Forensic Services

The term ‘forensic accounting’ refers to the investigation or analysis of accounting information or evidence to identify and quantify unusual transactions that have arisen due to either error or fraud. Forensic accountants are usually engaged to determine the true financial position of a company and to investigate unusual transactions. The circumstances of such investigations normally fit either one or other of these scenarios:

  • Assets have been misappropriated or are unaccounted or transactions have not been authorised or are outside agreed terms;
  • Financial misstatement where actual transactions have been omitted or incorrectly recorded to improve profit or overstate assets.
Fraud is an issue that has become increasingly prominent in the Indonesian public’s attention over recent years. As business expands across borders there is a steep learning curve as they encounter and adjust to new culture and legal environments. This, combined with the endeavor to increase transparency and thereby engender trust and encourage investment, means that the focus of the Board in many companies is turning to the development of policies to increase corporate governance and mitigate the risks of economic crime.

How PwC Forensic Services can help you

PwC Indonesia Forensic Services group is the dedicated group of professionals based in Jakarta
who specialize in investigating economic crime and providing advice on fraud risk management to various types of organizations. Our team is closely aligned to the PwC global network, thus able to facilitate specific cross-border services covering Asia Pacific, Africa, Europe and the Americas.

We offer clients strategic advice and assistance across a full range of forensic services, including:

  • Fraud Investigation Services
  • Forensic Technology Solutions
  • Suspicious Transaction Analysis
  • Forensic Accounting
  • Fraud Risk Management
  • Quantification of Loss
  • Anti Money Laundering
  • Foreign Corrupt Practices Act
  • Training Services


Fraud Investigation Services

Indonesia, as an emerging market can provide outstanding opportunities for investors. For many companies, the potential benefits and available market opportunities offered are so great that there is often a need to act quickly and decisively. It is during these times of dynamic change that businesses are vulnerable to fraud.

In Indonesia, corruption & bribery and asset misappropriation amongst other types of frauds are very prevalent. PwC Forensic Services has a proven track record with over 10 years experience in dealing with fraud within the Indonesian business environment.

How PwC Forensic Services can help you

Dealing with suspicions of economic crimes, such as fraud or corruption issues, requires much more than simple know-how. It requires speed, sensitivity, discretion, and also an in-depth knowledge of the legal and regulatory frameworks in each jurisdiction. Our professionals employ proven methodologies and combine an appropriate mix of staff and products customised to your needs.

In performing our services, we understand the importance of reacting quickly and confidentially to a crisis situation. We appreciate the need to stop illegal activity, safeguard your company's assets and reputation, prevent recurrences, and arrive at a resolution - with as little disruption as possible to the regular flow of business. We also have investigation specialists permanently based in Singapore, Hong Kong, Japan and Australia, and can provide rapid assistance throughout the Asia Pacific Region.


Forensic Technology Solutions

Today most organisations store their data electronically. The security, recovery, and analysis of electronic data have an increasing role to play in preventing fraud, conducting investigations, and resolving disputes.

Preserving and analyzing evidence in a legally accepted manner is often a key component in detecting and investigating fraud. Computer Forensic is a process that preserves electronic data required for future examination. It has been a vital too for many of our assignments involving fraud, data theft, sexual harassment, piracy and intellectual property disputes.

How PwC Forensic Services can help you

PwC Forensic Services is a leader in the field of computer forensics, having performed work for many government agencies, law enforcement bodies and businesses. We have a dedicated computer forensics laboratory in Jakarta to provide a rapid response to data recovery incidents involving computer systems.


Suspicious Transaction Analysis

Fraudulent activities often hide behind the complexity of financial systems and processes. Utilising advanced data matching techniques our forensic accountants are able to detect improper transactions and relationships; for example inappropriate relationships between employees and contractors, anomalies in financial transactions, duplicated payments, ghost employees, and other accounting techniques used to hide fraudulent activities.

How PwC Forensic Services can help you

Our forensic laboratory in Jakarta contains a high performance server that allows us to extract and analyse the organizations entire ERP system or specific accounts or ledgers.

The combination of the specialization of our computer forensic and our forensic accountants provide a unique approach to complex business matters. PwC brings advanced investigative techniques along with sophisticated with proprietary software and hardware to identify, seize and analyse information located on a computer system or any other storage media.

Our team is also able to assist clients to align and restructure information technology resources with the client’s business objectives to minimize key business risks.


Forensic Accounting

Forensic accounting investigative specialists work with financial information for the purpose of conveying complicated issues in a manner that others can easily understand.

In general, the work relates to financial statement misrepresentation and various internal frauds such as theft of assets, embezzlement, kickback schemes as well as corruption & bribery. The forensic accountant couples observation of the suspected employees with physical examination of assets, investigation, inspection of documents, and interviews of those involved. The result of these types of engagements enables the forensic accountant to offer suggestions as to internal controls that owners could implement to reduce the likelihood of fraud.

At times, the forensic accountant may be hired by attorneys to investigate the financial trail of persons suspected of engaging in criminal activity. Information provided by the forensic accountant may be the most effective way of obtaining convictions. A forensic accountant may also be engaged by bankruptcy court when the submitted financial information is suspect or if employees (including managers) are suspected of taking assets.

How PwC Forensic Services can help you

Our forensic accountants are expert at reviewing accounting systems, conducting large data gathering exercises, reconstructing financial records and performing complex financial analysis. We utilize advanced computing process to discover discrepancies and patterns that would otherwise have gone undetected. Our experiences have included reconstruction of books and records, investigation of business fraud, preparation of preliminary and formal valuation and loss quantification reports.

We are considered world leaders in the delivery of our accounting services and can draw upon global industry expertise at short notice. If required our forensic accountants can give expert evidence during arbitration or court proceedings.


Fraud Risk Management

Fraud and poor governance are serious risks for all organisations, as recent high-profile cases have shown. Dishonest behaviour can undermine operating efficiencies and reliability, and serious cases can severely damage an organisation’s reputation.

A rigorous approach to fraud risk management safeguards business value.

How PwC Forensic Services can help you

Our fraud risk management diagnostic is a key tool used to assess potential fraud risks and methods being used by an organisation to mitigate those risks. A diagnostic would include an assessment of:
 

  • Operational processes and procedures and systems
  • Information management systems including accounting & inventory management
  • Recruitment and training practice
  • Roles, responsibilities and authority of staff and management
  • Relationships with business partners and government
  • Investigation and incident response procedures

The purpose of our fraud risk management diagnostic is to identify and categorise fraud risks. The results are then used to improve the control environment and develop an intelligence based fraud risk management solution that is aligned with the organisation’s objectives.


Quantification of loss

The use of forensic accountants to quantify damages arising in commercial disputes is now commonplace. Quantification of damages is a commodity service. Damages calculation is best performed by forensic accountants who perform more than mere arithmetic, bringing to bear a full spectrum of financial, business and accounting skills to derive a soundly-based damages estimate.

Early, reliable assessment of the potential damages sum can be helpful for both plaintiffs and defendants in making decisions about whether to commence or to maintain litigation, and in considering settlement offers. Once the matter proceeds to court, the emphasis usually shifts to rigorous analysis and calculation, and presentation of a defensible position.

Quantifying loss that has been suffered can be a complex and challenging exercise.

How PwC Forensic Services can help you
 

We assist litigants and lawyers by:

  • Identifying the appropriate calculation methodology and using this to prepare a damages calculation, taking into account the relevant law of damages and the circumstances of the case
  • Identifying key assumptions in the calculations and providing advice as to how those assumptions might be proven
  • Preparing a report, setting out the relevant issues and presenting and explaining in simple terms the complex valuation and accounting concepts in the context of the dispute
  • Providing an informal report for use in mediation/settlement negotiations, including guidance on key issues. (Such a report will usually contain similar information to a formal expert’s report, but without being prepared to court presentation standard)
  • Providing briefing papers that can be used by lawyers or counsel for advice on specific issues or in the cross-examination of witnesses (including expert witnesses)
  • Reviewing opposing expert reports


Anti Money Laundering

The government of Indonesia has put serious consideration into Anti Money Laundering (“AML”) reformation. Indonesia enacted AML legislation in 2002 and in February 2005 and also established the Financial Transaction Reports Analysis Center (PPATK).

In early 2004 the Financial Action Task Force (FATF) removed Indonesia from its list of Non-Cooperative Countries and Territories. This has a positive impact to businesses as it reduces the transaction analysis required when dealing with Indonesian companies which then results in a lower cost for each transaction. The Government perceived this as a confidence-building step in achieving the final goal in eradicating money laundering in Indonesia.

How PwC Forensic Services can help you

Globally, PwC’s AML experience is draw from a decade of providing risk assessment, compliance program design, development, training, implementation, monitoring and independent testing for AML programs within financial services organization worldwide. Our specialists have served in the AML regimes of a number of countries, including Indonesia, the United States, the United Kingdom, Australia, and South Africa, enabling our clients to benefit from unparallel first hand understanding of recent AML legal frameworks and enforcement initiatives.

We have directed money laundering vulnerability assessments for banking and securities industry clients on every continent and made recommendations for reducing risk and establishing “best practice” in money laundering deterrence and compliance, including implementing Know Your Customer (KYC) profiling and monitoring solutions.


Foreign Corrupt Practices Act

Multinational corporations are challenged as they strive to comply with new regulations including the Foreign Corrupt Practices Act (“FCPA”). Both actual and alleged violations can damage corporate reputation and shareholder value, lead to business disruption, lawsuits and investigations.

How PwC Forensic Services can help you

The PwC Forensics Services practice provides supreme global resources to assist companies with FCPA investigation and remediation process. It covers implementation and assessment of FCPA compliance programs, performing background due diligence investigations on agents and intermediaries, and performing transactional investigations, under the direction of a company and its counsel.

Our professionals have a presence in over 40 countries providing the advantages of:
  • Understanding of local and regional culture, language, financial and regulatory systems
  • Worldwide network with professionals in the field who offer an advantage in international investigating issues and the global reach in a coordinated manner
  • International network of computer forensic specialists and cyber crime investigators
  • The expertise of qualified investigators who have held senior-level positions with major prosecutorial and law enforcement agencies in the United States, Canada, the United Kingdom, Europe, South Africa, and Asia



Training Services

Key to developing an ethical corporate culture at an organisation is the training of staff at all levels to manage and deal with anti-fraud issues, both at the strategic and operational level.

How PwC Forensic Services can help you

PwC has extensive experience in preparing and delivering training to assist companies to develop their own internal capacity in relation to anti-fraud, investigation and corruption issues as well as providing ethics and compliance training to both senior management and line management.



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