• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Mock exams
        Learning Hub data privacy policy
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        Key dates
        Book distribution
        Timetables
        FAE Elective Information
      • Exams
        Exam Info: CAP1
        E-assessment information
        Exam info: CAP2
        Exam info: FAE
        Reasonable accommodation and extenuating circumstances
        Timetables for exams & interim assessments
        Interim assessments past papers & E-Assessment mock solutions
        Main examination past papers
        Information and appeals scheme
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Conferring dates
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Audit qualification
        Diversity and Inclusion Committee
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        What do Chartered Accountants do?
        5 Reasons to become a Chartered Accountant
        Student benefits
        School Bootcamp
        Third Level Hub
        Study in Northern Ireland
        Events
        Blogs
        Member testimonials 2022
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Training firms update details
        Recruitment to and transferring of training contract
        Interview preparation and advice
        The rewards on qualification
        Tailoring your CV for each application
        Securing a trainee Chartered Accountant role
      • Support & services
        Becoming a student FAQs
        Who to contact for employers
        Register for a school visit
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        Young Professionals
        Careers development
        Diversity and Inclusion Committee
        Overseas members new test
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Other client services
        Practice Consulting services
        What's new
      • Overseas members
        Key supports
        Overseas members news
        Tax for returning Irish members
      • In business
        Networking and special interest groups
        Articles
      • Public sector
        Public sector news
        Public sector presentations
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        CHARIOT/Institute Technical content
        TaxSource Total
        The Educational Requirements for the Audit Qualification
        Pocket diaries
        Thrive Hub
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • The Institute
☰
  • Home
  • Articles
  • Students
  • Advertise
  • Subscribe
  • Archive
  • Podcasts
  • Contact us
Search
View Cart 0 Item
  • Home/
  • Accountancy Ireland/
  • Home/
  • AI articles

Financial investigations: what you need to know

Apr 01, 2022

If you find yourself having to conduct a financial investigation, the first steps you take can have a crucial bearing on the success or otherwise of the eventual outcome, writes Sinead O’Neill.

It can be tempting to react immediately when you or a client identifies, or suspects, a problem with the company finances. Careful consideration should be given to all investigative actions from the outset to ensure that the integrity of the outcome cannot be called into question.

First steps

Before commencing any internal investigation, take a moment to consider the following issues:

  1. Time sensitivity – Does an investigation need to commence immediately, to prevent or reduce the damage to the business, or protect the evidence?
  2. Confidentiality – The matter must be kept confidential to maintain the robustness of the investigation process, avoid any further efforts at concealment, and comply with HR policies. The investigation could be carried out either overtly or covertly. In either case, however, confidentiality is crucial.
  3. Legal privileges – While this might not be at the forefront of your mind initially, you should seek appropriate legal advice before taking actions that might compromise the investigation.
  4. Expertise – Do you or your client have the necessary skills in-house to investigate the matter properly, or do you need to refer the matter externally or to a local authority?
  5. Objectivity – Those investigating should maintain objectivity and ensure there is no conflict of interest that might compromise the integrity of the outcome.

Ideally, you or your client should document the investigation plan, assigning roles, responsibilities, and tasks, to key individuals.

It’s worth bearing in mind that your initial suspicion or hypothesis might not have any merit. Keep an open mind and go where the evidence takes you.

This may mean revisiting and revising your plan of action and timelines for the investigation, so that sufficient time and resources can be given to gathering and analysing evidence as the process unfolds.

Evidence gathering

An essential element in any investigation is evidence and careful consideration should be given to where the evidence is located. Is it on electronic devices? Are the devices owned by the company, or are they personal to the employee? Is the evidence password protected? Does getting the password require interviewing witnesses?

Alongside these considerations, HR policies should be consulted to ensure compliance with internal policies.

It is crucial that the evidence gathered is not compromised in any way. You might need to engage experts to extract the data to protect its integrity. Resist the urge to delve straight into the source of evidence.

Electronic data

It is rare these days that a financial investigations will not involve some element of electronic data. A forensic image should be taken of the data, where possible, and should be used for investigative analysis to maintain the data’s integrity.

Data analytics can be beneficial in any investigation as it can help to identify patterns, trends, and key relationships.

Keywords can be run over copied mailboxes and mapped to individuals, for example, identifying who is discussing the matter in question and to what extent. This level of analysis would be near-impossible if reliant on manual techniques alone.

Full-circle reporting

It is essential to acknowledge that work should not cease upon the conclusion of the investigation. The results of the investigation should be communicated, corrective action taken, and the performance of the investigation evaluated.

This full-circle reporting can be invaluable to a company because it strengthens the organisation’s defences while also discouraging future in-house wrongdoing.

Investigations are not only a critical component of uncovering wrongdoing, such as fraud, but also act as a deterrent to others both within and outside of the business. As such, it is vital that they be carried out correctly.

Sinead O’Neill is the Director of Forensic and Investigation Services at Grant Thornton Northern Ireland. 

The latest news to your inbox

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast
Antrim BT2 8BG, United Kingdom.

TEL: +44 28 9043 5840

Connect with us

CAW Footer Logo-min
GAA Footer Logo-min
CARB Footer Logo-min
CCAB-I Footer Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
LOADING...

Please wait while the page loads.