Forensic

Alongside major success stories, organisations can also face various internal and external fraud and other corrupt practices that can negatively affect the organisation’s financial performance, but in the worst case, even lead to bankruptcy or liquidation.

External fraud can be, for example, cyber attacks, fraudulent letters, fake invoices as well as fraud by (business) partners. The most common forms of internal fraud are asset misappropriation, embezzlement and corruption. Less common but severely threatening to the survival of the company are financial statement fraud and money laundering. All of these are even more perilous due to the fact that these forms of fraud usually take place over a long period of time, sometimes for several years, before being discovered. It was identified in an international survey that the median loss caused to an organisation by fraud amounts to around $100,000 per year (ACFE* Occupational Fraud Report 2022).

Difficult times in the economy usually increase the risk of fraud.

Karen Einre

Head of Risk Consulting, Internal Audit and Forensic Services

KPMG Baltics OÜ

mail
call

Addressing your needs

Investigation of fraud
- We carry out an independent and objective investigation process.
- The fraud investigation core team is comprised of KPMG’s best professionals with a wide range of experience and skills related to investigating and/or providing internal audit services. The team also includes Certified Fraud Examiners (CFE*).
- If necessary, we involve professionals from other areas who are able to collect and examine IT evidence, have a thorough knowledge of the money laundering, financial or tax system or have other specific skills, knowledge and experience. We are also able to involve legal experts from KPMG Law Firm.
- In cooperation with our colleagues working at KPMG in other countries, we are ready to handle international cases involving several countries.
- During the investigation, we collect documentary evidence from various databases and data sources, as well as conduct interviews with persons who have or may have relevant information. If necessary and possible, we collect evidence in the format required for litigation and advise you on the actions to be taken to protect evidence.
- If fraud has been reported through the whistleblowing channel (speak-up line), we help ensure the confidentiality of the whistleblower. Upon agreement, we inform the whistleblower about receiving the report on your behalf and provide them with feedback on the applied follow-up measures in accordance with the requirements of the legislation.
- At the end of the procedure, we prepare a comprehensive investigation report in which we present our observations in a clear and understandable manner, including an overview of the most important evidence.
- *ACFE – The Association of Certified Fraud Examiners, which also issues CFE certificates.
IT investigations
- Our IT experts help collect, preserve and analyse electronically stored information (ESI) for investigations or litigation (e.g. analyse or preserve the contents of an email inbox, various data media etc.).
- With the help of KPMG’s data analysts, we are able to process and analyse large amounts of data if necessary.

Fraud risk management and anti-corruption
- We thoroughly map and analyse the risks of fraud and other misconduct in your organisation and suggest which controls should be implemented to detect, prevent and manage fraud.
- We draw up internal procedures aimed at preventing fraud or help update existing ones, as well as make proposals on how to better communicate the principles of ethical behaviour to the employees of your organisation and thereby also prevent fraud. If desired, we will provide training to the employees.
Anti-money laundering and counter terrorist financing
- We help your organisation assess anti-money laundering and counter terrorist financing (AML/CTF) processes against current legal and regulatory requirements and good practices, and also assess processes’ actual efficiency. We also help design and implement or update AML/CTF policies and procedures.
- We can assist you with assessing risks, designing the organisational solution, carrying out AML compliance audits, developing policies and procedures, and auditing clients and potential partners. We can also provide training in AML issues.
- The services are provided by an experienced team having a broad-based view as its members have assessed AML activities as well as implemented relevant measures in credit institutions first hand.
Integrity due diligence
- We collect and analyse information regarding the background, reputation and integrity, and business track record of individuals and organisations so that you can make informed decisions about whether to continue an existing business relationship or establish a potential new business relationship. We are also able to conduct integrity due diligence in other countries of the world with the assistance of KPMG’s international network.
- Where necessary, we help collect background information for ongoing investigations and potential lawsuits.