Corporate frauds on rise in India- Survey

As per the findings of India Fraud Survey Report 2012 published by KPMG, around 75% surveyed corporate in India believed that the incidences of fraud were increasing. As per the report:

  • Decline of ethical values, weaker internal control system, reluctant managers for taking the decisive action were major reasons.
  • Mistake of senior management tasks by the audit committees, weak regulatory mechanisms major concern. 
    Sales, distribution and procurement are most susceptible areas of fraud. 
  • Competition to surpass market expectations was the primary reason behind financial fraud
  • Fraud in financial statement was a primary concern
  • Absence of recognized fraud risk management system
  • In coming years, Computer-related and e-commerce frauds would become major concerns,
  • Around 75% frauds were committed by the employees

The important findings of the Survey are as follows:

  • 63% say the desire to exceed market expectations is the main reason to commit financial fraud
  • 81% say financial statement fraud is a major issue
  • 41% say they do not have a formal fraud risk management framework
  • e-commerce & computer-related fraud to be a source of major concern in the coming years
  • 75% all fraudulent activities, except Intellectual Property (IP) fraud were perpetrated by employees

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Categories: Banking Current Affairs 2018Business & Economy Current Affairs 2018

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