Illustrative challenges that clarify solutions of ComputationalAuditing.com:
1. Make detectable and prevent under-reporting of revenue by franchisees,
royalty payers, and other payers of revenue based fees.
You are the franchisor of a hotel chain. Some of your franchisees only
report part of their revenue. Using advanced trickery like sales suppression
software or zappers. Or just simply by receiving cash payments, without
recordings. Together this creates a material understatement.
How do you unmask the fraudulent franchisees?
What convinces you that no revenue is missed? Relevant in for example the
global hospitality services industry: hotel franchises, restaurant franchises, etc.
2. Make detectable and prevent fake franchisees, fake dealerships or
sales of counterfeit products using your brand name.
You are a pharmaceutical developer. Part of your global network of production
units and resellers are involved in running overproductions and counterfeiting
your product. This amounts to a material understatement of revenue.
How do you unmask the fraudulent manufacturers and resellers?
What convinces you that no revenue is missed?
How to provide direct assurance to the product consumer, showing that you
globally control your brand in real-time?
Relevant in for example quality brand industries, like pharmaceutical
manufacturers and their global dealer networks, thus opening up business
presence opportunity in markets and continents where this is inveterated.
3. Provide assurance to clients that they are buying the genuine product.
On individual product level. On the spot of the sales transaction. Electronic
self-assurance mechanism for franchisee clients. Brand control for franchisor.