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Corporate Fraud / Staff Integrity investigation

Ian GROCHOLSKI, VP Business Clarity and Ethics, Founder of Acropolis Associates USA in 1999 is the head of this business unit.
Click here to know more about Ian Grocholski
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Corporate Fraud on the Rise Thanks to Globalisation

Exposure to emerging markets can be a double-edged sword for businesses. While it tends to boost growth and profits, it also increases vulnerability to fraud, a new Kroll report says. The 2013 bribery scandal involving GSK in China is a case in point. Recent surveys have shown that the majority of fraudsters are corporate employees with management responsibilities. This does not have to happen as fraud can be identified, managed and minimized. To prevent or at least minimize fraud, we assist our clients in defining a Corporate Fraud Policy and building an ethical framework:

a)Corporate fraud policy:

most corporations and organizations have codified guidelines on ethical and fraud-related behaviors (codes of conduct, governance codes, anti-fraud policies, etc.) However, issuing a policy by itself has shown many insufficiencies. More often than not, internal controls are insufficient or not properly understood. However, it is leadership and example – rather than rules and regulations – that determine proper ethical behavior in a corporation. A fraud policy can therefore be useful in determining a company’s attitude to fraud. The directors must comply with its provisions and staff should be required to indicate their awareness of how it is applied. fighting-fraud-with-technology1

b)Building an Ethical Framework (BEF):

For those in any doubt about what constitutes appropriate behavior, an anti-fraud policy serves as a useful deterrent. Clear communication will help ensure that employees understand what is and what is not acceptable. Where an organization’s performance is heavily dependent upon third parties, it may be appropriate to share the content of ethics policies with key contractors and suppliers, and seek assurances that they will adopt similar standards. Key aspects to be considered in building an ethical framework are:

  • Understanding the regulatory environment and legal issues;
  • Understanding how ethics and compliance programs can save you money;
  • Implementing a code of conduct;
  • Including a code of conduct in contracts;
  • Organizing ethical training and communications
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Corporate Fraud Alert (CFA):

In China mainland, conducting private investigation is illegal. Investigation must be conducted by Chinese Police. Our company DON’T conduct any private investigation, we are advising organizations to build process and strategy to prevent fraud, and we train their employees to avoid risk. In addition to significant financial losses to investors, corporate fraud has the potential to cause immeasurable damage to investors’ confidence. For these reasons, we help decision makers enhance ethics and compliance programs, develop anti-fraud measures and thereby avoid risks and boost competitive advantage. The key topics to be addressed are:

  • Thoroughly understand all business processes;
  • Identify the most critical risks according to severity and frequency;
  • Implement appropriate controls to fight fraud;
  • Implement change in the corporate culture and encourage openness and reporting;
  • Build and execute a strong compliance program;
  • Identify and deal with risks posed by the IT environment;
  • Review and update procedures based on findings.

Staff & Suppliers Integrity investigation (SSII):

sherlock-holmes-corporate-fraud1 In China mainland, conducting private investigation is illegal. Investigation must be conducted by Chinese Police. Our company DON’T conduct any private investigation, we are advising organizations to build process and strategy to prevent fraud, and we train their employees to avoid risk. In addition to significant financial losses to investors, Corporate Fraud has the potential to cause immeasurable damage to investor confidence. Corporate Fraud investigations involve the following activities in most cases: falsification of financial information, self-dealing by corporate insiders or fraudulent billing from suppliers.