Combating fraud: know the facts.
There is no such thing as an unimportant fraud. Every organization needs to remain vigilant to improve the ability to combat fraud. Here are some 1994 fraud facts from a survey of 3,000 large and midsized U.S. companies.[ILLUSTRATION OMITTED]
What steps are you planning to take to reduce fraud in your organization?
Review and improve 34% internal controls Training courses in fraud 21% prevention and detection Increase senior management 21% focus on the problem Fraud audit 16% Reference checks 10% on new employees Increase role 10% of audit committee Increase budget 9% for internal audit Establish a corporate 9% code of conduct Increase budget for 9% security department Code of sanctions against 8% suppliers and contractors Surveillance equipment 8% Staff rotation policy 4% Employment contracts 4% Other 3%
Note: Multiple responses given.
How were the frauds discovered?
Internal controls 52% Notification 51% by employee "whistle blower" Internal auditor review 47% Specific investigation 42% by management Notification 34% by customer Accident 28% Anonymous letter 26% Notification 15% by supplier Specific investigation 14% by employees Notification 11% by police Notification by 8% government agency Specific investigation 7% by third party External 5% auditor review Other 2%
Note: Multiple responses given.
Source: KPMG Peat Marwick
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| Publication: | Journal of Accountancy |
|---|---|
| Article Type: | Illustration |
| Date: | Sep 1, 1995 |
| Words: | 205 |
| Previous Article: | IFAC on audit and environment. |
| Next Article: | Part-time employees getting more benefits and options. |
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