The new director of a football organisation asked PwC to investigate allegations of financial impropriety from 2015 to 2019. The aim of the objective forensic review, conducted at club headquarters and off site, was to find out whether financial misconducts, conflicts of interest, or policy circumventions had taken place and to what extent. And, based on factual findings, to mitigate risk and potential legal recourse and to develop a plan.
PwC’s Forensics experts set to work. They focused on three areas: development of an Internal Due Diligence plan, forensic review of the organisation’s financials, and assessment of concrete steps to curb financial fraud.
The team interviewed key personnel and reviewed physical and electronic data. However, accounting data was unreliable, and they discovered gaps where there was no data at all. Red flag! Potential mismanagement. Red Flag! Possible abuse of power. Both in key areas of finance and operations.
The organisation’s accounting was not in line with generally accepted practice, and reconciliation to bank statements proved incomplete. Business expenses were often paid in cash with the same person approving expenditure, receiving goods and services, and approving payments. Inflows and outflows of cash were not accounted for, and due diligence of bank account details was inadequate. There was a clear lack of oversight, regulation, and reporting of utilisation of the organisation’s subventions.
PwC proposed: further investigations to rule out excess spending and insider involvement, and development of action plans for putting compliance and controls into place.
Whistle! Kick-off new game plan.
When a crisis of integrity such as allegations of fraud and corruption comes up, we respond immediately. Our core forensic experts travel straight to the site to investigate. Back at our forensics lab in Zurich, our colleagues from Forensics Technology Solutions trained in acquisition and analysis of electronic data set to work and our legal experts review files as they come in.
Forensic Technology Solutions Switzerland has conducted large and complex global investigations and disclosure exercises. We are a special tech team within PwC Switzerland connected to the global PwC Forensics network with more than 3,000 investigators and forensic accountants in 75 countries.
It all comes down to experience, expertise, capacity – and trust.
Are you a tech sleuth? We’re always looking for bright, inquisitive talent to join our Forensics Technology Solutions Team. Apply now!
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