How CFOs can assist independent investigators and not mess up the integrity of the results.
By Tracy Coenen, Contributing Editor at CFO.com
With the government’s increased focus on ferreting out corporate fraud, companies face a higher risk of gigantic defense costs, negative media reports, and substantial civil or criminal penalties. Cases involving bribery and corruption under the Foreign Corrupt Practices Act, for example, are costing companies their reputations and their profits.
It takes only one credible whistleblower with access to enough documentation to make a compelling case to a government agency to get the ball rolling. The saving grace, however, can be an aggressive compliance program, complete with thorough internal investigations of tips and red flags, plus swift and certain remediation.
We have previously discussed creating a process to identify a compliance problem that needs investigating and the assembly of an effective investigative team. We now move into the mechanics of conducting the investigation, ensuring quality control, and using the results.