
An automotive parts wholesaler started to experience problems in collecting receivables with major accounts and, at the same time, there were significant shortfalls in their inventory. Our forensic accountants were called in to investigate.
A detailed examination of the accounts and extensive interviewing of the staff revealed that a sales manager had arranged for bogus orders to be shipped, later deleting record of the shipment so that invoices were not raised. As a result of the "recorded orders", the sales manager received substantial commission and certain clients received free products. The manager was arrested and charged, and full recovery of losses made through the client's insurance.
