Intelysis was retained to conduct a fraud review, which revealed a lack of separation of duties and insufficient oversight for the payroll administrator. The review continued and it was further discovered that the payroll verification system included a check system to ensure that the employee was legally entitled to work in the USA. A more detailed look at individual employee accounts revealed that one form of proof of employability accepted by the company was a state prison inmate card. Needless to say whilst this did meet the requirements of the test, it raised a host of other issues and by the time the review was complete, the company had completely revamped both their hiring policy and their payroll systems and was much better protected against fraud and internal theft.
A mid-sized Oil and Gas company operating out of Texas was involved in extensive litigation, and during the process, a number of key areas of the business were identified as having potential for abuse or fraud. The key area of concern was the payroll system where it was believed there was significant risk of manipulation or fraud.
