Counter Fraud Audit

Client

Local Government Organisation

Issue

Following an internal review, the organisation had raised concerns that a possible fraud had been committed. Signal, were engaged to look into the alleged fraud and comment on the risk exposure of the organisation to further issues of this kind.

Action

Following an initial scoping meeting, it was decided that the best approach would be to conduct a full audit of the area where the alleged fraud had taken place.

Signal conducted a desk survey of the existing process and systems that existed and from this compiled a comprehensive risk and question set.

All personnel who were directly involved in the process were then interviewed in an attempt to document the system and identify if the existing control mechanisms were appropriate and effective.

Following the interviews a set of observations were then carried out to ensure that the interviewee’s perceptions of the processes were accurate.

From these actions an issues/risks and recommendations report was submitted to the senior management.

Findings

The audit highlighted a complex structural system that was made more acute by organisational politics.

The audit uncovered cultural, structural and behavioural issues that significantly raised the risk exposure of the organisation to fraud.

The recommendations that were submitted to the organisation were wide ranging and encompassed all of the areas of concern highlighted in the audit.

From the report, the necessary structural changes were made and senior management embarked on a cultural change programme in an attempt to mitigate the risks highlighted in the area of organisational culture and behaviour.

To learn more of this case study, please email: enquiries@signalconsulting.co.uk

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