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In the recent past, there has been a substantial increase in the number of businesses coming into the Middle East from all over the world. With the increase in the number of businesses, there has also been a rise in business fraud. This fraud has the potential to make or break the business. 

This is why the management of companies should take special care to conduct Fraud Investigation Audit Services.

What does one mean by Fraud Investigation Audit Services in Dubai, UAE?

In general, life Fraud can be explained as any activity that is wrongful or deceptive and, in the end, results in any financial or personal gain to a person or entity. In the business world, fraud can be defined as a planned activity that is performed to rob or deprive the other entity of property or money. Such activity can bring devastating results to a business

A business can conduct fraud without the management knowing about it. This can create huge losses due to improper use of resources and can lead to the liquidation of the company. This is why it is required that every business utilizes a Fraud Investigation Audit Service. 

In this service, a Forensic Examiner will examine all the documents and reports of the company and will find if any fraudulent activity is taking place in the business.

Who is a Forensic Accountant or a Fraud Examiner, and what is his Role in Fraud Examination?

A forensic Accountant can also play the role of a Financial Fraud Examiner. This individual uses analytical and accounting skills to investigate the financial health of the company. They will also go through each financial transaction to check if any fraudulent activity has been occurring. There are many ways by which fraud can be conducted. Some of the different ways are mentioned below:

• Telemarketing Fraud
• Securities Fraud
• Money Laundering Fraud
• Embezzlement, and many others.

These Forensic Accountants are required to perform an important role in the business and should have experience of at least one year and need a fluent understanding of all the financial records of the company. They must also be capable of finding any discrepancies in the financial reports of the business so that they can narrow down their search quickly.

What are the different methods to detect fraud in a Business in UAE?

Proper Accounting and Bookkeeping will help a business to prevent such fraudulent activities from happening. Accounting and Bookkeeping will form the first line of defense in such cases. 

However, for other scenarios, there are different methods for detecting if any fraudulent activity is conducted in the company or not. Some of the more frequently used methods of fraud detection are provided below:

1. Brainstorming

This is one of the most common and frequently used methods of detecting fraud in a business. During the initiation of any fraud audit, a brainstorming session is done. In this session, the audit team lists all the ways by which the management can find and tackle fraudulent activities. 

As brainstorming is a first step toward fraud detection, the audit team doesn’t need to state only viable options. Anything that comes to mind should be jotted down as it can help understand which will be the best and viable option.

2. Examination of Journal Entries

All the transactions of the company are recorded as a journal entry. The Fraud Investigator will have to examine all the journal entries of the business to find any discrepancies. 

Any manipulation in the journal entries of the company will mean that there has been some tampering in the business.

3. Historical Transactions of the Company

The earlier transactions of a company can provide a bigger picture regarding the fraud in the company. After analyzing the previous transactions of the company, the audit team can get a sense as to what is the estimated amount that the company usually spends. 

If there is a huge deviation from this amount, then the company can be considered a victim of fraud.

4. Reviewing

Conducting the reviews of the business at specific periods will help the management to catch hold of fraudulent activities in the business. 

Once any such activity is caught, the management can take preventive steps to ensure that such activities do not happen in the future.

What are some important things to remember while conducting a Fraud Examination in UAE?

There is a huge requirement for a professional Financial Fraud Examiner in today’s world, which is constantly increasing. Before availing of the Fraud Examination Audit services, certain things must be kept in mind. These are:

1. The individual or team must have knowledge of the finances and how all the books of accounts are maintained.
2. They should have experience about how companies can manipulate the financial books and should also be inquisitive and search for new ways of finding out inconsistencies in the business.
3. The reviews of the particular auditor or examiner should be checked before availing the fraud investigation services in Dubai.

These are some of the important things that should be considered before availing the services of a Fraud Investigation Auditor. 

For more details on the characteristics that should be looked at before availing of such services, you can refer to our blog titled Things to consider when choosing a Fraud Examination Firm.

JAXA Fraud Investigation Audit services in Dubai, UAE

• Evaluating the suspected financial and operational reports of the organization
• Helping the organization in fraud prevention by conducting an investigative review
• Preparing a fraud investigation report based on investigation reviews
• Recommendation of relative action to prevent fraud in the future

Why JAXA?

JAXA is a financial consultant in Dubai, offering a wide range of services including accounting services, auditing, software consultancy, and management. At JAXA, we help our clients in the analysis of company controls, processes and procedures to identify suspected fraud. We also prepare a detailed fraud investigation report within a few days. We have been providing the best audit & assurance services in Dubai and other areas as well.

For any fraud investigation audit services in Dubai, contact us – we’d be glad to assist.