Forensic Accounting

Tax Investigation

Fraud Investigations


Welcome to FA Forensics Ltd

In recent years, corruption scandals have hit the headlines all around the world, which have exploded the myth that corruption is a problem which is confined to a specific sector or to the developing world.

Extensive efforts have been made around the world to improve laws and definitions to ensure that legal processes are capable of adequately punishing fraudsters, corrupt employees and corporate psychopaths. However, we have not yet seen the same effort made by organisation in detecting attempts and preventing them succeeding in the first place.

Or is it all about ‘Cheat if you can because others will cheat on you?’

Many senior executives believe either that their organisation is so much better than others that the likelihood of fraud and corruption is low, or alternatively that since there have not been many problems in the past then there cannot be any.

Once executives have experienced the effects of a major fraud or corruption scandal, they realise that their past inaction has led to significant losses.

Bear in mind that these losses eventually come off the bottom line, therefore every dollar lost reduces net income by the same amount.

Let’s say the profit margin of an organisation is 10 per cent. That organisation requires 10 times the revenue to be generated in order to recover the lost income. Hence to recover a $10 million loss requires $100 million of extra revenue.

The cost of fraud is not just a number. Despite the actual financial loss, in most cases there are other hidden indirect costs:

  • Constrains on expansion and development
  • Damage to reputation
  • Employee morale
  • Costs of investigation
  • Cost of all the on-going cases not discovered

In certain regulated sectors internal fraud can expose the organisation to the risk of heavy fines for poor fraud controls, for example. In other cases, it might be necessary to interview lots of staff as part of the investigation, possibly taking them from their duties for half a day or more.

A way of making money: Stop losing it!

Once the opportunity to stop losing huge sums of money is recognised at the board level, there are effective measures which can be put in place to prevent fraud and corruption.

FA Forensics Ltd
Tel:0207 566 4056
Company number 10646756
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