Money disappears from your accounts. Inventory counts fail to match sales records. Profit margins shrink despite consistent revenue. You suspect theft. You trust your staff. You hired them years ago. You treat them like family. Yet the numbers do not add up.

Trust is not an internal control. Fraud happens in Kathmandu businesses every day. It happens in manufacturing plants in Biratnagar. It happens in trading houses in Birgunj. Employees exploit weak systems. Partners hide profits. Vendors inflate bills.

You need more than a standard audit. You need a specialized investigation. This is the work of a forensic accountant. GP Rajbahak and Co. provides this expertise to protect your assets.

Forensic accounting in Nepal combines accounting, auditing, and investigative skills. A standard internal audit in Kathmandu checks for compliance. It ensures your financial statements follow the rules. It looks for material errors. It relies on sampling. It does not actively hunt for crime.

Forensic accounting differs. It actively seeks evidence of fraud. We look behind the numbers. We analyze the intent. We assume the books might be cooked. The goal is to uncover the truth for legal or business resolution.

The outcome often ends up in court. The report must stand up to cross-examination. It serves as evidence in litigation. It supports insurance claims. It helps you recover stolen funds.

Discovery 

Auditors find the discrepancy. They identify the specific scheme. It might be asset misappropriation. It might be financial statement fraud. It might be corruption or bribery.

Analysis

Firms quantify the loss. They determine how it happened. They identify who did it. They trace the flow of money through bank accounts and ledgers.

Communication 

Auditors present the findings. They write clear reports. They simplify complex financial data. You use this information to fire the employee, file a police case, or sue for damages.

Nepal presents unique challenges. Many businesses run on informal systems. Cash transactions remain common. Record-keeping often lacks rigor. This creates a fertile ground for fraud.

The Companies Act 2063 requires transparency. The Income Tax Act 2058 demands accurate reporting. Fraud puts you in violation of these laws. You face fines from the Inland Revenue Department (IRD). You risk your reputation.

Fraudsters are smart. They know your internal controls better than you do. They find the holes. They exploit them. Criminologists use the Fraud Triangle to explain theft. Three elements must exist.

‍Pressure 

The employee faces a financial problem. They have high personal debt. They have a gambling addiction. They face medical bills. They need money fast.

‍Opportunity 

The business lacks oversight. One person handles both cash collection and recording. No one reviews the bank reconciliation. The warehouse remains unlocked. The employee sees a chance to steal without getting caught.

‍Rationalization 

The thief justifies the crime. They tell themselves they are borrowing the money. They feel underpaid. They believe the company makes enough profit. They think they deserve it.

‍Ghost Employees 

A payroll manager adds a fake name to the list. They might use the name of a former employee. They divert the salary to their own bank account. This happens frequently in large construction firms or factories with high turnover.

‍Billing Schemes 

An employee sets up a shell company. They submit invoices for services never rendered. They approve the payment themselves. The company pays for consulting or maintenance that never happened.

‍Expense Reimbursement 

Sales staff inflate travel expenses. They submit personal meal receipts. They claim mileage for trips they did not take. Small amounts add up over years.

‍Inventory Theft 

Staff steal products. They write them off as "damaged" or "expired." They sell the goods on the black market. The books balance because the inventory was written off.

‍Skimming 

This occurs before the money enters the system. A cashier takes cash from a customer. They do not ring up the sale. They pocket the money. No record exists. This is the hardest fraud to detect.

‍Lapping 

An employee steals a payment from Customer A. They use a later payment from Customer B to cover Customer A's balance. They use a payment from Customer C to cover Customer B. They keep shifting the shortage.

You require clarity in complex financial matters. GPR delivers this through advanced investigative techniques and data analytics.

‍Fraud Detection and Prevention 

Fraud Detection in Nepal is often overlooked. We use data analytics to spot irregular patterns. We review transactions and assess internal controls. This identifies misappropriation and financial misconduct before it escalates.

‍Asset Tracing and Recovery 

Hidden assets complicate disputes. We track assets across Nepal and foreign jurisdictions. We investigate fraudulent transfers to help you recover what you own.

‍Employee Misconduct Investigations 

Internal theft damages your financial health. We conduct discreet investigations into bribery, conflict of interest, and embezzlement. You get the facts you need to act.

‍Litigation Support 

Legal disputes demand accurate evidence. We prepare detailed financial reports for arbitration or court. We offer expert testimony to support your case.

‍Financial Discrepancy Resolution 

Unexplained losses disrupt business. We examine records to find the root cause of imbalances. We reconcile accounts and recommend corrective actions.

‍Insurance Claim Analysis 

Theft or damage leads to complex claims. We assess the true financial impact. We substantiate your claim to ensure fair treatment from insurance providers.

‍Due Diligence 

Mergers involve risk. We evaluate the integrity of your potential partners. We uncover hidden liabilities so you negotiate with accurate information.

PDetection stops the bleeding. Prevention keeps you healthy. You must change the way you operate.

‍Segregation of Duties 

No single person should control a transaction from start to finish. The person who writes the check should not sign the check. The person who orders goods should not receive the goods. The person who handles cash should not record the entries.Split these tasks. If you lack staff, involve yourself. Sign every check. Review the bank statement personally.

‍Mandatory Vacations 

Fraudsters never take time off. They fear someone will find their scheme while they are away. Force your accounting staff to take two weeks of consecutive leave. Rotate their duties during this time. The temporary replacement will notice the discrepancies.

‍Surprise Audits 

Do not announce every audit. Walk into the finance department. Ask to see the petty cash box. Ask to see the latest bank reconciliation. Go to the warehouse. Count a specific item. The fear of a surprise check deters theft.

‍Whistleblower Hotline 

Your honest employees know what is happening. They stay silent because they fear retaliation. Give them a safe way to report. Set up an anonymous email address. Set up a phone line. Reward them for tips that lead to recovery.

‍Background Checks 

Verify the history of new hires. Check their references. Check for criminal records. Check their credit history if they handle money. A desperate person poses a higher risk.

‍Code of Conduct 

Set the tone at the top. If you cheat on taxes, your staff will cheat you. If you take cash from the register, they will too. Model the behavior you expect. Create a written code of ethics. Make everyone sign it.

‍Digital Controls 

Restrict access to your accounting software. Use strong passwords. Log every change in the system. Limit who can delete a transaction. Review the audit trail logs regularly.eople make your business run. Restructuring often creates anxiety among staff. You must handle the human side with care and legal precision.