Trend #1.<\/p>\n
Inspection of the company after the start of a full-scale war with the Russian Federation, because for many companies this period is considered “Pandora’s box”;
\n
\nRecently, one of the entrepreneurs from the Forbes list contacted me with a complaint that the company’s cash reserves partially disappeared, as if they were sent to support the Armed Forces, but as it turned out, he did not know about this.<\/p>\n
In one more appeal, it turned out that management reporting was practically not conducted in the first half of the year after the start of the war, and accordingly, it now turned out to be quite difficult to calculate the financial result of 2022-2023.<\/p>\n
In the third request, it turned out that in the accounting software, the stocks are contained with a minus, that is, they have a negative value, although this is impossible, since the company ships goods every day.<\/p>\n
Conclusion: the period – “Pandora’s box” must first be restored using the procedure – English. “forensic recovery” – a financial audit should be conducted after recovery.<\/p>\n
Trend #2:<\/p>\n
An application for conducting a financial investigation from the side of business owners and partners in business with the aim of: selling a business, exit of one of the shareholders, distribution of dividends, resolution of disputes related to non-transparent activities of the company.<\/p>\n
In one case, one of the business owners, as a result of a conflict between partners, decided to leave the business. During the exit process, it became clear that the partners could not agree on the determination of the value of the business due to the fact that part of the activity, and accordingly the accounting, was conducted in a gray area.
\nAs a solution to this issue, a forensics procedure was applied to determine the real financial result for the last three years, all mutual calculations between partners were confirmed, and the real value of the company’s assets was deduced and the shares of each partner were estimated.<\/p>\n
Conclusion: transparent accounting is a must have for every business. If this is neglected, it will be necessary to spend a significant part of the time on conducting the forensics procedure.<\/p>\n
Trend #3:<\/p>\n
Checkup of the system of internal controls, which includes: cyber security, financial security, legal security and physical security;<\/p>\n
Recently, one of the TOP-5 owners from the Forbes list contacted me with a request to check the effectiveness and potential risks in the procurement system. According to the results of the Forensic procedure, numerous risks were identified, for example:
\na scheme was identified – (English Salami is how to cut pieces of salami) – the scheme consists in bypassing the system of controls in the part of concluding contracts with a long chain of approval for material amounts, instead a simplified system of approval of amounts by concluding contracts for immaterial amounts with the help of dozens of additional agreements, and so in the end a significant amount is obtained, but the chain of approval is quite small.
\nFor example, non-transparent accounting and procurement systems, where, for example, components that are in excess in the warehouse are constantly ordered: tell me, why?<\/p>\n
And in order to receive larger amounts of kickbacks from the supplier.<\/p>\n
Therefore, the client company suffers from such schemes, because the company’s liquidity is diverted due to this.<\/p>\n
And on the rest, procurement – where a tender is played in which the company with the best price wins, but only for several positions, where the price for one loan from the same company is quite high, which covers its low prices for other positions, and with the rest, a plus on minus gives a big plus, but unfortunately in favor of the customer.<\/p>\n
The problem with large companies that are growing quite dynamically is that their control systems do not keep up with their dynamic growth.
\nThus, they lose money along the way.<\/p>\n
Conclusion: in order to prevent such cases, it is necessary to hire a company – an outsourced provider of forensic services, which would build a control system in parallel, because this process is dynamic.<\/p>\n
Trend #4:<\/p>\n
The desire of business owners to come to an agreement in a conflict situation, because war in war is very expensive.<\/p>\n
As a result of the forensics procedure, numerous violations in the form of unscrupulous schemes were discovered in one company – the market leader, for example:<\/p>\n
– related parties – withdrawal of funds to controlled registered legal entities;<\/p>\n
– write-off of receivables;<\/p>\n
– unauthorized travel expenses;<\/p>\n
– rapid depreciation and write-off of assets: stocks, main assets;<\/p>\n
– distortion of financial statements;<\/p>\n
– theft of cash from the cash register;<\/p>\n
– dead souls and uncoordinated losses on GR with other business partners.<\/p>\n
In general, all these unscrupulous actions were accompanied by a mess in the accounting department, the absence of an accounting policy.<\/p>\n
The goal of every accounting mess is to confuse the owner, management, and in this case, business partners.<\/p>\n
After the release of the loss figures, which reached the figure with 6 zeros, a corporate conflict began, which was extinguished by a cold mathematical calculation of the cost of war, lawyers, courts and law enforcement in the event of war.<\/p>\n
Trend #5:<\/p>\n
An increase in transaction costs, correspondingly, an increase in the number of requests for forensics procedures;<\/p>\n
Crisis times always lead to higher transaction costs, why, you ask?<\/p>\n
Because during crisis cycles, capital volumes decrease, and global mistrust between business entities increases.<\/p>\n
In such cases, the forensics procedure is an ideal tool for checking the object of the agreement, because with its help you can:<\/p>\n
– check the reputation of both parties using the procedure – OSINT & HUMINT – verification of information using open sources and informants.
\n– perform a financial analysis and confirm the indicators of the company being sold;
\n– analyze and draw a conclusion regarding the legal basis of the operation of the object of purchase;
\n– to ensure the transparency of the agreement, etc.<\/p>\n
Thus, the trends of 2024 tell us about stormy times, but it is in such times that the anti-fragility of business is tested.<\/p>\n
All those who survive will become more efficient and flexible, the forensics procedure will help in this.<\/p>\n","protected":false},"excerpt":{"rendered":"
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