Identification of financial risks and accounting irregularities

The service focuses on systematically detecting, assessing, and prioritizing financial risks and accounting irregularities across the organization’s processes, records, and reporting frameworks. Advanced analytical techniques, data-driven testing, and expert judgment are applied to identify potential misstatements, non-compliance, fraud indicators, and control weaknesses. The outcome supports informed decision-making by management and stakeholders, enabling timely remediation actions, strengthening internal controls, and enhancing the reliability of financial information. Submit a request

Strategic Identification of Financial Risks and Accounting Irregularities in the Danish Market

In the Danish business environment, characterized by a high level of trust, transparency and stakeholder engagement, the systematic identification of financial risks and accounting irregularities has become a strategic necessity rather than a purely compliance-driven exercise. Read more.

Case study

Hidden Liquidity Traps in a Manufacturing Group

A large industrial manufacturing group had been reporting double-digit revenue growth for five consecutive years, yet the cash position remained chronically tight. The bo...More +

Retail Margins Saved by Risk Detection

A nationwide non-food retail chain had been expanding aggressively through new store openings and an online channel, yet profitability remained stubbornly below expectati...More +

Banking Portfolio Risks Uncovered Early

A regional commercial bank with a strong presence in small and medium-sized enterprises had enjoyed years of steady growth in its loan portfolio. Regulatory ratios were c...More +

Tech Scale-Up Exposes Revenue Risks

A fast-growing software-as-a-service provider in the technology sector had become a media favorite, celebrated for rapid user acquisition and impressive top-line growth. ...More +

What we provide

Risk Mapping

We map the client’s financial risk landscape across processes, entities, and geographies to pinpoint areas most vulnerable to misstatement or manipulation.

Data Analytics

We apply advanced data analytics and anomaly detection to large financial datasets to identify unusual patterns, trends, and outliers that may indicate irregularities.

Control Assessment

We evaluate the design and operating effectiveness of internal controls over financial reporting to uncover gaps that could enable errors or fraud.

Accounting Review

We perform targeted reviews of accounting policies, estimates, and complex transactions to detect inconsistencies, aggressive judgments, or non‑compliance with standards.

Forensic Procedures

We conduct forensic accounting procedures, including transaction tracing and supporting‑document testing, to verify the authenticity and accuracy of financial records.

Fraud Indicators

We identify and assess red flags of potential fraud, such as revenue recognition anomalies, related‑party transactions, or unusual journal entries, and quantify associated risks.

Regulatory Alignment

We benchmark financial reporting practices against regulatory and industry requirements to highlight deviations that may expose the organization to enforcement actions.

Remediation Roadmap

We design a prioritized remediation roadmap with concrete actions, owners, and timelines to strengthen controls, reduce financial risks, and prevent future irregularities.

Sustainable Future Through Financial Risk and Accounting Integrity

In a global economy shaped by climate change, resource scarcity and social expectations, the ability to identify financial risks and accounting irregularities becomes a strategic lever for a more sustainable future. Consulting firms that specialize i...

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How can we support you?

Comprehensive identification of financial risks and accounting irregularities enables early detection of issues that could threaten business continuity, valuation, or regulatory standing. The following areas illustrate how a leading consulting firm can systematically uncover, assess, and help remediate hidden exposures in financial reporting and related processes.

In-depth review of financial statements and accounting policies

A structured review of financial statements is conducted to identify inconsistencies, unusual trends, and areas with elevated risk of misstatement. Particular attention is paid to revenue recognition, provisions, impairments, and complex estimates that are especially vulnerable to management bias. Radner benchmarks key ratios and disclosures against industry peers to highlight outliers that may signal irregularities or aggressive accounting. Supporting documentation, such as accounting memos and management judgments, is examined to verify whether policies are applied consistently and in line with applicable standards. This approach allows for the detection of both technical non-compliance and more subtle forms of earnings management. The outcome is a clear map of high-risk areas in the financial statements and concrete recommendations for strengthening transparency and reliability.

Detection of fraud indicators and manipulation patterns

Analytical procedures are used to identify red flags that may indicate fraud, misappropriation of assets, or deliberate manipulation of results. Transaction-level data is examined to uncover unusual journal entries, round-sum postings, and end-of-period adjustments that lack clear business rationale. We apply forensic data analytics to detect patterns such as duplicate vendors, fictitious customers, or circular transactions between related entities. Qualitative indicators, including pressure on targets, incentive structures, and override of controls, are also assessed to understand the broader fraud risk environment. This combination of quantitative and qualitative analysis increases the likelihood of detecting schemes that would not be visible through standard audit procedures. Findings are documented in a way that can support internal investigations, audit committees, or, if necessary, external proceedings.

Evaluation of internal controls over financial reporting

Internal control frameworks over financial reporting are evaluated to determine whether they effectively prevent and detect accounting irregularities. Key processes such as revenue, purchasing, inventory, treasury, and closing procedures are mapped and tested for control design and operating effectiveness. Radner identifies control gaps, excessive manual interventions, and areas where segregation of duties is insufficient or easily overridden. The interaction between IT systems and financial processes is reviewed to assess the reliability of automated controls and the integrity of underlying data. Particular emphasis is placed on controls around estimates, judgments, and non-routine transactions, where the risk of error or manipulation is highest. The result is a prioritized list of control weaknesses and practical remediation measures that reduce the likelihood of future misstatements.

Risk assessment for regulatory, tax, and compliance exposure

A holistic risk assessment is performed to identify financial reporting issues that may trigger regulatory, tax, or compliance consequences. We review alignment between reported figures, tax positions, and regulatory filings to detect inconsistencies that could attract scrutiny from authorities. Special focus is placed on transfer pricing, recognition of deferred taxes, and treatment of complex transactions such as restructurings, acquisitions, and intra-group financing. Radner assesses whether disclosures adequately reflect material risks, contingencies, and related-party relationships, reducing the risk of allegations of misleading reporting. The potential impact of identified irregularities is quantified, including penalties, back taxes, restatement costs, and reputational damage. This enables management and boards to make informed decisions on remediation, voluntary disclosures, and communication with stakeholders.

Why choose us?

Local Insight

We combine deep knowledge of Danish financial regulations with international best practices to identify risks that others overlook. We understand how local tax rules, reporting standards, and industry specifics shape the financial risk profile of companies operating in Denmark.

Forensic Precision

We use advanced data analytics and forensic accounting techniques to detect even subtle accounting irregularities and patterns of manipulation. We systematically test the consistency of financial data across systems, periods, and entities to uncover hidden exposures before they escalate.

Actionable Outcomes

We translate identified financial risks and irregularities into clear, prioritized recommendations that management can act on immediately. We work closely with stakeholders to design pragmatic remediation plans that strengthen internal controls and reduce the likelihood of future issues.

Contact

Need more information? Contact us.