ID :
127067
Thu, 06/10/2010 - 07:54
Auther :
Shortlink :
https://oananews.org//node/127067
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GLOBAL FRAUD RISE TRIGGERS SERIOUS LIABILITY CONCERNS AMONG GLOBAL BOARDS
KUALA LUMPUR, June 9 (Bernama) -- A global survey by Ernst & Young on fraud shows board of directors are increasingly concerned about their personal liability from fraud, bribery and corruption.
Executives interviewed believe their boards are not sufficiently prepared to
deal with new risks from fraud and corruption as companies return to growth,
said E&Y in a statement today.
The E&Y 11th Global Fraud Survey also reveals 76 per cent of respondents
feeltheir boards are perceived as being especially worried in Latin America (95
per cent), Middle East and Africa (87), Central and Eastern Europe (84),
Australia (81) and the Far East (77).
The responses from over 1,400 chief financial officers (CFOs) and heads of
internal audit, legal and compliance in major companies in 36 countries across
the world also showed fraud appears to be increasing significantly in some
regions.
On the preventive front, a sizeable 25 per cent of respondents in the Far
East have never tested fraud risk.
This is despite 77 per cent of the respondents indicating that their boards
are very or fairly concerned about their personal liability from fraud, bribery
and corruption.
Despite the boards' concern, "they do not appear to be behaving in a way
that would increase their own protection," E&Y said.
Of concern is that globally, only four out of 10 CFOs interviewed were asked
to perform a review of anti-fraud and corruption controls in the previous 12
months.
Internal controls and internal audit continue to be seen as a company's main
line of defence against fraud by the vast majority of respondents.
A majority of respondents globally (60 per cent) regard management override
of internal controls as one of the greatest challenges in countering fraud, but
a stronger internal audit is still considered the most effective means of
detecting such fraud by 71 per cent of the global respondents.
Philip Rao, Partner, Fraud Investigations & Disputes Services, Ernst & Young
Advisory Services Sdn Bhd., said: "More attention should be given to addressing
internal audit's findings and recommendations, especially when red flags have
been raised, as this will enable remedial action to be taken long before an
issue grows into a major concern for the company."
-- BERNAMA
Executives interviewed believe their boards are not sufficiently prepared to
deal with new risks from fraud and corruption as companies return to growth,
said E&Y in a statement today.
The E&Y 11th Global Fraud Survey also reveals 76 per cent of respondents
feeltheir boards are perceived as being especially worried in Latin America (95
per cent), Middle East and Africa (87), Central and Eastern Europe (84),
Australia (81) and the Far East (77).
The responses from over 1,400 chief financial officers (CFOs) and heads of
internal audit, legal and compliance in major companies in 36 countries across
the world also showed fraud appears to be increasing significantly in some
regions.
On the preventive front, a sizeable 25 per cent of respondents in the Far
East have never tested fraud risk.
This is despite 77 per cent of the respondents indicating that their boards
are very or fairly concerned about their personal liability from fraud, bribery
and corruption.
Despite the boards' concern, "they do not appear to be behaving in a way
that would increase their own protection," E&Y said.
Of concern is that globally, only four out of 10 CFOs interviewed were asked
to perform a review of anti-fraud and corruption controls in the previous 12
months.
Internal controls and internal audit continue to be seen as a company's main
line of defence against fraud by the vast majority of respondents.
A majority of respondents globally (60 per cent) regard management override
of internal controls as one of the greatest challenges in countering fraud, but
a stronger internal audit is still considered the most effective means of
detecting such fraud by 71 per cent of the global respondents.
Philip Rao, Partner, Fraud Investigations & Disputes Services, Ernst & Young
Advisory Services Sdn Bhd., said: "More attention should be given to addressing
internal audit's findings and recommendations, especially when red flags have
been raised, as this will enable remedial action to be taken long before an
issue grows into a major concern for the company."
-- BERNAMA
