Internal investigations are a vital function for maintaining integrity, addressing misconduct, and mitigating legal liability. A proper internal investigation can shine light on the facts of an incident during a difficult time, bolster a company’s policy adherence, and discover gaps in current processes. However, when these investigations are conducted poorly or mishandled, they pose significant risks to the organization.
Imagine your business losing thousands or even millions of dollars through dishonest practices that could have been avoided. Sounds like a nightmare, right? But vendor fraud is a grim reality for so many businesses across the U.S. It is an ugly siphon on hard-earned profits through schemes that aren’t always easy to detect. From price-fixing to kickbacks, there’s almost no limit to what fraudsters might cook up.
When contemplating the purchase of a company or new business unit, fraud usually isn’t top of mind. However, seasoned business professionals should understand that overlooking the possibility of hidden risks in your acquisition target could lead to serious financial and legal consequences both now and in the future. Including a forensic accountant on your acquisition team could help you move the transaction along smoothly, without unpleasant surprises.