Creating values through transparency

FRAUD INVESTIGATIONS / ECONOMIC CRIME DETECTION AND PREVENTION

arsa  is specialized in the detection and prevention of compliance violations in China, India, South Korea and Southeast Asia – corruption, fraud, embezzlement, and tax evasion.

arsa cooperates with a strong network of partners in the region. Our team comprises experienced experts in IT forensics, forensic accounting, taxes, law, and security.

INTERNAL AUDIT & COMPLIANCE

arsa performs financial and operational audits.

arsa improves the efficiency and effectiveness of important company processes.

ASIA & BEYOND

arsa focuses on Asia.

arsa also performs audits and investigations outside Asia, e.g., in Europe, USA, and South America, on request.
 
 
NEW! arsa provides its audit and consulting services also in Russia.

Services

Our Services

Detection and prevention of compliance violations

During routine financial or operational audits or compliance reviews/audits based on specific information obtained from informants (whistle-blowers), arsa identifies indications and evidence of fraudulent acts such as
 

  • bribery (UK Bribery Act)
  • fraud
  • embezzlement
  • tax evasion
  • IP violations

arsa secures and documents adequate evidence obtained during the audits for potential legal proceedings. arsa consulting determines with its clients, in close cooperation with lawyers or other professionals (tax experts, auditors, etc.), further procedures required in the specific case. arsa consulting develops effective and efficient internal control systems to discourage fraudulent acts and to prevent fraud to a large extent.

Internal Audit

Focus of the Audit

Beside our general reviews of bookkeeping accuracy, we focus particularly on working capital management to realize fast positive cash flow impacts. We specialize in auditing accounts receivable and accounts payable management. Our audit focus is on cash management and investment projects (investment planning, efficiency and ex-post calculations). Internal control systems are of special importance in finance and accounting; therefore, we conduct intensive reviews of your internal controls to protect you from potential frauds or uncover existing fraud.

Our working capital audits lead to recommendations about how to quickly and significantly improve our clients’ cash flow. We show how effective accounts receivable and inventory management can rapidly improve the cash-flow situation.

Our target is to identify cost-saving potentials and to optimize your sourcing processes for effectiveness and efficiency. We audit your supplier structures and purchasing conditions, as well as the overall organization of your purchasing departments to identify redundant functions and processes. The purchasing audits we conduct include analysis and evaluation of your internal control systems to avoid potential fraud or other inappropriate use of company funds.

An important element of our working-capital management audits is analysis of your inventory management, since inventories absorb high costs. We review the entire process chain from purchase requisition to customer delivery. Our focus is to reduce excessive inventories without endangering the capability to supply customers. We identify redundant functions and processes, which helps reduce costs. By reviewing and testing your internal control systems, we provide support for preventing or uncovering fraud or other inappropriate use of company funds.

We analyse the entire order process for efficiency of the existing organization and systems. Our target is to eliminate redundancies and to clearly define authorizations to prevent potential misuse of company funds. We review your master data management, especially authorizations for customer and supplier master-data management.

A takeover of management functions can bear significant risks for managing directors/general managers resulting from deliberate or negligent actions of the predecessor. Our comprehensive audits of all critical business areas and processes provide transparency of potential (liability) risks for the new managing director/general management.

The effectiveness and efficiency of your sales and marketing organization is an integral part of our audits. We also assess the quality of your sales controlling. During our review of your internal control system we analyse your authorizations for prices, discounts and the effectiveness of budget expenses.

Key aspects of our audit services for human resources is the HR-organization itself, where we identify redundant functions and processes and realize cost reduction potentials. We further review entire payroll process and internal control processes.

Based on the individual requests of our clients we perform special audits, e.g., audits of construction projects (bidding process, project controlling, etc.) or audits of organization and administration to identify obsolete overhead structures.

One of our key tasks is auditing the effectiveness of risk management – and of internal control systems. For further details please refer to risk management and internal control systems.

Internal Control Systems

Non-existent or inadequate internal control systems may lead to significant financial and image losses, resulting from fraud, among other problems. We specialize in the analysis and evaluation of internal control systems for effectiveness and efficiency. We identify essential control deficits and the resulting risk of potential fraud and help optimize your internal control system. Should your company not have an internal control system, we will develop and implement a customized one for you.

Due Diligence

arsa supports your due diligence activities during merger & acquisition (M&A) projects. We lead and coordinate multi-disciplinary due-diligence teams from finance & accounting, controlling, legal and HSE (health, safety and environment) to create a decision base for top management. We perform risk analyses and risk evaluations of the merger or acquisition target and review the recoverability of assets.

Expatriate Coaching

We offer customized one- or two-day in-house seminars, which prepare managers and leading employees for their China/Asia expatriate assignments. Our aim is to enable expatriates to deal with locally existing risks in accounting, working-capital management, purchasing, human resources, and material management. We also describe methods for reducing risks by applying efficient measures to prevent companies from damage. We transfer important practical knowledge for expatriates and regional-responsible managers in the areas of fraud prevention and detection, risk management and internal control systems.

Target Groups  
  • Managers to be delegated to China / Asia (CEO, CFO, COO, Head of Sales, Head of Operations, Controllers, Purchasers, Supply Chain Managers, Order Managers, etc.)
  • Managers responsible for China / Asia (CEO, CFO, COO, Head of Finance & Administration, Head of Sales, Subsidiary Controllers, Compliance Officers, Internal Auditors, Risk Managers, Heads of Purchasing, Order Managers, Supply Chain Managers, etc.)

About Us

Competences, Industries & Management

COMPETENCES

Our strength is long experience in internal auditing (financial, operational and fraud), especially in China, Japan, South Korea and Southeast Asia. We have also conducted numerous internal audits in the USA, Latin America, Western and Eastern Europe and the Middle East.

  • We gained our audit experience working for stock-listed (DAX-, M-DAX, S-DAX) and family-owned companies from Germany.
  • We adhere to internationally accepted audit standards and best practices. We have a high degree of objectivity, integrity, and ethical principles.
  • We convince by our pragmatic approach and collaborate only with experienced auditors.
  • We explain complex subjects in an understandable way.
  • Our audit reports are short, with clear findings, risk assessments, and pragmatic recommendations.
  • We help you with the implementation of measures for improvement.

INDUSTRIES

We are mainly active in the following industries:

  • Life Sciences/Chemical
  • Medical Technology
  • Biotechnology
  • Engineering
  • Food and Beverage
  • Automotive Suppliers
  • Textile Sector
  • FMCG
  • Consulting/Professional Services
  • Logistics
  • Airline Suppliers
  • Fairs and Exhibition
  • Plastics
  • Electronic Industry

Excellent services and fast results make arsa our first choice for global fraud investigations.

Compliance manager, stock-listed industrial company

 

arsa impressed us by years of experience, intelligent audit approaches, competence, and a very good network in Asia.

Head of Internal Audit, medium-sized industrial enterprise

MANAGEMENT

Wolfgang Haselberger, Managing Director of arsa consulting GmbH,

studied business administration and the Chinese language in Germany and China. After graduation, his professional career began as Finance Controller in Shanghai for a subsidiary of a German stock-listed engineering company. He then senior became internal auditor of a well-known German chemical and pharmaceutical company, where he lead numerous financial, operational and fraud audits globally, especially in Asia.

Mr. Haselberger developed and implemented IT-based risk management systems and participated in due-diligence projects in China and Japan. He has long experience as Senior Auditor and Head of Internal Audit in the chemical, pharmaceutical, engineering and food and beverage industries. He was also a member of the board of directors of the Brazilian subsidiary of a German chemical company.

Wolfgang Haselberger is a member of DIIR (German Institute of Internal Auditors), DAPG (German Asia Pacific Society), and DCW (German-Chinese Business Association).

REFERENCES

arsa particularly serves German stock-listed organizations (DAX 30, MDAX), small and midsized companies, and family-owned enterprises with an international focus. For reasons of discretion, we do not mention names here.

 
 
Lujiazui Finance&Trade Zone of Shanghai landmark skyline at dawn

Bribery
arsa revealed numerous cases of bribery by tax, governmental and customs officials and inadequate benefits granted to customers in East Asia. Bribery took place either directly to the recipient or indirectly via agents paid commissions. Beside cash payments, recipients gained other valuable benefits.

Fraud
Cases were identified where clients’ local senior managers acted against the company’s interest. Fraudulent actions included setting-up competitive companies or purchasing from the manager’s own or family related companies to the disadvantage of our clients.

Counterfeited products
In a stock counting audit, arsa uncovered inventories of counterfeited machinery components. The sale and assembly of counterfeited products could have caused severe property damage and human casualties, with significant liability risks for our client.

Tax evasion
In numerous cases, arsa identified tax evasions conducted by senior management of subsidiaries of German companies in Asia. Most of these cases involved evasion of company taxes and individual income taxes of managers.

Your Advantages

Why arsa makes a difference

arsa is objective, independent and pragmatic.

Our experts have extensive practice and deliver pragmatic solutions. 
arsa stands for compliance with reason.

We pay attention to cost-effectiveness: Our projects are flexible, transparent and offer our clients optimal cost control.

OUR SERVICES PROVIDE:

Improved corporate governance and compliance with legal and internal requirements

Reduced fraud and abuse risks, leading to reduced liability risks for company entities

Transparency of significant business risks and optimized internal control systems

News & Press Releases

We keep you up to date

arsa 2015: A retrospection

arsa had its most successful business year since foundation in 2009. New clients from Germany, Great Britain, Japan and Austria were acquired.

New long-term frame contracts for the set-up of internal control systems as well as internal audit departments were signed. This circumstance allows again a positive forecast for 2016.

In addition to our China- / Asia business, the European market has developed very positive.

Beside the detection of malpractices, the prevention of compliance violations gained more and more importance for our clients.

Contact

We would like to hear from you

arsa consulting GmbH

Kolpingstraße 1a
68165 Mannheim

Tel: +49 621 7621 2236
Fax: +49 621 7621 2235