Expense Understatement Investigation

Table of Contents

Situation

A multinational organization identified potential expense understatement issues impacting financial reporting, requiring a comprehensive cross-border fraud investigation.

SFG Role

SFG led and executed the end-to-end investigation, coordinating efforts across jurisdictions and serving as the primary liaison between U.S. and Mexico-based stakeholders.

Approach

  • Conducted an eight-month, multi-location investigation across domestic and international offices
  • Performed over 50 interviews with key personnel and relevant parties
  • Analyzed financial documentation and executed data mining procedures to identify irregularities
  • Coordinated field teams and managed investigative workflows across jurisdictions
  • Acted as intermediary between Mexico and U.S. entities to align findings and communication
  • Reported findings and observations directly to the Vice President of Internal Audit and CFO

Outcome

The investigation resulted in a $100 million US GAAP adjustment, providing clarity on financial misstatements and enabling leadership to take corrective and governance actions.

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