fraud investigation - eyfile/ey-sg... · [email protected]. kanny lee. executive director...

Fraud Investigation & Dispute Services

In today’s environment,

managing risk for the global

organization ismore important than ever as the risk of fraud and

business disputes can emerge

almost anywhere

Are you at risk?Your stakeholders and customers rely on you to anticipate risks and manage disputes. Your company may be exposed to severe fraud losses from financial statement manipulation, employee embezzlement, procurement fraud, sales kickbacks, conflicts of interest, bribery and corruption.

When suspicions of dishonesty or disagreements arise, you need to address them in a way that best suits your organization. That’s why some of the world’s largest companies and many of the best known law firms turn to EY.

How we can helpWith more than 400 dedicated professionals in our Fraud Investigation & Dispute Services (FIDS) practice in Asia-Pacific, we help companies investigate alleged fraud or misconduct, measure the financial implications of disputes and find ways for you to manage risk.

With experience across multiple industries and the global reach that today’s companies need, we work to give you the benefit of our broad sector experience, our deep subject matter knowledge and the latest insights from our work worldwide. We quickly and efficiently deploy professionals from the right multidisciplinary and culturally aligned teams to work with your clients and legal advisors.

Our professionals include Certified Public Accountants (CPAs), Certified Fraud Examiners (CFEs), forensic technology professionals, and former law enforcement officers. Whether you are facing whistleblower allegations, government inquiries, breach-of-contract claims or major litigation, you can turn to us for assistance.

We help companies investigate unusual financial activity, perform electronic discovery and review financial reports, all with the sensitivity and urgency you require. Our knowledge comes from a range of experiences dealing with matters of fraud, accounting malpractice, anti-corruption and regulatory compliance.

Determining the financial impact of business conflict is critical. Our skilled professionals are adept at evaluating the evidence and calculating damages or lost profits due to bankruptcy, transaction and contract disputes, and business interruption. And we provide witness testimony as necessary to explain our findings.

InvestigationWe assist our clients with factual investigation of alleged fraud or corruption perpetrated against corporate and government entities, including, but not limited to, vendor fraud, payables fraud and embezzlement.

We also assist with factual, often privileged, investigation of alleged corporate wrongdoing, including, but not limited to, investigation of alleged financial statement misrepresentations and violations of US Foreign Corrupt Practices Acts (FCPA), UK Bribery Act (UKBA) or other anti-corruption regulations.

Our investigation work includes forensic imaging of computers, data analytics, collection and analysis of data, interviews of individuals and review of documents.

Anti-bribery and anti-corruptionWe work with our clients to address concerns and issues regarding alleged breaches of local anti-bribery laws and global anti-corruption regulation and enforcement, including the FCPA and UKBA in Southeast Asia.

We have acted for external counsel on behalf of multinational clients with subsidiary operations in Southeast Asia.

Our findings have reached the highest levels of the US Department of Justice and the Securities and Exchange Commission.

Anti-fraudWe conduct broad assessments of our clients’ existing risk management processes and frameworks and help them establish leading practice anti-fraud programs.

We conduct risk assessments and compliance reviews to identify fraud risks for our clients and provide recommendations to assist them to improve the prevention and detection of fraud schemes.

We also assist clients with fraud awareness training for all levels ranging from employees to management and board.

Compliance assistanceWe assist our clients in assessing, improving and monitoring their compliance programs.

Our work includes compliance risk assessment, compliance program gap assessment and improvement recommendations, design implementation assistance for compliance process, deployment of governance, risk and compliance (GRC) technology, and data analytics and compliance monitoring.

Forensic technology and discovery servicesWe assist our clients in the preservation and collection of data by performing forensic imaging of data storage devices and our professionals can rapidly narrow the universe of electronic stored information (EIS).

Our data analytics professionals run specialized queries on large amounts of data to provide analysis of transactions and identify patterns that could indicate fraudulent or corrupt behavior.

Our electronic discovery services allow our clients to respond to data preservation requests and provide a host location for the storage of data in a regulatory action or dispute.

Dispute servicesWe help our clients in damage analysis and quantification (and, if needed, expert reports and testimony), in the context of breach-of-contract or intellectual property disputes.

We also serve as a neutral professional determiner, typically in a post-closing merger and acquisition dispute over purchase price adjustments related to the deal.

We assist our clients with analysis and documentation to support legal positions and negotiate settlements.

EY | Assurance | Tax | Transactions | Advisory

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

About EY’s Fraud Investigation & Dispute ServicesDealing with complex issues of fraud, regulatory compliance and business disputes can detract from efforts to succeed. Better management of fraud risk and compliance exposure is a critical business priority —no matter what the industry sector is. Our more than 400 fraud investigation and dispute professionals in Asia-Pacific region bring the analytical and technical skills needed to quickly and effectively conduct financial and other investigations and gather and analyze electronic evidence. Working closely with you and your legal advisors, we assemble the right multidisciplinary and culturally aligned team, and bring an objective approach and fresh perspective to challenging situations, wherever you are in the world. And because we understand that you need a tailored service as much as consistent methodologies, we work to give you the benefit of our broad sector experience, our deep subject matter knowledge and the latest insights from our work worldwide.

© 2017 Ernst & Young Advisory Pte. Ltd. All Rights Reserved.

APAC no. 12001082

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UEN 198905395E

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.

ey.com

Singapore contacts

Belinda TanPartnerFraud Investigation & Dispute ServicesErnst & Young Advisory Pte. Ltd.+65 6718 [email protected]

Reuben Khoo Asean Leader, Partner Fraud Investigation & Dispute ServicesErnst & Young Advisory Pte. Ltd.+65 6309 [email protected]

Saket BhartiaExecutive DirectorFraud Investigation & Dispute ServicesErnst & Young Advisory Pte. Ltd.+65 9825 [email protected]

Kanny LeeExecutive DirectorFraud Investigation & Dispute ServicesErnst & Young Advisory Pte. Ltd.+65 6309 [email protected]

Investigations

Fraud attacks your company’s integrity. From

white-collar crime and securities

fraud to employee theft and

deception,we help you find

the answers when questions arise

Do you have proficiency in fraud response plan?Stakeholders and boards expect company management to proficiently manage and respond to conflicts that disrupt regular business operations such as potential illegal acts, compliance violations and regulatory matters, which may involve:

• Fraud investigations

• Financial restatements

• Asset tracing and recovery

• Anti-money laundering

• US Foreign Corrupt Practices Act (FCPA), UK Bribery Act, and similar country laws investigations

• Office of Foreign Asset Control (OFAC) or sanctions investigations

The determination of the financial impact from potential fraud or wrongdoing is complex.

How we can helpEY can assist you in the following circumstances:

• A report of serious wrongdoing received through an organization’s (private or government) ethicshotline or other channel(s)

• External counsel engaged by a company to perform an investigation protected underattorney-client privilege

• Informal or official communication from a regulatory agency that may include inquiries,information requests or subpoenas

Our value propositionNavigating through the complexities of investigating business fraud or other potential wrongdoing, we provide workable options to reduce current financial or reputation impact and reduce risk of re-occurrence. Our teams consist of professionals who:

• Have extensive experience investigating corporate misconduct, conducting interviews, siftingthrough evidence and analyzing financial transactions

• Are skilled at capturing, evaluating and preserving evidence, including performing forensic imaging,electronic discovery, and sourcing and analyzing financial and other business records

• Offer recommendations for remediation to reduce reoccurrence

• Perform forensic data mining, predictive attribute models, transaction anomaly detection,computer usage reconstruction, deleted file recovery, event or activity logging and computerforensics, including mobile device forensics

Singapore contacts



Reuben KhooAsean Leader, Partner Fraud Investigation & Dispute ServicesErnst & Young Advisory Pte. Ltd.+65 6309 [email protected]

Whistleblower’s allegationWe were engaged by an entity in the telecommunications industry to conduct an investigation arising from a whistleblower’s allegations.

Our investigation identified various issues of fraud and misconduct by management, employees and third parties. Our data analytics professionals ran queries on large amounts of data to provide analysis of possible discrepancies or losses in relation to some equipment.

Misappropriation of company’s fundsA company discovered misappropriation of funds by one of their employees. We were engaged by the company to assist in quantifying the total amount of funds misappropriated and the breakdown in internal controls, which allowed the wrongdoing to perpetuate.

Our investigation involved computer forensic procedures and at the conclusion of the investigation, we assisted the company with their reporting to the relevant authorities.

Cross-border investigationWe were engaged by a listed entity to investigate questionable transactions involving related parties. Our work expanded to cover various countries in Asia.

Anomalies in financing transactionsWe were engaged by the audit committee of a company to investigate certain financing transactions with the company’s banks.

Our investigation procedures included forensic imaging of computers, interviews with individuals and detailed analysis of financing transactions. Our investigation assisted the audit committee in quantifying the financial impact of these financing transactions.

Fake documentsA financial services company was informed by a stock exchange that some of its customers had used fake documents for account opening.

We were engaged by the company to assist in reviewing all the supporting documents as well as suggesting improvements to its internal controls to prevent reoccurrence.

Questionable claimsWe were engaged by an affiliate of a public company to investigate questionable transactions involving duplication of construction-related claims. Our findings were reported to the group’s audit committee, and the case was subsequently referred to the relevant authorities.






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Our experience

Globalization requires companies

to become more familiar with the

major bribery and corruption statutes

around the world and the consequences

of violations, which can include financial penalties and imprisonment

Are you concerned about bribery and corruption?Navigating foreign markets amid increased global anti-corruption regulation and enforcement, including the US Foreign Corrupt Practice Act and the UK Bribery Act can be a concern for companies. Some of the key concerns include:

• Identifying and mitigating inherent corruption risk and cost of regulatory compliance monitoring

• Compliance programs at odds with local culture (gift-giving and entertainment)

• Monitoring effectiveness across different languages, legal environments and financial systems

• Prevalence of government-exposed customer bases such as health care systems and state-owned enterprises (SOEs)

• No materiality threshold

• Penalties such as millions of dollars in fines, debarment from government contracting and imprisonment

How we can helpPreventing, detecting and investigating bribery and corruption are a major compliance focus for many companies. We can assist you in the following circumstances if you are a company:

• In an industry with a high level of government interaction such as mining, oil and gas, telecommunications, financial services, life sciences and defense contractors

• In an industry subject to anti-bribery and anticorruption enforcement or scrutiny such as life sciences, retail, and oil and gas

• With reports of bribery and corruption activities through the ethics or whistleblowing hotline

• Targeting operations or significant sales growth, particularly in countries with higher perceived corruption risk

• Contemplating a new or existing acquisitions or joint-venture in countries with higher perceived corruption risk

• That regularly uses third parties such as agents, consultants and sales representatives

Anti-bribery and anti-corruption

ABAC investigationWe help companies investigate allegations of bribery and corruption and attempts to conceal such activity.

Our work ranges from isolated incidents involving few employees to more pervasive conduct involving management in multiple countries.

We can also simultaneously deploy several teams comprising our overseas counterparts and local professionals. The teams work with internal and external counsels and internal audit, and provide regular updates or report to senior executives and the company’s audit committee.

ABAC pre-acquisition due diligenceWe help companies to conduct ABAC pre-acquisition due diligence on its target company. The due diligence is designed to identify potential ABAC red flags in the target company.

We also provide recommendations to enhance the ABAC compliance program for the target company prior to the contract signing, which may include improvements to the internal controls and processes.

ABAC compliance assessmentWe conduct periodic ABAC compliance assessment, in particular for entities with previous acts that could have constituted an ABAC violation.

Our procedures allow the client to identify its high-risk areas and address these issues with proactive measures, including changes or enhancements to its internal controls to reduce potential risk of future ABAC violation.

We assess company operations, consultant and agency relationships, joint venture partnerships, cash transactions, marketing and sales practices and accounting records to identify potential violations and investigate, where necessary.

We also work closely with the client’s in-house counsel from various industries to identify and reduce potential ABAC red flags and risks.

We conducted ABAC compliance assessments for clients in multiple industries (such as, oil and gas and pharmaceuticals) across multiple jurisdictions within the Asia-Pacific region.





© 2017 Ernst & Young Advisory Pte. Ltd.All Rights Reserved.

APAC no. 12001082

ED None

UEN 198905395E


ey.com

Singapore contacts




Our value propositionWe have developed proprietary methodologies to address the bribery and corruption risks of our clients and their legal advisors. Through our global FIDS network, we can address a client’s investigative and compliance needs quickly and efficiently with trained professionals who speak the local language and know the culture. Our forensic technology professionals have developed anti-bribery and corruption analytics that distill financial and business data into dashboards to identify and focus on anomalies and red flags such as gifts and entertainment to potential government officials, and unusual or suspect recording of expenses or payments through off-shore jurisdictions.

Our experience

Compliance assistance

Leading compliance functions are evolving from

traditional “keep us out of trouble”

to performance-driven “make our business better”

mindsets – andare enabling sustainable compliance

How effective is your compliance program? Board of directors and corporate executives have increasing demand on evidences of whether their corporate compliance infrastructures, processes and controls are effective, integrated, efficiently risk-aligned and embedded throughout a complex, global organization.

Effective and cost-efficient management of legal, regulatory and reputational obligations is a critical element of corporate governance and enterprise risk management. Some of the trends we see include:

• Companies and their officers, directors and employees face risks of prosecution, regulatoryfines and civil lawsuits for violation of anti-corruption, antitrust, environment protection,export and similar laws

• Companies also face reputational risks for product safety, environmental, data privacyand fraud violations

• For companies in regulated industries like health care, life sciences, financial services andenergy, and companies that provide services to government customers, compliance is acore operational competency

• Companies with robust compliance programs are better able to expand into new markets andenter into new business relationships, based on risk assessment and due diligence

• Prosecutors and regulators have defined the elements of an effective compliance program,and provide incentives for implementation of such programs and for voluntary disclosure ofviolations and cooperation in investigations

• Senior management and board of directors are held accountable for effectivecompliance programs

How we can helpWe can assist you in the following circumstances:

• Events of non-compliance in the company or the industry

• New or emerging enforcement trends and actions in the industry or key markets

• Changes in company risk profile due to changes in business strategy, countries of operation,supply chain or sales channels

• Audit committee inquiry or request for compliance program assessment

• Assessments of specific compliance risks, for example, fraud or corruption

Singapore contacts




Our value propositionWe have developed proprietary methodologies to address compliance risks within the larger context of corporate governance and management of strategic, operational and financial risk.

We work with global subject matter resources from various EY services to provide broad process improvement, technology deployment, auditing, investigation and data analytics solutions.

• Our professionals have global compliance experience – from formernational regulators and chief compliance officers, to industry-experiencedcompliance practitioners

• Our professionals in key industry sectors help clients accelerate the identification and mitigation of compliance risks specific to the industry segments in which theyconduct business

Our experienceWe provided integrated and effective corporate governance and risk management to companies. This includes:

• Conducting an independent assessment of the compliance framework for the auditcommittee of a highly regulated and global client

• Developing a global anti-bribery and compliance framework for a largemultinational company having operations in 23 countries

• Developing a comprehensive fraud and incident response framework for aglobal manufacturer

• Conducting a compliance assessment at the newly acquired division of a global company

• Performing a compliance gap assessment and recommended areas ofimprovement based on industry knowledge and best practices for a globalpharmaceutical company for the Asia-Pacific region






APAC no. 12001082

ED None

UEN 198905395E


ey.com

Forensic data analytics

From complex general ledger

accounting systems to

network security and social media,

data is the all encompassing

backbone of corporates

Are you deriving insights from your data?Companies are generating an ever-increasing amount of data, from structured (transactional) data in financial and ERP systems to unstructured (text based) emails and electronic documents.

Companies are under increasing pressure, from both regulators and boards of directors, to demonstrate an effective anti-fraud, bribery and corruption compliance program as well as investigate allegations of fraud and misconduct in a timely and thorough manner.

Beyond assessing policies and controls, compliance officers, internal auditors and general counsel offices need a way to efficiently look at transaction and communication details and identify meaningful trends, anomalies and patterns in order to properly assess business operations, detect fraud, bribery or other potential wrongdoing.

Companies require more cross referential insights using a variety of statistical and visual techniques from modelling, machine learning, and data mining that analyze current and historical facts to drive useful insights, for example, in trader behavior analytics, insurance agent and claims analytics.

How we can helpOur Forensic Data Analytics (FDA) combines the extensive use of big data and statistical and qualitative analysis, as well as explanatory and predictive models, to guide and identify issues and areas that warrant further review. Our fact-based evidence drives actionable business decisions, focuses investigative efforts where it matters and improves outcomes.

Forensic data analytics services






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ey.com

Singapore contacts




Our methodology

Our approach to forensic data analytics incorporates targeted model-based mining and visual analytics tools that allow the data to “speak for itself”. When deployed over large data sets, our analytics can be a powerful tool to identify large and unusual transactions or anomalies derived from the multidimensional attributes within your data.

Our experience

“Know Your Agent” dashboardWe were engaged by a multinational insurance company to develop a forensic data analytics program, which we name “Know Your Agent” (KYA). KYA provides predictive analytics, statistics, mathematics, linguistics and the experience of insurance industry professionals to monitor and detect potential agent fraud or suspicious behavioral patterns.

Analytics reporting and data visualization

Sample accounts payable stratification analysis

Sample social media analysis dashboard

Cybercrime diagnostics and incident response

Cybercrime is increasingly

becoming the single biggest existential

threat of the modern world

Has your computer system been compromised?Cybercrime is increasingly going undetected, as organizations face persistent and sophisticated threats from attackers. Criminals are targeting commercially sensitive information, intellectual property and critical network infrastructure. These threats may come from attackers both within and outside your organization.

Some of these may seem harmless and others far more damaging and malicious in their intent. Nevertheless, any intrusion into your computer systems can lead to regulatory fines, operational expense, reputational damage and loss of competitive advantage. No organization wishes for its closely guarded secrets to be traded or leaked into the open.

Many vendors are creating products to help counter the threat. Companies are deploying sophisticated virus detection tools, intrusion detection systems and data leakage prevention appliances. Despite this armament of technology, high-profile and damaging breaches continue to occur.

Cyber threats were once considered an issue for the information technology (IT) department alone. However, increasingly, such threats are being discussed in the boardroom, as the authorities hold companies and their leadership accountable for the security of customer and employee data.

A new challengeOur experience shows that companies understand the need for effective cybersecurity, but are aware that such controls and technologies alone cannot entirely eliminate the threat. Often, network security appliances are put in place to detect intrusions and monitor data leakage. These are used to fend off widely known threats, but are not in themselves a viable defense against a motivated attacker.

IT managers can quickly find themselves overwhelmed with vast amounts of security log data that is never cross–matched or effectively reviewed and prioritized. There are also very few systems that can look beneath the surface of an organization’s IT landscape to uncover the forensic tracks that remain obscured to an attacker.

When breaches are discovered, they are often remediated immediately without executing a full investigation into the attack. This can leave other parts of the network compromised and exposed, as the full extent of the breach is never uncovered. What is clear is that IT and risk personnel need to not only consider how to protect their IT systems from cybercriminals, but also understand how to determine whether attackers have slipped past the security defenses, and what can be done if they have.

We believe that a proactive forensic approach will help your organization respond to complex incidents that may have breached your security. This will help reduce the amount of time a network is exposed, mitigate the resulting damage or data loss and increase the probability of catching the perpetrator.

Singapore contacts



Our approachOur cybercrime investigation teams comprises IT forensic and security professionals working closely with experienced corporate investigators. We are often asked to investigate and respond to network breach incidents, but increasingly we are advising clients to take a more proactive approach.

It is typical to assume that your IT network has not been breached and to focus your efforts on keeping out attackers. A more effective approach is to take a different starting position. Our teams will assume that you have already been targeted and will focus on investigating your IT estate for any evidence of data theft or intrusion.

Our services We have developed an approach to sampling networks for indicators that a breach may have occurred. This is in contrast to a traditional IT audit or a vulnerability test, which focuses on potential weaknesses to common, well-publicized attacks. Our cybercrime diagnostic focuses on those targeted attacks that are designed to slip past your defenses.

Initially, we will review your network architecture and take samples of forensic artifacts where we know breach indicators can reside. Typically, such artifacts include a sample of network traffic, server and appliance logs and a selection of forensic artifacts from key computer systems or servers.

This data capture process is tailored to reduce the support required by your busy IT teams and is not likely to have a significant impact on the performance of your infrastructure. Following collection, we use a variety of automated forensic tests, combined with data mining technologies and the experience of our staff, to highlight indicators of potentially suspicious activity.

What can we find? The initial analysis will allow us to identify further work streams for additional investigation. For example, these indicators can include:

• Evidence of the use of remote access software from unauthorized sources

• Indicators of the presence of active malware

• Persistent connections to other countries or unauthorized entities

• “Back channel” data flow into or out of your organization

• Indicators of data harvesting by employees or leavers

• Unauthorized system and data access

In addition to these indicators, we often uncover other findings that relate to your IT security or information governance regime, including:

• Limitations of existing security policies

• Storage of confidential data in unprotected areas (webmail, cloud, etc.)

• Inappropriate use of IT resources

• Misconfigured network devices

• Installation of unauthorized software or hardware

Our analysis is data–driven. Our approach scrutinizes any indicators that are suspicious, rather than being restricted to a narrow set of rules.






APAC no. 12001082

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ey.com


Discovery services

Effective handling of your electronic

documents is critical to the

success of your investigation

or dispute

Is data challenging you? Huge amounts of unstructured electronic evidence present significant challenges for businesses, in particular, getting to the relevant information quickly and cost-effectively. Some of the challenges include:

• Large, complex disputes and investigations involving volumes of electronic documents,email, paper and other forms of data

• Geographically dispersed collections and preservation of data

• High-pressure, time-sensitive, technologically complex situations

• Heightened regulatory scrutiny leading to increased document preservation, collection,review and production requirements

• Certain country prohibiting the transfer of data outside of the country for processand review

How we can helpEY can assist you in the following circumstances:

• External counsel engaged by a company to respond to or conduct formal discovery andprotected under attorney client privilege

• Audit committee, board of directors or other internal investigations that require innovationand cost containment

• Companies in receipt of informal or official communications from a regulatory agency whichmay include inquiries, information requests and subpoenas

• Clients involved in M&A, a joint venture or bankruptcy, where the company lacks eithertechnical skills or resources to achieve the desired result in the necessary timeframe

Our value propositionOur Discovery services offers rapidly deployable professional services using innovative technology on a global basis covering the entire electronic discovery life cycle. Our teams around the world are experienced in dealing with local regulatory discovery environments. Our experience has been forged through being involved with high-profile investigations, major litigations and complex disputes. We stand out by applying our distinct knowledge of critical business situations in a variety of vertical markets.

Our services are designed to support the effective management and defensibility of the discovery process and are independent of any service provider, system or software.

Our Technology-Assisted Review (TAR) methodology leverages and extends professional judgment through the use of technology, linguistics, analytics and statistics.

Singapore contacts



Our experienceWe have extensive experience in helping our clients with their forensic technology matters.




About EY’s Fraud Investigation & Dispute ServicesDealing with complex issues of fraud, regulatory compliance and business disputes can detract from efforts to succeed. Better management of fraud risk and compliance exposure is a critical business priority —no matter what the industry sector is. Our more 400 fraud investigation and dispute professionals in Asia-Pacific region bring the analytical and technical skills needed to quickly and effectively conduct financial and other investigations and gather and analyze electronic evidence. Working closely with you and your legal advisors, we assemble the right multidisciplinary and culturally aligned team, and bring an objective approach and fresh perspective to challenging situations, wherever you are in the world. And because we understand that you need a tailored service as much as consistent methodologies, we work to give you the benefit of our broad sector experience, our deep subject matter knowledge and the latest insights from our work worldwide.


APAC no. 12001082

ED None

UEN 198905395E


ey.com


Global evidence reviewFor one of our clients, we collected data from each location in five countries for an internal investigation of allegations of vendor fraud and inappropriate revenue recognition. We then identified the people of interest, preserved all electronic data, processed it and loaded it into a centralized system that allowed for simultaneous review by investigators in the US, Hong Kong, Tokyo, Seoul and Taipei. We were able to gather evidence so that the company could take action against those involved.

Documents falsification investigationOur client, a multinational online advertising company, reported an internal misconduct, which affected their brand image. It appeared that an employee was creating multiple fraudulent invoices in order to inflate his or her bonus.

We preserved the suspect’s device and conducted a thorough forensic analysis. In addition, we performed comparison of information from client’s database to identify the discrepancies of actual transactions and the “fake” invoice.

We identified a number of these invoices containing false signature. Our work product assisted our client to escalate the incident to the law enforcement and to take legal action.

E-discovery servicesOur client, a European multinational corporation, was faced with multiple overlapping data preservation requirements stemming from several US legal and regulatory issues. These issues included an SEC investigation, several state regulatory investigations and class action litigation.

We developed and monitored the electronic data preservation process for email, electronic documents, and financial data. Furthermore, we advised the client on implementation of the data preservation plan for multiple entities in more than 50 countries.

Our global teams of professionals and scalable systems allowed us to efficiently monitor the process of preserving information and, when necessary due to local laws or security concerns, to facilitate local review and analysis of that information.

Dispute services

When a company loses something

of value, it is vital to protect

its interestsand establish the extent of

its losses

Are you prepared for a dispute?Business disputes are on the rise and can happen anywhere across your global operation. Disputes can be costly and adversely affect your internal operations, as well as stakeholders’ views of your company. Some of the trends we see include:

1.Continuing economic uncertainty is leading to increasing levels of contractual non-performance and corporate failure

2.The number and value of disputes continue to rise, resulting in damage to reputation and relationships, placing a huge burden on many businesses.

3.Failed M&A, private equity transactions, insolvencies and restructurings are on the rise

4.Increased regulation is a source of disputes

5.The use of alternate dispute forums (particularly arbitration, mediation and expert determination) is increasing

Determining financial consequence is fundamental to making informed decisions in addressing or preventing business conflicts. Understanding and supporting damages, as well as establishing causation, are pre-requisites for resolving disputes. And dispute resolution requires professionals experienced in the legal process.

How we can helpWorking with you and your counsel, we can assist in developing calculations that may help you develop your litigation strategies. We assist in disputes at courts or at arbitrations, related to:

• Breach of contract

• M&A disputes

• Intellectual property infringement

• Construction disputes

• Compliance with regulatory requirements

• Dealer and franchise termination

• Joint ventures

• Product liability

• Securities and shareholder issues

• Torts and other class-action issues






APAC no. 12001082

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Singapore contacts




Claim disputeAn entity in the telecommunications industry was saddled with a dispute over excessive claims for services it rendered.

We assisted the entity by providing forensic accounting services to assess the basis of their claim calculations.

For the claim assessment and calculations, we applied data analytics and computer forensic procedures to support the analyses.

Joint ventureWe were engaged by the joint venture collaborator of a Singapore-based company to investigate project costs overrun for their plants in various countries in Asia, as well as related-party transactions.

Our investigation included computer forensic procedures, interviews with company personnel and detailed analysis of company documents. Our findings were subsequently used by the joint venture partner for dispute settlement purposes.

Loss of profits claimWe were appointed by a global company to provide an opinion on the quantum of loss of profits suffered by the claimant as a direct consequence of breach of contract by our client.

The claimant filed for a significant amount for the loss of profit, which was duly supported with their own expert report.

We prepared damages analysis and critiques of the claimant’s expert report. Our teams comprised forensic and valuation professionals from our offices in Asia.

Court proceedingA company alleged several of its employees of diversion of business. Recognizing that certain pertinent documents in support of the anticipated dispute for loss of profit may be destroyed, an ex-parte court injunction was filed to secure the documents.

Working alongside the client’s legal counsel, we offered our experience and advice to facilitate the smooth execution of the injunction and the subsequent dispute.

Our value propositionOur professionals have provided written and oral expert testimony in relation to a wide variety of disputes involving accounting matters. Our deep experience and technical knowledge can objectively help you to:

• Provide an early assessment of the quantum of a problem so as to develop astrategy for dealing with it

• Critique or rebut amounts of legal claims by other parties

• Negotiate favorable settlements that maintain investor confidence andcorporate reputation

• Provide objective, sound analysis to support legal positions or claims

• Obtain appropriate recovery of economic damages or disputed amounts

Our experience

The DOJ’s and SEC’s FCPA

enforcement actions

demonstrate that third parties

including agents, consultants, and distributors are commonly used

to conceal the payment of bribes to foreign officials

in international business

transactions

Are you aware of third-party risks?The commercial challenges of conducting business in Southeast Asia are compounded as companies are often reliant on third parties. Third parties include vendors, suppliers, distributors, agents or joint venture partners. While they can often be important to business success, these third parties can expose multinational corporations and local companies to significant risks.

Despite the increasing emphasis of local and international bodies on regulating third-party behavior, monitoring fraud, bribery and corruption risks in third parties is still underdeveloped in some businesses.

Those with existing due diligence programs are finding they have not kept up with the increased global risks of third-party vendors, particularly in areas of bribery and corruption — leaving many companies to wonder what constitutes a reasonable due diligence program and how much research and documentation would be enough.

Global corporations and their audit committees are taking a closer look at how they manage and conduct their dealings with third parties, specifically due diligence around vendor, distributor, joint venture and customer organization.

Weak systems and control of third parties are an area of vulnerability that require more focused effort from companies in order to reduce the risk of exposing themselves to anti-bribery/anti-corruption (ABAC) enforcement actions. Effort needs to be placed on third-party due diligence, forensic data analytics, and frequent compliance audits as they form the basis of a strong monitoring system for third-party relationships.

How we can helpWe can assist you in the following circumstances:

• You regularly use third parties such as distributors, agents, sales representatives and consultants

• You have significant global sourcing of materials and extensive supply chains

• Your operations rely on a limited supplier pool due to complex products, regulated products orvendor capability

• You are in an industry with a high level of government interaction such as mining, oil and gas,telecommunications, financial services, life sciences and automotive

• You are contemplating acquisitions or joint-ventures and will inherit the target’s third-party relationships

Third-party due diligence

Singapore contacts







About EY’s Fraud Investigation & Dispute ServicesDealing with complex issues of fraud, regulatory compliance and business disputes can detract from efforts to succeed. Better management of fraud risk and compliance exposure is a critical business priority —no matter what the industry sector is. Our more than 400 fraud investigation and dispute professionals in Asia-Pacific region bring the analytical and technical skills needed to quickly and effectively conduct financial and other investigations and gather and analyze electronic evidence. Working closely with you and your legal advisors, we assemble the right multidisciplinary and culturally aligned team, and bring an objective approach and fresh perspective to challenging situations, wherever you are in the world. And because e understand that you need a tailored service as much as consistent methodologies, we work to give you the benefit of our broad sector experience, our deep subject matter knowledge and the latest insights from our work worldwide.


APAC no. 12001082

ED None

UEN 198905395E


ey.com

Our value propositionOur risk-based approach addresses third-party concerns by developing a list of attributes to segregate the vendor population into high, medium, and low risk. We can employ our data analytics tools such as our anti-bribery and corruption analytics and transaction risk rankings to assist in this process.

Our structured methodology is based on many years of experience providing anti-corruption and anti-bribery due diligence and compliance audit services to leading companies. We provide intelligence, not just information, for management decisions.

Using open source information, we develop reports that address:

• Background, reputation and ethical track record

• Market reputation and credentials

• Business history, activities and operations

• Suspected involvement in bribery or corruption

• Allegations of illegal or unethical business practices

• Associations or relationships of potential concern

• Regulatory and litigation history

Our web-based technology platform is a globally accessible program management tool that helps executives centrally coordinate the complex diligence process. It helps to manage third-party applications, background diligence results, risk ratings, approvals, compliance confirmations and contracts in a single repository. It also can be customized to guide users through a standard decision tree when evaluating risk factors in diligence. The result is an interactive decision management tool, which also serves as a searchable archive of your diligence activity.

Our experienceIntermediaries due diligenceWe were engaged by a multinational pharmaceutical company to perform due diligence procedures including background and business intelligence checks, contract review, and high-level transaction review.

After a review of the information obtained from all sources, we provided rating on each intermediary with a preliminary risk category and provided suggestions on how to proceed with each risk category.

We completed the third party due diligence on intermediaries, which ultimately resolved the potential law enforcement action.

ABAC due diligenceWe supported a multinational manufacturing company in the development and implementation of an anti-bribery and corruption program globally, particularly in the management of the third party background due diligence process.

We developed a risk assessment tool to assist in the identification of high-risk third parties and markets based on the background check requests received and red flags identified from background check results.

We assisted in developing a streamlined approach for processing and managing third party requests, reducing the effort and manual input required.

We provided due diligence reports that helped the client assess third parties that were potentially at risk of being connected to improper activities.

Greater ChinaEmmanuel VignalPartnerFraud Investigation & Dispute ServicesErnst & Young (China) Advisory Ltd. +86 21 2228 [email protected]

Singapore Belinda TanPartnerFraud Investigation & Dispute ServicesErnst & Young Advisory Pte. Ltd.+65 6718 [email protected]

PhilippinesRoderick M. VegaPartnerFraud Investigation & Dispute ServicesSyCip Gorres Velayo & Co.+63 2 891 [email protected]

Sri LankaAveril LudowykePartnerFraud Investigation & Dispute ServicesErnst & Young+94 11 246 [email protected]

An integrated team across Asia-Pacific

Asia-PacificChris FordhamPartner Fraud Investigation & Dispute ServicesErnst & Young Advisory Services Ltd.+852 2846 9008 [email protected]

AseanReuben KhooPartner Fraud Investigation & Dispute ServicesErnst & Young Advisory Pte. Ltd.+65 6309 [email protected]

IndonesiaStevanus A. SianturiPartnerFraud Investigation & Dispute ServicesPT Ernst & Young Indonesia+62 21 5289 [email protected]

VietnamSaman W. BandaraPartnerFraud Investigation & Dispute ServicesErnst & Young Vietnam Ltd.+84 4 3831 [email protected]

OceaniaRob LockePartnerFraud Investigation & Dispute ServicesErnst & Young Services Pty. Ltd.+61 2 8295 [email protected]

Malaysia Wan Cheak LimPartnerFraud Investigation & Dispute ServicesErnst & Young Advisory Services Sdn. Bhd. +6 03 7495 [email protected]

ThailandWilaiporn IttiwiroonPartnerFraud Investigation & Dispute ServicesEY Corporate Services Ltd.+662 264 [email protected]

Contacts