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Success Story - Fraud Investigation

Investigating potential fraud and improving preventive controls

Superior internal audit consulting delivering practical benefits and improved controls

A government entity found themselves in need of assistance when allegations of fraud were made. The entity needed an independent organization to investigate the allegations and recommend solutions to close any gaps in internal control. Facing significant time pressure to address the situation, they turned to Aventine Hill Partners for help.

OUR SOLUTION

Aventine Hill Partners, through our Risk & Compliance services, assigned two internal controls consultants with oversight from one of our CAE Advisors to perform the following work on the aggressive timeline required by the entity:

  • Assess the current policies, processes, and controls for the impacted area
  • Investigate the specific facts related to the alleged fraud, following appropriate standards of professional practice and confidentiality to protect all parties
  • Provide an opinion on whether fraud had occurred and the potential extent
  • Recommend improvements to the internal controls to mitigate the risk of fraud in the future.

Thorough documentation did not exist in some critical areas so the team had to develop business process flowcharts from scratch based on interviews of employees and direct observations of procedures. An audit plan was developed and executed, ensuring the data and facts collected were sufficient in quantity and reliability to accurately assess the facts of the situation. The highly detailed audits evaluated manual, automated, and web-based processes and transactions, triangulating data throughout the process to assess potential loopholes that could be exploited by a potential perpetrator. Practical recommendations for improved controls were defined to allow the entity to act promptly at the conclusion of the investigation.

Results

With help and leadership from Aventine Hill Partners, this government entity was able to successfully bring this investigation to closure, meet its urgent deadlines, and implement recommendations to improve internal controls in the prevention of fraud. Learn more about our Internal Audit Advisory and Support capabilities.

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