Assurance Plus+

Assurance Plus+ Protecting your business from financial crime and reputational harm

Common Misconceptions Fraudsters usually target larger businesses rather than smaller businesses Fraud is a victimless crime Small amounts of financial crime for a business has little impact Financial crime requires a high degree of skill Banks or insurers pay for all financial crime losses Information on social media will not be used by fraudsters If a company is on Companies House, then it must be legitimate www.dains.com

Financial Crime – At What Cost? Fraud is the most reported crime in the The Annual Fraud Indicator identifies the cost of United Kingdom fraud to the UK Economy and was created as a Invoice fraud cost SME’s £9bn (ICAEW) benchmark for year on year specific sector fraud 96% of fraud cases reported to the Police analysis by the UK Fraud Costs Measurement unsolved (Which Money) Committee (UKFCMC). Company directors twice as likely to be I.D theft victims (CIFAS) The results show a staggering amount of money Only 1 in 50 fraud cases is reported (BDO) that is lost by businesses throughout the UK. Cyber fraud losses of £190,000 per day (BBC) 55% of fraud has a cyber element (ONS) www.dains.com

Examples of Financial Crime Fraud - Where deceit is used to gain a dishonest advantage, often financial, over another person. Cyber Crime - any criminal act utilising computers and networks to commit traditional financial crimes. Theft - Dishonestly appropriates property belonging to another, with the intention to permanently deprive the other of it. Bribery - Giving or receiving a financial, or other advantage in connection with the improper performance of a position of trust, or a function that is expected to be performed impartially or in good faith. Tax Evasion - Illegally hiding activities from HMRC to avoid the payment of taxes owed. Money Laundering - The process of making illegally gained proceeds appear legal. www.dains.com

Criminals Will Target Your Vulnerabilities Financial crime can occur within any business, regardless of size or the nature of the business Criminals do not care what impact financial crime has on your business, the supply chain or your customers Financial crime is not victimless, the impact on victims can be substantial Maintaining a zero tolerance approach to financial crime will reduce the likelihood of your business being a victim Protect your business, finances and reputation with Assurance Plus+ www.dains.com

Impact Of Financial Crime Financial loss Reputational damage Failure in customer, supply chain and market confidence Loss of valuable management time Adverse morale resulting in increased employee absence and turnover Regulatory/Professional body investigations Employment tribunal Civil litigation Investigation costs Increase of insurance premiums www.dains.com

External Audit & Assurance Plus+ External Audit Assurance Plus+ Recipients Shareholders or Members Flexible Objectives Add credibility and reliability to To protect the business from financial crime and Coverage statutory financial statements from the reputational risk. Identifies exposure to financial crime organisation to its shareholders by risk. Clear objectives to assess and address financial Timing & giving an opinion on their truth and crime risks. Provide a risk response with frequency fairness recommendations for improvement, allocation of Focus responsibilities for revised systems, controls, processes Status & and procedures authority Statutory financial statements and Systems, controls, processes and procedures. The related disclosures bespoke financial crime risk assessment is assessed against high risk areas of the business, typically, HR, payroll, procurement, accounts, sales, and purchasing Project(s) tied into year end financial Convenient for the business, can be undertaken at any reporting cycle, focused on objective time of audit opinion Mainly historical with a review of Elements of historical, but with the focus on future and forecasts and future performance to immediate improvements assess on a ongoing concern basis Statutory and regulatory framework Focus on business financial crime risk reduction. Protecting the business from adverse reputation www.dains.com

Solution Driven We recognise the approach to financial crime must be proportionate to the size and nature of a business. Whilst there is no ‘one-size fits all’, or blanket approach to understanding a businesses financial crime risks, we will spend time understanding your operating environment and work with you to produce an effective and preventative financial crime risk management programme. www.dains.com

How We Can Help Assurance Plus+ is designed to provide anti-financial crime solutions to assist in protecting your reputation and finances Our interactions with your board, senior management and employees, whether in facilitated risk workshops, the undertaking of financial crime risk assessments or providing financial crime awareness sessions, assists us in getting to know your business Assurance Plus+ bespoke reports include our findings where we identify best practice and where improvement is required, and recommendations to corroborate your existing controls, system, processes and procedures www.dains.com

Delivery Partner Allan has 15 years of senior management and leadership experience in a career of 25 years’ within anti-financial crime. Allan provides support and advice to clients relating to prevention, detection and deterrence programmes, to reduce financial loss and reputational damage, and where financial crime has occurred, appropriate and lawful investigation services to adhere to civil, regulatory and or criminal legislation. Allan has operated in all sectors, from owner managed businesses to international corporates, and has operated on client assignments outside of the UK in Afghanistan, Pakistan, Sierra Leone, Tanzania, Malawi, Kenya, UAE, Thailand, Turkey, Greece, Belgium, France, Germany, Italy, Sweden and Norway. Allan Maund Certified Fraud Examiner Accredited Counter Fraud Manager Deputy Money Laundering Reporting Officer ACAS (HR) trained investigator www.dains.com