Fraud Examination

When Choosing Among Fraud Examination Firms

April 14, 2020 Comments Off on When Choosing Among Fraud Examination Firms

A forensic accountant knows about keeping the financial transactions up to date and look at the books simultaneously that have taken place and are to help and determine if the money has been hidden or if any fabricated statements have been made. You need to be informed that the fraud examination firm of your choice has the knowledge about the techniques and methods in forensic audit in this case. You’ll require a certified fraud examiner in the United Arab Emirates that is knowledgeable of accounting fraud and corporate fraud, and that is JAXA Chartered Accountants.

Forensic accounting in Dubai has become uncontrolled, and hence, it is an important thing when it comes to anyone’s company or business. There are many situations in which the forensic audit may become necessary. When you conduct fraud examination before purchasing a business, you might be vigilant and look into the company’s books for signs of fraud to guarantee you do not unintentionally buy or overbuy a problematic company.

A forensic audit in the UAE can assist you to get to the base of what is appearing concerning accounting fraud and corporate fraud when there is a doubt that your employees have been embezzling funds or that an accounting department has been less honest in reporting profits and losses.

Why Conduct a Fraud Examination?

A properly executed fraud examination can address several organizational objectives, and there are many reasons why organizations choose to conduct fraud examinations:

  • Stopping Fraud
  • Identifying improper conduct
  • Identifying the individuals responsible for improper conduct
  • Ascertaining the extent of potential liabilities or losses that might exist
  • Sending a note throughout the organization that fraud will not be tolerated
  • Stopping future losses
  • Helping facilitate the recovery of damages
  • Strengthening internal control weakness
  • Mitigating other potential consequences

Fraud Examination Methodology

To resolve signs and allegations of fraud from inception to disposition, fraud examination is conducted and is a methodology. A fraud examination might be demanded by law in addition to some instances. It is a form which establishes a legal and a uniform process for resolving signs and allegations of fraud on a timely basis. It provides a procedure that fraud examinations should move in a linear order which is from the general to the specific by gradually focusing on the perpetrator through an analysis of evidence.

Fraud examinations seek to obtain fats and evidence that helps to establish what has happened, identify the accountable party, and provide recommendations where applicable. These things involve efforts to resolve signs or allegations of fraud when the full facts are unknown or unclear.

Use the Fraud Theory Approach

Fraud examiners should cohere to the fraud theory while conducting fraud examinations. The fraud theory approach is designed as an investigating tool to help fraud examiners direct examinations and organize based on the information available at the time.

When conducting investigations into declarations or signs of fraud, the fraud theory approach provides that the fraud examiner should make a speculation of what might have occurred based on the known facts. He should test it through the addition of new information once the fraud examiner has created an explanation to determine whether the hypothesis is provable. The fraud examiner should continually revise and test his theory based on the known facts if after testing a suggestion if he discovers that it is not testable.

The appropriate course of action should be planned by the fraud examiners team when fraud is suspected. Management should investigate if an allegation of fraud-related misconduct arises. There are other courses of action which you might take. For that, management should identify a list of factors to help decide the course of action that will be used to make a decision. The response team shall be supported by identifying such factors to determine whether to escalate an incident into an investigation.

We can put in this way; the fraud approach involves the following steps:

  • Testing available data
  • Creating a hypothesis
  • Testing the hypothesis
  • Refining and amending the hypothesis

Fraud examiners should begin a fraud examination only when there are circumstances that suggest fraud has occurred, is appearing and/or will happen, and they should not investigate beyond the available prediction. The fraud examiner should reevaluate a forecast if he is unable to articulate a factual basis.

Who Can Help You?

A professional accountant would be needed who understands and specializes in how to handle all types of intricate work which is related to your forensic audit. Your accountant shall do all the complicated tasks and processes from tracing how money is relocated to finding loopholes and misstatements in the financial documents. JAXA Chartered Accountants is a certified fraud investigator and fraud examine, and we are experienced in conducting forensic audits for clients. Contact us today!