Business Audits: Internal, Risk, and Forensic

Every business has a set of inherent risks. The trick does not lay in striving to create a risk-free business. That’s nigh impossible. Rather, the trick lays in (i) becoming fully aware of the nature of those risks (ii) assessing the damage they could potentially cause to the business in a worst-case scenario, and (iii) proactively mitigating them to the extent possible
Businesses are largely exposed to 5 kinds of standard risks
  • 1. Financial
  • 2. Operational
  • 3. Reputational
  • 4. Legal
  • 5. Climatic
At Outgrow, we help in identification of loopholes within the company’s standard processes & procedures that provide a window of opportunity to those looking to commit willful acts of omission or commission, unauthorized or malicious actions for personal gains, which are directly or indirectly against the fundamental interests of the business.
We also help in identification of any perpetrated acts of fraud, embezzlement, financial crime, illegal activity, asset misappropriation, conflict of interest, ethical lapse, personal gain, and acts that either are or can be perceived against the spirit of integrity.

The scope of these audits could cover the elements listed below.

 

RISK AUDIT

FORENSIC AUDIT

INTERNAL AUDIT

Financial Risk

Financial Crimes

Broken Processes

Operational Risk

Assets Misappropriation

Lack of independent evidence

Reputational Risk

Conflict of Interest

Maker, Checker, Approver Process

Compliance Risk

Extraneous/ Early Payments to Vendor

Data entry into ERP

Root Cause of Risks identified

Connivance/ Formation of Cohorts

Accuracy of Reporting

Failure Mode Effect Analysis

Vendor Favoritism

Master Data in ERP

Mitigation Plan

Over Invoicing from Vendor

User Access Privileges in ERP

 

Under Invoicing to Customer

Nature of Reconciliations

 

Delayed Collections from Customer

Book Closing Process