Antifraud programs

All organizations are subject to fraud risks. Large frauds have led to the downfall of entire organizations, massive investment losses, significant legal costs and erosion of confidence in capital markets.

Reactions to recent corporate scandals have led the public and stakeholders to expect management of organizations have responsibility for dealing with fraud risk.

Particularly, they are expected to provide effective answers to the following questions :

• How is the organization responding to heightened regulations, as well as public and stakeholder scrutiny? 
• What form of fraud risk management program the organization has put in place?
• How does management identify fraud risks?
• What is management doing to better prevent fraud, or at least detect it sooner?
• What are the processes in place to investigate fraud and take corrective actions? 

• Global fraud risk assessment
  
  This first step consists of a methodological analysis of existing controls and procedures. Our goal is to evaluate risk factors and consider possible fraud schemes. This work must be carried out through workshop sessions with operational management teams.
  
  
• Conception and validation of effective controls.
  
  This steps includes the drafting of antifraud procedures in connection with previously identified risk factors. Specific procedures such as a whistleblowing program can be elaborated.

• Promotion of a cultural environment based on ethics and integrity.
  
  Our experience shows that the best controls will never be as powerful as a fraudster's imagination. That is why it is crucial to work and build a cultural environment which promotes ethical values and shows that fraudsters will not remain unpunished. The development of an internal code of ethics and the implementation of specific training programs are a key  elements of an efficient antifraud programs.
  

• Compliance audit and fraud investigations
  
  Corporate controls must be audited in order to ensure that  everyone understands and respect rules. Compliance audits can lead to objective appraisal of onsite situations and to the identification of areas of improvement.
  
  When the company has serious suspicions on protentially fraudulent acts, it is important to react as early as possible by starting a confidential investigation. If evidence are obtained, the company will not only have a possibility to claim for losses but also to show that dishonest acts are seriously considered by management.