Background: A client engaged us to investigate their delivery team’s operations, suspecting product mishandling that led to financial losses. The aim was to uncover any discrepancies and suggest corrective actions.

Audit Approach:

1. Data Analysis:
   • Delivery and Sales Audit: Compared the average delivery times with order dates. Focused on identifying patterns of delay or inconsistencies in delivery schedules.
   • Cross-Verification with Customers: Conducted a detailed review of delivery logs against customer-reported delivery timelines.
2. Field Investigation:
   • Customer Interviews: We visited customer locations nationwide to directly validate delivery dates against company records.
   • Observational Audit: Assessed the logistical process on-site to identify deviations from standard procedures.

Findings:

• Irregularities in Delivery Patterns: One delivery executive manipulated orders by skimming a portion of the goods.
• Fraudulent Practices:
  • Collaborated with logistics drivers to divert part of the inventory to alternate locations.
  • Pocketed payments from the diverted goods, leaving the customer short-served and the company exposed to potential complaints and financial losses.

Outcome:

• Reported to Management: Presented a comprehensive report detailing:
  • The executive’s fraudulent activities.
  • Impact on the company’s finances and reputation.
  • Recommendations for immediate termination and legal proceedings.
• Preventive Recommendations:
  • Implement real-time delivery tracking using GPS-enabled systems.
  • Strengthen internal controls with periodic audits and surprise checks.
  • Develop a customer feedback loop to flag discrepancies promptly.

Conclusion: The forensic audit successfully exposed the fraudulent practices within the delivery team, enabling the client to take appropriate corrective actions. This case highlights the importance of rigorous oversight and robust systems to mitigate operational risks.