Internal audit’s warning of the potential for overbilling was ignored, allowing millions of dollars in hourly fees to go unchecked.
Two years ago, Future Energy Corp. (FEC), based in Finland, decided there was a need for flexibility and cost-cutting, so it changed its payment for services from a fixed fee to an hourly fee and implemented an IT system to track hours. Future Power, a subsidiary of FEC, relied heavily on BX Solutions OY, a subsidiary of BX Ltd., to maintain and repair its production equipment. After FEC conducted an annual risk assessment of its subsidiaries, internal audit decided to schedule a review of the equipment maintenance and repair process.
