Fraud Investigation & Dispute Services - Ernst & Young - Estonia

Client goals

Both due to the current economical downturn and the increasing pressure from the regulatory environment we assisted one of the largest process manufacturing companies (hereinafter – the Client, Company) in the areas of risk management and internal control system improvement to ensure the implementation of regulatory compliance requirements, improve existing internal control system and risk management practice applied and to increase the efficiency of operational management.

Set of interrelated projects implemented during the last 2 years were primarily aimed to the identification and the assessment of major business risk areas, adequacy of existing control environment, evaluation of potential areas and level of fraudulent activities in the Company.

Ernst & Young approach 

Ernst & Young assisted the Client in:

-          Process reviews and optimization, including:

§          Analysis of the existing business processes;

§          Identification of potential areas for efficiency improvement;

§          Description of recommendations and preparation of action plans.

-          Risk management systems set-up and implementation, including:

§          Definition of business risk map;

§          Prioritizing the risks based on likelihood and significance scales;

§          Agreeing on the level of perceived risk control effectiveness;

§          Interviewing and sessions with the members of top and middle management.

-          Forensic audits and internal control system structurization, including:

§          Review, detailed analysis and verification data, electronic information and documentation related to the cases investigated;

§          Analysis of appropriate processes and procedures;

§          Identification of business areas having the highest risk of fraud/ breach of internal control;

§          Interviewing and identification of potentially implicated employees.

During the implementation of the above mentioned projects close cooperation with the representatives of Client’s top management lead to the successful implementation and achievement of goals set.

Additionally, our cooperation resulted not only in the success of the projects implemented, but it also helped the Client’s internal audit professionals assisting us in during the engagements to take over the leading practice elements in the fields of risk management, internal control evaluations, fraud investigations due to the close work with Ernst & Young.

Moreover, based on the recommendations provided by Ernst & Young the Company could proceed with the improvement of existing internal control system following the middle and long term plan prepared jointly with the assistance of Ernst & Young.

Benefits

The above mentioned areas of our assistance have led the companies to the improvement of internal control system, better understanding and management of organization-wide business risk, improved project and appropriate process management.