Case Studies – Fraud Risk Management

Case Study 13:
Fraud risk reviews

The issue: PwC was engaged by the large company from energy industry to review capital expenditures in order to identify possible wrongdoing in the investment process.
Outcome: Our work revealed a number of irregularities concerning both the process of selection and cooperation with contractors. PwC also identified the weaknesses in the control environment over the investment process and prepared the route map as to how the risk should be mitigated.

Case Study 14:
Intelligence screening

The issue: PwC forensic team in Poland was engaged by international manufacturing group to perform investigative due diligence on the number of potential suppliers operating in CEE countries.
Outcome: Our engagement involved the information gathering process in Poland, Hungary and Slovakia. Based on the outcome of our work the client was able to asses the financial standing of the suppliers as well as the integrity of their key officers.

Case Study 15:
Designing and implementing fraud prevention strategie s

The issue: Following an action initiated by the American SEC against a global corporate, PwC was asked to advice the client on the implementation of anti-fraud programme in line with Foreign Corrupt Practices Act (FCPA) in the group subsidiaries worldwide.
Outcome: The Polish investigations team was involved in a review of procedures and internal regulations of the Polish subsidiary.

Case Study 16:
Due diligence on vendors

The issue: As a result of standard FCPA compliance procedures, a worldwide technology company identified some potential irregularities related to selected suppliers.
Outcome: PwC was asked to conduct an in-depth research of those entities to verify suspicions. Our investigation revealed that major suppliers of the Company were in fact related to one customer. Additionally, we obtained strong evidence that some of the services procured by the Company were not rendered.

Case Study 17:
Due diligence on employees

The issue: We were engaged to conduct an investigation in a chemical manufacturing company with regard to potential misappropriations in procurement and internal procedures.
Outcome: Our work revealed that several suppliers were related to current or former employees. We also identified procedural gaps which might have increase the risk of fraud occurrence.

See Fraud Risk Management page for further details.