Purchase department in an organisation plays a vital role and it has to be handled honestly in the interest of the company. In an instant case, HR department observed that a certain officer of the purchase department was

Forensic investigation is the utilization of specialized investigative skills in carrying out an inquiry conducted in such a manner that the outcome will have an application in a court of law or in legal proceedings. The person to whom forensic audit has been entrusted should follow some methods by which he will be in a position to assert the case properly. Once the case has been handed over to him, he should analyze data which is available and create a hypothesis based on such data and test the hypothesis. In the present case, there are more avenues available to pin point the culprit. They are: Data collection from IT Department: Email backups, company mobile devices as per the company policy and applicable law, electronic data from the computer device of the suspect. Paper based Data collection: Suppliers documentation since pre-vendor creation stage, quotes, bids, invoices, payments, delivery acknowledgements, revisions to contracts, etc. for the alleged suspects tenure with the company. Identification of significant increase in business through statistical analysis: Significant increase indicate most likely vendors who could have received business by paying kickbacks. Reviewing transactions thoroughly including bidding documents, order placements, contractual agreements, per unit prices, quality of goods and services, etc. Background search on suspect vendors for their existence, location, publicly available financial information via MCA or Financial database software's like Prowess or Capitalline, litigations against them, ownership structure, and overall market reputation. Background search on the suspected procurement officer about his reputation in the department, increase in his assets, changes in his lifestyle, etc. If significant indicators point towards fraud by the employee, asset trace investigation can be conducted to help recover the loss. From data analytics, identification of vendors whose business has suddenly decreased or were removed from the approved list during his tenure needs to be identified. Informal discussions and discrete inquires can be made with them. It is very likely that concrete information can come from such disgruntled vendors. Combined analysis of data analytics, background checks, document reviews, discrete enquiries with vendors no longer being favored will give a good understanding of situation as to what is going on and who is involved. Enquire the employees of the purchase department about the concerned officer about the various visits of the vendor receiving low order vis-à-vis business model of the organisation. Market Intelligence is one of the techniques that we use in vendor related frauds. Wherein cover agent will visit to the suspected persons residence area to get an understanding his lifestyle, discreetly enquire about him with the few people in the area etc. A detailed enquiry as to whether the concerned officer followed the purchase policy of the department like competitive bidding etc. A conclusive analysis on the facts and evidence collected so that it can be used either in the court of law or in legal proceedings.