In an Investigative Accounting assignment, we assist management and fund managers to identify the issues in their financial report. Most of the time, it arose from wrong assumptions and bad inputs (data from operations) resulting in significant fluctuations in the accounts.
Our dedicated team assists clients uncover the issues by taking a structured approach to examine how data is collected and input into the system by various departments and consider all the relevant assumptions made by the company. We also conduct interviews with key staff to determine their level of understanding of their work and obtain feedback with a view to improve the data collection process.
Set out below is an example to explain how we assist our clients in Investigative Accounting:
The Company was a precision engineering and for years, the management could not explain the high variances in their monthly report.
We conducted an in-depth investigation on how the Company build up its financial report and noted that the BOM (Bill of Materials) for 5,000 products have not been updated for many years and was not reflective of its actual cost. The Company proceeded to set up a team to rebuild its BOM for the key products.