UAE: How forensic investigators are helping solve mysterious forgery case – News

Most forensic experts in the UAE are equipped to deal with accounting fraud and embezzlement challenges

Khaled Farouk. – Photos provided

Khalid Farooq has been instrumental in solving some of the most complex and mysterious cases in the UAE, including those relating to falsified and falsified invoices and charges related to shipping and storage charges.

Farooq, partner, risk and legal services at BDO UAE, one of the world’s largest audit and accountancy firms, called on investigators to ensure they had done what they could to investigate.

Sharing details of the case, Farouk said six of the seven defendants admitted to falsifying documents and benefiting from fee waivers and enriching themselves. But a seventh person’s credentials were used to complete the transaction without his knowledge.

After months of searching, Farooq revealed that the company’s public relations officer (PRO), who paid the fees associated with that particular transaction, confirmed that the seventh person in the case was not the person he paid for with his regular visits to pay for storage and shipping.

“I showed him pictures of the people who usually handle these types of transactions. He was able to identify who turned out to be the defendant’s supervisor. He also mentioned that the same supervisor approached him and told him not to mention anything to the investigators, To avoid getting into trouble. We called the supervisor, who admitted his wrongdoing, and we were able to get the seventh person released from the authorities,” he told harrij times in an interview.

Founded in 1963, BDO is the fifth largest auditing, accounting and consulting services firm in the world. It started operations in the UAE in 1975. It has attracted senior emirates, including Khalid Farooq, as part of an emiratization program in line with the government’s initiative.

Whether fraud, financial forensic examination or cyber forensic investigation, BDO solves highly complex cases in the UAE and Middle East.

Farooq added that most forensic experts in the UAE are well equipped to deal with the challenges of accounting fraud and embezzlement.

However, the internal structure of some organizations is wrong, because they don’t even have a proper audit department, and some financial professionals do everything.

“Companies are well equipped to handle fraud and embezzlement cases. However, they need the right skill set because auditing is different from investigation and people need a different mindset and approach,” Farooq told Khaleej Times in an interview.

He emphasized that many companies make this mistake because they are two different skills and should not be mixed.

Farooq noted that companies try to cut costs by requiring internal auditors to carry out entire procedures, even those that fall outside their remit.

“For example, they have them doing quality assurance, risk management and compliance, investigations, special reviews outside of audits.”

Some entities have financial managers audit to reduce costs, with internal auditors reporting to the managing director or chief executive. From a governance perspective, this is considered a serious problem. Internal audit should maintain its independence by reporting to the audit committee or board of directors. Therefore, culture should come first and minimize control and abuse within the organization.

He advises that professional services should be carefully selected to carry out work with the right expertise, as a well-constructed case based on factual evidence has a higher chance of success.

“But one thing should be understood, a good investigator and lawyer may be able to construct and build a good case that seems weak. On the other hand, a strong case may be shattered by the inexperience of someone without the appropriate expertise. Get ruined and dismissed. Companies shouldn’t just focus on reducing costs because they could end up paying more.”

“The process of fraud and forensics investigations is reactive in nature, not proactive, so it makes more sense to hire experts rather than attempt to conduct an in-house investigation, as this is a very specialized field. Just doing things right is always best for the organization.”

waheedabbas@khaleejtimes.com