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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.


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
COPYRIGHT 1995 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
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Publication:Journal of Accountancy
Article Type:Illustration
Date:Sep 1, 1995
Previous Article:IFAC on audit and environment.
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