There are many reasons due to which a company may choose to conduct fraud examination. The general objectives of any fraud examination in a company may include the following points:
- Identifying the improper conduct
- Identifying the person who is responsible
- Stopping the fraud
- Sending a message to other that fraud will not be tolerated
- To facilitate the recovery of loss
- Mitigations for future loss
- Strengthening the internal control of a company
Normally the fraud examination is conducted on the administrative level, however, the company can also expand this case to the law enforcement agency. The process of the fraud examination includes the following steps:
Step 1: Initiate the case:
If you find a complaint or a report of a fraud, start with the collection of related information. The more information you will gather, the more clarity you will achieve. Look for the present information and the indicators or areas from where you can gather additional information.
Step 2: Evaluation of the allegations:
After the report has been filed, evaluate the nature of the allegations. Do you think that they are strong enough to start an investigation? Because the investigation process can take a lot of time and effort. If you think that the complaint worth investigation, try to evaluate the accuracy of it first on a smaller level.
Step 3: Internal stage of examination:
Before getting the help of any fraud examiner, complete the initial investigation process inside the company. Look for the documents which can work as an evidence in the examination process. These documents may include the proposals, CVs, applications, biding documents or any other information. Check for the documents if they provide an adequate information to shift the case to a law enforcement agency.
Step 4: Start the external investigation:
The external investigation will start with the interviews of the witnesses outside the organization. These witnesses will include cooperative people or the facilitators. After that, the illicit payments will be proved in front of the authorities. You can start from the very beginning of the payment process and the point where the fraud occurs. You can also get the help of any outside person or a company as a witness who is associated with the case.
Step 5: Interview of the primary subject:
In a fraud case, you need to conduct the interview of a primary subject. It can be anyone. Try to ask questions in which the other person confess about the fraud. Ask for the relevant documents that will contain all the details. Record the conducted interview. If the results are not in accordance with the expectations, get the help of other possible defense and then again conduct the interview. Repeat the process till confession.
Step 6: Preparation of final report:
After the completion of the examination process, the next step is to prepare a report for all the offenses recorded. This report will be a final document organized according to the elements of proof.