Conducted forensic audit for one of the oldest and largest business groups of Pakistan where the scope comprised of verification of following heads:
- Building – Rs 2.8 billion
- Common Expenses – Rs. 1 billion
Following procedures were performed on the aforementioned heads:
- Connections between series of transactions were identified and reviewed, for any doubtful activity. Where the loss was deliberate, the true beneficiary in those transactions were identified.
- All underlying documents were critically analyzed for fraud or misstatement.
- All transactions were matched in bank statements.
- Cash transactions were validated for existence from vendors and if required their fair value confirmed from other related 3rd
- Transactions that did not have supporting evidence were critically evaluated based on market prices at the time of expense. Further, existence of these transactions were also verified e.g. verified physical asset if the transaction suggested purchase of an asset.
- All transactions were evaluated based on the basis of company’s objective and policy.
- Approvals for all transactions were verified against proper approval processes of the company.
- Approval process of the company were verified against best practices in the industry.
- Interviews were conducted of staff and senior management in order to determine true nature of suspicious transactions.
- Related party transactions were verified and reviewed against group policy.
- Physical verification of assets was performed for all tangible assets under these heads.
- All major contracts were reviewed and verified from vendors.
- Bank reconciliations were verified for open items.
- Related experts were engaged where deemed necessary with the prior approval of the management.