Banks and financial institutions are attacked and remain at the forefront of economic crime and fraud. A crucial element shall be identified in terms of fraud activities and investigating them. The central theme is to overcome challenges and bring confidence in a fraud investigation that can be presented by the people who are taught and are looking forward to getting skilled.
Fraud investigation, also known as a forensic audit is not a new concept. The demand for fraud examination and prevention services is getting higher because of the recent world crime. Fraud examination is a process of investigating and tracking matters related to fraud, commercial disputes, and financial crimes.
The Process of Fraud Examination in Dubai
There are many reasons due to which a company may choose to conduct a fraud examination in Dubai. 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 others that fraud will not be tolerated
- To facilitate the recovery of loss
- Mitigations for future loss
- Strengthening the internal control of a company
Usually, 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: Initiation of 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 data 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 charges. 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 feel that the worth complaint 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 evidence in the examination process. These documents may include the proposals, CVs, applications, bidding papers, or any other information. Check for the papers if they provide adequate information to shift the case to a law enforcement agency.
Step 4: Starting the External Investigation
The external research will start with the interviews of the witnesses outside the organization. These witnesses will include cooperative people or facilitators. After that, the illicit payments will be proved in front of the authorities. You can get started 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 interview a central topic. 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 following the expectations, get the help of other possible defense, and then again conduct the interview. Repeat the process till confession.
Step 6: Preparation of the 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.
The fraud risk is present in almost every business regardless of shape, complexity, and size and could be accomplished by an employee, a client, a vendor, or even a member of the Board. There can be varied and concealed by complex and sophisticated strategies for fraud scenarios.
When it comes to investigation, companies need certified fraud examiners to scrutinize the fraud by conducting a fraud examination in the UAE. If some suspicious activity is noticed in your company, the action should be quick to prevent the loss of company revenue and reputation and the fraud mainly.
JAXA is an auditing firm in Dubai, UAE listed with free zones and banks. We offer forensic auditing and fraud investigation services to help companies in investigating financial fraud with documentary evidence. We come after the International Financial Reporting Standards (IFRS) and hold ISO 9001-2015 certification and to maintain professionalism in our deliverables that made us one of the top audit firms in Dubai. If you are looking forward to initiating the process of cash flow forecasts, investigation and projection, do contact us – we’d be happy to assist you.