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Nearly all businesses today process the majority of their purchase and sales transactions on computers, as well as a host of other accounting functions such as payroll. Over the passage of time, businesses build up vast banks of transactions on their sales and purchase ledgers with many of those transactions carrying a separate set of standing data for the third party involved. It can be like searching for a needle in a haystack when unforeseen queries / investigations arise without detailed existing knowledge of such data and / or a suitable investigative tool for mining and manipulation of these large data sets.
PKF Finder
PKF Finder is a bespoke data mining and data manipulation tool which has been developed by PKF. It can be used to interrogate / investigate data sets providing critical management information regarding computerised accounting functions, in particular to assist in identifying possible cost savings and highlighting areas of fraud risk.
Client driven service
Due to its bespoke nature PKF Finder can be tailored to the specific requirements of each client and deployed in a variety of formats. The range of the service can be set as widely or narrowly as desired, for example across an entire purchase ledger, or a single department of a business’s payroll function.
What PKF Finder can do for you
If asked outright few business would admit to overlooking knowingly duplicated payments, payments to fictitious suppliers, or possible instances of fraudulent transactions. PKF Finder can be deployed to help investigate all / any of the following areas depending on the requirements of the client.
Data quality issues
PKF Finder can mine and manipulate large volumes of business data to check the quality and integrity of data, including:
- missing data
- multiple ledger / individual account entries for a single person / supplier
- dormant accounts.
The identification of such items can lead to correction of errors in standing data, pricing and processing savings and the reduction of duplicate payments.
Efficiency of management control procedures and errors in processing
With growing emphasis and attention on the correct operation and efficiency of management procedures and controls PKF Finder can identify or highlight:
- authorising officers that are inconsistent with, or which exceed, permitted authorities
- control weaknesses and instances where there have been overrides
- large numbers of transactions or invoices processed from one supplier which could be amalgamated into fewer (or one single) regular invoice(s)
- duplicated ledger payments to bona fide or fictitious suppliers and employees (which may be recoverable)
- errors in VAT treatment (which may lead to recovery of overpayments)
- discrepancies between amounts invoiced and amounts paid.
Fraud risks
Identifying instances of business fraud is not easy. A high proportion of business fraud is committed by senior employees, acting either alone or in collusion with suppliers or other third parties. This is because insiders know the business, its systems and controls, and because they often act in the knowledge that (with careful planning) their risk of discovery is small. PKF Finder highlights many fraud risks and helps detect common instances of business fraud, including:
- invalid VAT registration numbers (which may help to prevent or identify non-compliance / issues and instances of VAT carousel fraud)
- multiple suppliers operating from the same, or illegal addresses
- large volumes of invoices processed for amounts just below authorisation limits (to avoid detection by existing management control procedures and checks)
- invoices for unusually large amounts for a supplier.
In summary PKF Finder offers many services and potential benefits to both small and large businesses. It can identify potential cost savings in a range of areas, from duplicate payments and VAT mis-postings to key management information across all business ledgers. While most fraud is only detected after the event (when only partial recovery of losses is often the best outcome achievable), PKF Finder offers the opportunity to discover past frauds sooner and attempt recovery at an earlier stage, and to prevent future frauds. |
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