Forensic reviews and financial investigations
Audit and assurance
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On demand
A suspected duplicate payment, unexplained stock loss or diversion of collections needs a defined investigation. The first task is to preserve relevant records and establish what happened without treating an allegation as a proven conclusion.
TheTaxCo conducts financial investigations through the relevant forensic, accounting and legal experts, with the required authority and access to evidence. We agree the question, period, entities, intended recipient and report use before substantive examination begins.
Define the question and protect the records
“Check everything” gives neither the investigator nor management a workable boundary. A more useful question identifies the transaction, process, period or alleged conduct. An initial scoping discussion can help frame that question even when the amount or individuals involved are not yet known.
We identify who has authority to commission the work and provide access. We also consider whether the proposed reporting line creates a conflict, particularly where a person involved in the concern controls the records or would ordinarily receive the report.
Before records are changed, reconciled or replaced, preservation requirements are agreed. The relevant material may include ledgers, bank records, invoices, approvals, inventory movements, messages and system logs. Source details, dates and custody are recorded. Where digital evidence requires specialist collection, we arrange the appropriate technical experts and document their role and preservation procedures.
If legal proceedings are contemplated, counsel should advise on preservation, interviews, legal rights and use of the report. Marking a document “confidential” does not by itself settle its legal status.
Follow the transaction through the evidence
The examination connects the recorded transaction with its commercial basis, approval and settlement. Depending on the concern, that may mean following a supplier from creation in the master data through purchase, receipt and payment, or tracing a customer collection to the bank and subsequent ledger entry.
We distinguish a control weakness from an unsupported transaction, a quantifiable loss and evidence of deliberate conduct. The same accounting difference may have several explanations. A timing error, duplicate entry or legitimate credit note needs to be considered before attributing a discrepancy to misconduct.
Evidence question | What the investigation seeks to establish |
|---|---|
What was recorded? | The transaction, amount, date and account entries |
What authorised it? | The approval, agreement or instruction and its source |
What actually moved? | Money, goods or another benefit supported by independent records where available |
Who could perform the action? | Roles, permissions and relevant access evidence |
What remains unexplained? | Missing records, conflicting accounts and limits on a conclusion |
Data analysis can identify patterns for further examination, such as repeated invoice details, unusual payment timing or unexplained reversals. A flagged transaction is a lead to test, not proof of wrongdoing.
Interviews and explanations
The scope determines whether interviews are needed and who conducts them. The sequence matters: records may need to be secured and analysed before questions are put to individuals. Relevant explanations are documented and tested against the evidence.
Where information conflicts, the report states the conflict and how it affects the finding. We do not fill a gap with an assumption about intention. If records cannot support a loss calculation, the report should explain the limitation rather than present an unsupported precise total.
What the report contains
The agreed report sets out the questions examined, procedures, evidence relied on, findings and limitations. Where quantification is possible, the calculation shows the transactions included and the basis of treatment. Confirmed amounts, estimates and amounts still requiring evidence are kept distinct.
We agree the authorised recipients and intended use of the report and provide follow-up support for its findings. A financial investigation report does not decide criminal or civil liability. Legal action and external reporting require the appropriate professional advice and authority.
Control recommendations can be included where they follow from the findings. A broader redesign or implementation assignment is separately defined so the investigation’s evidence and conclusions remain identifiable.
Starting records and timetable
For the first discussion, describe the concern, approximate period, entities and record systems involved. Explain whether a payment is imminent, records may be lost, or a response deadline exists. Detailed access and document requests follow the authority and scope review.
The timetable depends on record preservation, volume, third-party evidence, interviews and the need for specialist support. We distinguish an initial factual assessment from a completed investigation. Early findings may change as further evidence becomes available.
Can you investigate before we know the value of the suspected loss?
Yes. Establishing whether there is a supported loss and how it can be quantified may be part of the assignment. An unknown amount is a reason to scope the work, not a reason to dismiss the concern.
Will the work remain confidential?
Access and reporting arrangements are agreed and controlled. They remain subject to applicable professional and legal duties; absolute secrecy cannot be promised.
Would an internal audit be more suitable?
If the objective is to assess ordinary processes and controls without a specific allegation, internal audit may be the appropriate engagement. A defined suspected event calls for an investigation designed around that event.
Email TheTaxCo, message us on WhatsApp or book a call. Share a brief description of the concern, the relevant period and who is authorised to commission the review. Avoid altering the records concerned while preservation arrangements are being established.