Behind the Numbers

Lucas was a financial auditor in São Paulo, Brazil. He worked for a big audit firm called Mendes & Co., which specialized in checking the financial records of food processing companies. One day, his boss gave him an important task: audit the financial records of GreenEarth Biofoods, a company that transformed food waste into sustainable products, just like Darling Ingredients.

Lucas was excited but also knew this was a big responsibility. If something was wrong with the company’s finances, it could lead to legal problems, investor distrust, or even financial loss for the company. His job was to verify that GreenEarth was reporting its money and operations correctly.

The Audit Begins

Lucas and his team traveled to GreenEarth’s main plant in Curitiba, where thousands of tons of food waste were processed into biofuel and animal feed every month. The company claimed that its revenues were 10 million reais per month, but Lucas had to double-check the numbers.

1. Checking Financial Records

   • Lucas asked for invoices, bank statements, and sales reports.

   • He compared what the company reported to what was actually in their bank accounts.

   • He noticed that some numbers didn’t match—there was a missing 500,000 reais in the records.

     
     

2. Reviewing Internal Controls

   • Lucas interviewed the finance team to understand how they tracked expenses.

   • He found out that one employee had too much control over approving payments.

   • This was a red flag—it meant there could be fraud.

     
     

3. Site Visit & Inventory Check

   • Lucas walked through the production line and saw that fewer materials were being processed than what was reported in the financial statements.

   • This meant someone could be inflating numbers to make the company look more profitable.

     
     

4. Finding the Problem

   • After digging deeper, Lucas discovered that a manager had created fake invoices for supplies that were never actually bought.

   • The missing 500,000 reais? It had been paid to a fake supplier account set up by the manager.

     
     

The Report & Consequences

Lucas finished his audit report and presented his findings to the company’s directors. The manager involved in the fraud was fired, and new security measures were put in place, such as requiring two approvals for large payments.

The company was lucky—the fraud was caught before it got worse. Thanks to the audit, GreenEarth Biofoods avoided a financial crisis and rebuilt trust with investors.

Lucas felt proud. He had protected not just the company, but also its workers and customers. And most importantly, he had ensured honesty and transparency in the business world.