Our firm was engaged by a law firm to assist their client in the investigation of an alleged employee fraud committed by a senior executive of a company, and to determine the quantum of damages resulting from the alleged fraud.
Our role was to identify the payments made to fictitious suppliers and establish that the company did not receive any products and / or services from said suppliers. We conducted interviews with key management personnel of the company responsible for operations and supplier agreements to gain an understanding of the supplier relationships in place as well as the internal controls surrounding the authorization and approval over the supplier/procurement payment cycle. We reviewed the transactions identified by the company as being potentially fictitious, along with the associated cancelled checks, made during the period in question. We also examined other similar transactions to ensure there were no additional fraudulent transactions.
Our review resulted in the identification of numerous fraudulent transactions that were used to substantiate a claim against the senior executive and to recover the misappropriated funds.