Ok so Covid-19 has struck! The economy is in a meltdown...
What happens next?
Do companies stop buying their essential services and
products?
If no, then how are they procured? How is the product
delivered- does the purchase requisition, quotations, bidding, purchase order,
invoicing, good received note process still kick in?
Or Covid-19, gives companies or its executives the leeway or
the loophole to play with the system and over-ride the system for their
personal benefit?
Thinking of which, fraud investigators would be challenged
with complex engagements of something called “past payable auditing”. The
procurement affected by intermediaries at the time of Covid-19 and lockdown
circumstances will be audited post companies re-opening their corporate
operations on full strength.
The following factors would have to be take into
consideration:-
1.
Quantity
2.
Quality
3.
Pricing
4.
Comparative quotations
5.
Approvals
6.
Maker- Checker
7.
Actual requirement/ Hoarding/ Black Marketing
8.
Imitation and copyright Issues
9.
Vendor due diligence
10.
Payment terms
11.
Commissions paid
12.
Suspense accounts including marketing and
“donations”
13.
Misuse of corporate social responsibility fund
14.
Inflow and outflow of funds
15.
Bribery and corruption- compliance to various
acts
16.
Tax including GST
17.
Regulator compliances
18.
Revenue and cost booking
The above are a few indicators of unusual use of any company
assets or red flags that could emerge as lull before the storm for the upcoming
period.
Would be sharing further inputs in future articles. For fraud risk awareness training for corporate and write-up please contact me on the below:
Raunaq Chawla
+91-9650668585
Happy to help with a smile!
