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General manager squeezed chemical purchasing margins through relatives
The former general manager of a European chemicals manufacturer had installed relatives in key positions in the company. Our forensic accounting team conducted a detailed audit of the financial records and discovered that huge sums of money had been paid to an entity related to the former GM, which was actually not on the company's supplier list and which had acted as an intermediary, collecting commissions before payments were finally made to suppliers.
Process review at European manufacturer revealed control deficiencies
Called in due to suspicions that a senior manager was defrauding the company, our accountants conducted an audit of financial management practices at the Shanghai facility of a European components manufacturer and discovered that no fraud had been committed but the financial management system was chaotic and contained major control deficiencies due to cultural misunderstandings and miscommunications. We were able to recommend detailed changes to modernise and strengthen the company's accounting arrangements.
Accounting system and controls review for professional services firm
We carried out an internal controls audit and accounting system review in Shenzhen for a medium-sized professional services firm with four offices in China. Our specialist identified significant weaknesses in the non-segregation of various financial management functions and in the handling of expenses, client costs and banking arrangements, and made substantial recommendations to close the loopholes and reduce the risks.
Internal audit at non-profit institution uncovered expenditure irregularities
ChinaWhys conducted a review of compliance with established policies and procedures for expenditure on a construction project at a prominent non-profit institution's China operation. We discovered significant irregularities in the expensing and purchasing process, pinpointing management failures, abuse of authority and corruption of the expenditure authorization process, and recommended measures to plug loopholes and eliminate systemic weaknesses.
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