Background

FRP was engaged by a FTSE listed company to investigate a liability that had been on its balance sheet for several years and to investigate whether there was any fraud and/ or corruption surrounding the deals that made up this liability. The client is in the industrial transportation sector. Our engagement was as a result of the company’s auditors raising several questions during the year end audit process. The company’s shares were suspended whilst our investigation was conducted.

Action

Our Forensic Services team undertook an independent fact gathering investigation to establish the nature of the liability and why it had not been paid. We worked closely with the company’s solicitors and auditors to understand the facts and whether the issue was isolated or not. We conducted interviews with various individuals in senior positions at the company and those that had been involved in the deals that made up the liability to determine the fact base. FRP’s forensic technology team assisted with the investigation by imaging mobile devices and hosting email data on our e-Discovery platform, RelativityOne. Using this platform, we performed targeted searches to assist in our understanding of the deals and who was involved.

The team obtained documentary evidence to further understand the policies and procedures in place at the organisation and reviewed the client’s wider systems and controls to determine whether these were adequate for purpose.

Following the investigation, we prepared a written report outlining our findings. Our report also outlined our review of the systems and controls which the company had in place.

Outcome

Our client was able to use our report to assist with their year-end audit sign off process of the company’s financial accounts and subsequent suspension of their shares was lifted.