Forensic Services. kpmg.hu

Transcription

1 Forensic Services kpmg.hu

2 We help you curb your losses. Our forensic team provides services designed to assist you in matters of a commercial or financial nature that may result in a legal or regulatory action. Our services further include the support of organisations and professional practitioners involved in litigation, or disputes that may lead to litigation, for example by assisting in the calculation of damages or loss of profits. We are often called upon by our clients to investigate suspected financial fraud and other unethical or illegal financial or commercial activity in their organisations. By recommending fraud prevention strategies and vetting commercial agreements, we assist our clients in reducing the occurrence of fraud or disputes and the costs associated therewith.

3

4 Complexity of Business Complexity of Business The cost of doing business in today s world requires a balance between the current global business climate and the increasing pressure of regulatory oversight. This environment brings with it increased incidents of commercial litigation and other disputes between business entities, highly regulated codes of business practice and corporate conduct, and increased opportunities for local and cross-border fraud or other illegal activity. We provide approaches that comprise better practice domestically and globally. These situations can threaten the financial performance of an organisation, or at worst, put the viability of the business at risk. Tarnished reputations, eroded staff morale, damaged customer and supplier relationships, and wasted management time result in significant losses. Specialist independent investigation, support and advice are often required to quickly and effectively deal with these issues. 4 Forensic Services

5 How can our services be beneficial to you? KPMG is one of the world s leading networks of professional firms providing business advisory services. We are proud of our network s strong and established reputation, a reputation that is built on a long history of independence, integrity and objectivity. Our forensic team is part of a global network of professionals who seek to help our clients effectively manage the challenges of an ever-changing, complex business world. Our regional practice provides forensic services not only for Central & Eastern European markets, but also has a global reach. Our clients can consistently receive the right advisory services at the right time from the one advisor no matter where in the world they do business. Our dedicated team comprises experienced individuals, supported by a highly experienced senior management with responsibility for the whole of Central & Eastern Europe. These professionals have complementary skills and can thus deal with virtually every aspect of our clients forensic requirements. We understand the legal environment in which disputes arise or how investigations and regulatory investigations are conducted within Central & Eastern Europe. The team leadership has worked with local attorneys on numerous matters relating to disputes, fraud and corruption in Central & Eastern Europe. We are known for providing practical advice to address our clients complex forensic issues. That s why we have a significant track record. We combine our knowledge of accounting, business, finance, IT and investigations with management psychology, law enforcement and organisational integrity credentials. This knowledge extends not only to an understanding of the requirements of criminal law and procedure and evidentiary matters, but also to relevant issues such as data privacy and data protection. Our clients gain access to the latest knowledge and advanced skills from industry-focused professionals who understand their business. We provide forensic services to a wide range of industries in Central & Eastern Europe. We have the relevant knowledge of local business practices, and provide approaches that comprise better practice domestically and globally. Forensic Services 5

6 Investigations of Alleged Fraud, Corruption and Financial Irregularities and Misconduct Regulatory Fraud Risk Management Our Forensic Services include: Investigations of Alleged Fraud, Corruption and Financial Irregularities and Misconduct Regulatory: Investigations Relating to Compliance with Regulations or Legislation Fraud Risk Management Dispute Advisory: Agreement Vetting Alternative Dispute Resolution Dispute Advice Expert Witness Supporting services: Forensic Technology Corporate Intelligence Our investigations are cost effective, comprehensive and independent. 6 Forensic Services

7 Forensic Investigations of Alleged Fraud, Corruption, Financial Irregularities and Misconduct When suspicions of fraud, or bribery and corruption, or financial misconduct and mismanagement surface, specialist independent investigation, support and advice is required to quickly and effectively deal with these issues. We identify and investigate unexpected behaviour to discover the facts of suspected fraudulent activity within or against organisations. Our cost effective investigations help management to understand the facts, take effective action to prevent reoccurrence of the irregular acts, maximize recovery of losses caused by the irregular activity, and take the appropriate legal action. Regulatory: Investigations Relating to Compliance with Regulations or Legislation Regulations and legislation, if breached, may result in serious consequences to companies including substantive costs. In today s world, companies are increasingly subject to local, national and international scrutiny. Examples of such regulatory investigations include the misuse of personal data, the payment of bribes to foreign public officials, the laundering of money derived from illicit means, activities that may be deemed as anticompetitive, and the establishment of cartels. Specialists from our forensic team are able to assist companies in preventing such breaches from occurring. We can conduct an investigation that is cost effective, robust, comprehensive and independent. Fraud Risk Management We deliver a range of services designed to advise organisations on the effective prevention and detection of fraud and other unethical or irregular behaviour, and steps to remediate situations where fraud has occurred. We assess the risks of fraud and irregularity to the organisation, evaluate the current controls, advise on the strengthening of internal controls, and assist in limiting the costs due to fraud. We advise management on the development of appropriate fraud prevention strategies and an overall anti-fraud framework for the organisation. We assist management in the strengthening of corporate integrity, developing codes of conduct, providing integrity assessment programs, and delivering of ethics and fraudawareness training to the organisation. We utilise data analytics, digital evidence recovery and other technology-based techniques as appropriate. Forensic Services 7

8 Dispute Advisory Services Agreement Vetting Alternative Dispute Resolution We help organisations that choose to work with a mediator or to appoint an arbitration panel. Dispute Advisory Services Our forensic team provides services designed to assist you in matters of a commercial or financial nature that may result in a legal or regulatory action. The global business climate brings with it increased incidents of commercial litigation and other disputes between business entities and increased opportunities for local and cross-border disagreements. These situations can threaten the financial performance of an organisation, or at worst, put the viability of the business at risk. As the cost of litigation, in terms of cash outlay, management time and business relations, is high, management dealing with such matters require a clear understanding of the strengths, weaknesses and value of their case from an accounting perspective in order to make a sound business decision on what course of action to pursue. We can help you in the following areas: Agreement Vetting Alternative Dispute Resolution Dispute Advice Expert Witness 8 Forensic Services

9 Agreement Vetting Contracts between business partners, such as purchase and sale agreements or joint venture agreements, often involve an element of future compensation based on events that will occur after the contract is in force. These contracts are usually focused on the legal issues involved in the transaction and not on the financial and accounting aspects of how the future compensation will be calculated. That is not to say the formula is not stipulated in the agreement, but rather that the formulas are often complex and the terminology used is ambiguous. In advance of a contract being executed, we use our knowledge of past disputes and accounting terminology to vet agreements that include elements of future compensation on behalf of our clients. Our forensic transaction services focus on ambiguous accounting terminology and calculations that may result in disputes at a later stage, and provide suggestions as to alternative wording and/or approaches to achieve the goals of the contracting parties. Alternative Dispute Resolution Disputes arising between business partners are unavoidable. As litigation can be costly, time consuming and in some jurisdictions subject to an uncertain outcome, there is a growing trend towards alternative approaches to dispute resolution, such as mediation, arbitration or determination. In the event that a contract leads to a dispute, we offer a range of services to assist organisations that have chosen the path of mediation or arbitration, including assistance in presenting complex accounting issues and assessing settlement offers. Our alternative dispute resolution services focus on supporting our clients in presenting the financial and accounting aspects of their case. Our expert determination services provide advice for resolving post-acquisition disputes and other matters sent to an expert referee for resolution, including formulating submissions to an expert and acting as the expert referee or determiner. Forensic Services 9

10 Dispute Advisory Services Dispute Advice Expert Witness Supporting Services Forensic Technology Corporate Intelligence Dispute Advice and Expert Witness Not all cases will be resolved or settled before the commencement of litigation. In the event that a case is to be put before a competent court or tribunal, an assessment of the value of the claim is usually required in the initial proceedings. After submission of such a claim, the claimant must support the value of the claim. The defendant usually refutes the value of the claim and often presents evidence to support lesser values. That evidence may be considered by the competent court or tribunal or it may be referred to an expert appointed by that body. Both the claimant and the defendant should be aware of the strength of their case, from both legal and accounting perspective, in order to be able to assess the merits of any settlement offer. We can help your legal team to formulate the legal arguments of the case by providing financial and accounting related input. This includes preparing reports for use in the dispute, giving evidence as an expert witness, and analysing and evaluating the other party s case or submissions. We also undertake quantification of damages where we calculate losses suffered by a party due to an event giving rise to a dispute. We also prepare assessments of the value of a business, shares or other assets for the purposes of dispute resolution. Such an assessment might involve intellectual property disputes where we help calculate losses suffered by the intellectual property owner and assess the value of the benefit to the infringer. These disputes may include underpayments of license and royalty fees, noncompliance of contractual terms and license verifications. Our advice is objective, clear and concise. Our professionals provide independent, objective advice in matters involving financial loss, and in matters of liability involving accounting and auditing issues. 10 Forensic Services

11 Supporting Services While these form an integral part of our own Forensic Services, we also provide services that will support our clients in managing their business. Forensic Technology Corporate Intelligence Our advice is objective, clear and concise. We offer forensic technology services that identify, preserve and analyse evidence. These services include document management, digital evidence recovery and data preservation. Corporate intelligence services include the researching of historical financial information, reputational issues, strengths, vulnerabilities and strategies of external individuals and organisations engaged in business dealings with our clients. Forensic Services KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved.

12 Contacts Jimmy Helm Partner Advisory T: E: jhelm@kpmg.com Michael Peer Partner Advisory T: E: mpeer@kpmg.com Gábor Cserháti Director T: E: Gabor.Cserhati@kpmg.hu kpmg.hu The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International KPMG Tanácsadó Kft., a Hungarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. Printed in Hungary.