Case Study: Deviations from expense reimbursement policy identified – recommendations enable public company to file Form 10-K on time
A publicly-traded company was in the process of preparing its annual Form 10-K filing. The controller noted deviations from adherence to the expense reimbursement policy. The company’s outside counsel contacted DGC after receiving a recommendation from the external auditor.
DGC targeted expenses that were at the highest level of risk for fraud. DGC conducted interviews, in conjunction with counsel, with the accounting and executive teams. In addition, DGC analyzed targeted transactions to assess their purpose and determine their compliance with the expense reimbursement policy.
DGC identified a limited number of deviations from the expense reimbursement policy. DGC quantified the financial impact of the deviations and provided recommendations to the company’s board of directors to strengthen the expense reimbursement policy and company’s internal control environment. This enabled the board of directors and external auditor to file the annual Form 10-K on time with the Securities and Exchange Commission.
For additional information about this or any related topics, contact Kimberley A. Train, CPA/ABV at 781-937-5112 or firstname.lastname@example.org. Kimberley is a Partner and leads the Forensic Accounting practice