increasing prevalent. Of those respondents who reported economic crime in the past 12 months, 38% reported experiencing accounting fraud. This form of economic crime has significantly increased since 2007 and this appears to be linked to the economic cycle.
Trends in reported frauds
For organisations that encounter economic crime, fraud, or allegations of financial irregularity, our experienced and knowledgeable teams can manage and minimise the threat of corporate crimes and achieve improved outcomes using the following four front strategies:
- Reduce business disruptions, financial loss, and reputational damage;
- Identify the perpetrators and uncover actionable evidence;
- Trace and retrieve stolen/missing assets as fully as possible; and
- Recommend and/or implement effective remedial action to forestall future incidents.
We combine financial and accounting acumen with investigative skills and industry specific expertise to create a network of experts on an international level. Our global resources include CPAs, forensic accountants and Certified Fraud Examiners, former law enforcement officers, prosecutors, former financial regulators, lawyers, insurance specialists as well as forensics technology and asset recovery specialists.
We provide assistance with:
Forensic analysis
- Review complex accounting systems;
- Untangle complex financial transactions;
- Identify unusual or suspicious transactions;
- Test for fraudulent/misrepresented financial statements;
- Reconstruct damaged accounting records using forensic technology; and
- Test for unauthorised access and modification of client's financial statements.
Fraud enquiries
- Assess bribery and corruption assets;
- Examine alleged misappropriation of corporate assets/funds;
- Secure vital evidence;
- Use forensic technology to query and analyse data sets and user files;
- Conduct fact finding interviews with relevant parties, obtain statements; and
- Prepare an objective report on findings.
Fact finding & process review
- Conduct searches of public records and publicly available databases;
- Identify conditions/control deficiencies that led to identified irregularities/incidents of deception;
- Uncover undisclosed conflicts of interest and improper business relationships;
- Confirm and verify facts;
- Interpret the results and implications for your business; and
- Quantify impact.
Asset tracing
- Identify hidden assets; and
- Assist in determining the ownership of assets.
Remediation
- Provide recommendations and develop cost effective solutions;
- Develop and prepare evidence briefs; and
- Provide expert witness services.
