×

HOW TO BECOME A CLIENT

1 EMAIL OR CALL US.
2 ARRANGE MEETING.
3 BECOME A CLIENT

If you have any problems, please let us know, by sending an email to info@rmiaccountancy.com. Thank you!

OFFICE HOURS

Mon-Fri 10:00AM - 5:00PM
Saturday by appointment only!

SIGN IN YOUR ACCOUNT TO HAVE ACCESS TO DIFFERENT FEATURES

FORGOT YOUR PASSWORD?

FORGOT YOUR DETAILS?

AAH, WAIT, I REMEMBER NOW!
QUESTIONS? CALL: 0161 9137 958
  • LOGIN
  • SUPPORT

RMI Accountancy

RMI Accountancy

City firm of financial and forensic accountants

T 0161 4137 958
Email: info@rmiaccountancy.com

RMI Accountancy
Blue Tower, Media City, Manchester, M50 2ST

Open in Google Maps
  • HOME PAGE
  • ABOUT US
    • ABOUT US
    • Our Team
    • Our Testimonials and Reviews
  • SERVICES
    • FORENSIC ACCOUNTING
      • Forensic Accounting
      • Forensic Investigation
      • Fraud Risk Assessment
      • Fraud Prevention Plan
      • Forensic Audit
      • Forensic Services Guarantee
      • Forensic Accounting – Posts
    • Accounting Solution
      • Accounting
      • Contractor and Freelancers
      • Tax Planning
      • Payroll
      • Business Growth Analysis
      • Book-Keeping
      • Company Formation
      • Guidance for businesses
    • Media & Celebrities
      • Accountancy for TV, Film, Sports & Media
      • Trusted and Reliable Accountancy Services for Media Clients
      • Wealth Management
      • Property Tax Planning
    • Specialist Accounting Solutions
      • Dental Practices
      • Optical and Pharmaceutical Practices
      • General Medical Practices
  • CASE STUDIES
    • A Success Story
    • Case Studies
    • The Path to Success – Becoming a Client
    • Tax updatesTax updates
    • BLOG & STORIES
  • LIBRARY
  • CONTACT
FREECONSULTATION
  • Home
  • Forensic Audit
February 8, 2023

Forensic Audit

Forensic Audit

Association of Certified Fraud Examiner

Certified Fraud Examiner

Whistleblowing and the Symptoms of Fraud

There are often cases where auditors come under fire for not being able to uncover more instances of fraud occurring in companies, but this can sometimes have little to do with their efficacy or their attention to detail. It can be that they are simply not in the best place to identify any possible symptoms that fraud is indeed, taking place.

When criminal acts of fraud take place, they can are made up of 3 distinct phases.

  1. The theft itself – the actual act of stealing money or resources
  2. Concealment – the attempts by the perpetrator to disguise what they have done. This can be physical concealment or by doctoring financial records or inventories
  3. The conversion – this is the selling on or ‘fencing’ of stolen goods and then spending the cash gained from this action

The good news is, that fraud can be detected at each of these 3 stages.

  1. The Theft

When an employee steals stock, cash or other assets, this can be witnessed by any other employee in the vicinity.

  1. Concealment

When financial records are altered or stock is intentionally miscounted to cover up fraud, this can be quickly identified through analysis.

  1. Conversion

Lastly, when the offender spends the money they have stolen on something for themselves, there can be a visible indicator that their lifestyle has improved, for unknown reasons. Of course, anyone can buy a new car or something else for legitimate reasons, but it is undoubtedly a potential symptom of fraud.

Co-workers in the best position

Whilst auditors and forensic accountants are extremely skilled in what they do, they are still not in the best position to detect ongoing fraud, as it tends to cease immediately when they arrive to conduct their investigations. The ones in the best position to notice are the work colleagues of the perpetrators at their place of work, prior to any public indication that there is any suspicion of wrongdoing.

Co-workers will have intimate knowledge of the day to day activity of the company and some insight into the actions of others that they work with. Subtle changes that can occur when concealment is taking place is most likely to be noticed by internal accountants and the people they work next to.

Tips and Complaints

Whilst co-workers are in the best place to spot any fraudulent activity, when they attempt to whistleblow to highlight potential wrongdoing, their claims are initially treated with caution and as symptoms, rather than evidence of criminal activity. Claims can be made with malice or other motives, so the situation must be treated with care.

There are also reasons why someone with suspicions might be hesitant to come forward:

  • They’re not completely sure and don’t want to alienate colleagues
  • They fear reprisals from the perpetrators or feel intimidated by them
  • They might suspect their superiors to be the ones responsible and don’t know who to turn to
  • Some companies don’t make it simple to come forward

Employees of any company should be aware that in accordance with the Public Interest and Disclosure Act of 1988, there is a legal requirement for those coming forward to have at least a reasonable belief that wrongdoing is occurring. It is also the company’s responsibility to make their staff aware of company policy on whistleblowing.

At RMI Accountants in Media City, Manchester we provide a range of accountancy services for media clients and to the wider public and we have extensive experience in methods relating to fraud assessment, detection and prevention.

If anything discussed here has affected you or your organisation and you would like some advice on saving money by implementing a fraud prevention program, please call us on 0161 4137958 or visit our website www.rmiaccountancy.com for more information.

One of our friendly experts is always on hand to answer any questions you might have.

Recent Posts

  • HMRC raises late payment interest from 21 February

    HMRC will raise interest rates on tax debt to 6...
  • Former chancellor owes HMRC £3.7m in unpaid tax

    Nadhim Zahawi has agreed to pay millions of pou...
  • Inflation falls slightly to 10.5%

    The rate of inflation was down fractionally to ...
  • VAT penalties change from 1 January

    HMRC’s new penalty regime for late filing and l...
  • Rules on flexible working set for overhaul

    Millions of workers will be able to request fle...

Recent Comments

    Archives

    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • December 2018
    • November 2018
    • January 2018
    • November 2015
    • August 2015

    Categories

    • Accounts
    • Annual Investment Allowance
    • Bounce back loan
    • Brexit
    • Budget
    • Budget 2021
    • Business grants
    • Business Rates
    • Business Support Finder Tool
    • Capital gains tax
    • Carer's Leave
    • Corporation Tax
    • Covid booster programme
    • Covid Restrictions
    • Eat Out to Help Out
    • Employment
    • Filing Deadlines
    • Flexible working
    • Fuel Rates
    • Furlough scheme
    • HMRC
    • Home Working Tax Relief
    • Inflation
    • Inheritance Tax
    • Interest Rates
    • IR35
    • Job Retention Scheme
    • Job Support Scheme
    • Kickstart Scheme
    • Making Tax Digital
    • Mobile
    • National Insurance
    • National Wage Rates
    • Networking
    • PAYE
    • Pension
    • Recovery Loan Scheme
    • Research & Development
    • Self Assessment
    • self employed scheme
    • Stamp Duty
    • Statutory Sick Pay (SSP)
    • Tax Credits
    • Tax Fraud
    • Tax Investigation
    • Tax Relief
    • Tax return
    • Technology
    • Uncategorized
    • VAT
    • Virtual Accountancy Services
    • Working Tax Credit

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Featured Posts

    • HMRC raises late payment interest from 21 February

      0 comments
    • Former chancellor owes HMRC £3.7m in unpaid tax

      0 comments
    • Inflation falls slightly to 10.5%

      0 comments
    • VAT penalties change from 1 January

      0 comments
    • Rules on flexible working set for overhaul

      0 comments

    GET A FREE QUOTE

    Please fill this for and we'll get back to you as soon as possible!

    FOOTER MENU

    • About us
    • Our Team
    • Forensic Accounting
    • Tax Planning
    • TV, Film, Sport and Media
    • Wealth Management
    • Case Studies
    • Advisory
    • Contact Us

    NEWSLETTER SIGNUP

    By subscribing to our mailing list you will always be update with the latest news from us.

    We never spam!

    GET IN TOUCH

    T (0161) 4137958
    Email: info@rmiaccountancy.com

    RMI Accountancy
    Blue Tower, Media City, Manchester, M50 2ST

    Open in Google Maps

    © 2019-2020. All rights reserved. Web Design - by Web & Print Media

    TOP
    Skip to toolbar
    • About WordPress
      • WordPress.org
      • Documentation
      • Support
      • Feedback
    • Log In