Forensic investigation is an independent investigation that combines knowledge and experience of audit, valuation, legal and judicial procedures, as well as management psychology and IT-support.
Forensic service line includes the following services:
- financial and economic analysis
- expert economic analysis and valuation
- expert tax analysis
- technological and price audit, analysis of investment plans and financial models
- corporate intelligence and fact finding
- forensic inquiry, assistance and representation within the framework of litigation, including international legal disputes
- mediation in dispute settlements
We apply best global practices based on international and Russian law, including:
- United Kingdom Bribery Act
- US Foreign Corrupt Practices Act,
- RF laws: "On Anti-Corruption Enforcement" and "Concerning the Counteraction of the Legitimization (Laundering) of the Proceeds of Crime and the Financing of Terrorism".
Appraisal for insurance dispute settlements
Baker Tilly Russia performed a number of appraisals within the framework of settlements of insurance disputes. Subject to appraisal were asset portfolios of such industrial and infrastructure facilities as:
• Natural gas liquid plant damaged by an explosion (insurance claim in excess of RUR 600 mln)
• Petrochemical plant damaged by an explosion (insurance claim in excess of RUR 100 mln)
• Railroad tracks and bridges damaged by an earthquake (insurance claim in excess of RUR 400 mln)
Within the framework of appraisal procedures our specialists applied cost estimate analysis, as well as methods of project-based and market based comparables. Specific to such appraisals were the difficulty of identifying damaged equipment and the need to involve specialists in construction analysis and project design.
Independent expert review of performance of state contracts by a contractor
We were engaged by a large state enterprise (Enterprise A) to perform an independent expert review of the counteragent's performance under a number of state contracts. Enterprise A intended to use results of such review in court within the framework of litigation against a dishonest contractor. Enterprise A concluded an agreement with Company B for the supply and supervised installation of specialized equipment, primarily of foreign origin.
At year-end a representative of Enterprise A signed a transfer-and-acceptance act for all works under the contract based on a guarantee from Company B promising to fulfill all contractual obligations at the beginning of the next year. The said contractual obligations were not performed and an investigation was launched into the fact of abuse of office on the part of the said representative of Enterprise A.
Within the framework of our assignment we performed an itemized inventory and photographic evidence taking for all supplied equipment, confirmed the lack of completed installation for certain items, interviewed technical specialists of the enterprise and analyzed security check point data in order to ascertain the supply logistics. In addition, we were able to confirm that the undersupplied specialized equipment in fact had made it through the customs and was sitting in a warehouse of one of intermediary companies which agreed to provide us with its commentaries on the issue.
The assignment yielded detailed expert opinions which were tendered in evidence by the Plaintiff.
Cost audit of prices
Representatives of a gold mining company approached us with a request to perform cost audit of prices for the previous reporting period, as well as of financial model. Such audit was necessary within the framework of negotiations with a big Russian commercial bank that had been a creditor of this company for many years.
The need to restructure the loan forced the bank to strengthen control over expenses of the company by way of performing an independent cost audit in order to verify correspondence of procurement prices of the company to the market level of prices. Based on audit results Baker Tilly Russia identified a number of suspicious counteragents as well as instances of overcharges on certain expense items. In addition, at the bank's request we performed a detailed analysis of the financial model provided to the bank by the company in order to substantiate the proposed loan repayment schedule.
The financial model analysis included a review of methodological and technical correctness of calculations, testing key forecast assumptions based on available market information, assessment of materiality level of variances between the financial model and market data, as well as drawing up a general conclusion on the degree of feasibility of forecasts provided by the company. The results of our work were used by the bank as the basis for making decision on terms and conditions of loan restructuring.
Review of a Russian subsidiary of a large international company for compliance with the U.S. legislative requirements
We were engaged by a large international company (Company A) active in the sphere of ecological solutions for business to conduct an expert review of its Russian subsidiary (Company B) for compliance of the subsidiary's activity with the requirements of the U.S Foreign Corrupt Practices Act.
Such review was conducted as a preventive step to avoid possible claims against Company A from the U.S. regulatory authorities. The performed review enabled Company A to identify and eliminate all violations of FCPA.
Risk comes from not knowing what you’re doing.
Remember There’s No Such Thing As An Unrealistic Goal – Just Unrealistic Time Frames.
If you keep your eye on the profit, you’re going to skimp on the product. But if you focus on making really great products, then the profits will follow.