Highest fraud risk is with suppliers and asset misappropriation
Chicago, IL (PRWEB) September 13, 2011
Vonya Global announced today it has released the final report on the effectiveness of corporate fraud risk management. The report is the result of a study which compiled opinions on the risk of fraud and the effectiveness of corporate fraud risk management. While the study participants almost universally agreed that the risk of fraud has increased during the economic downturn over the past 24 months, many believe that the risk will continue to rise over the next 24 months.
Some of the results include:
- Fraud risk will continue to rise over the next 24 months
- Highest fraud risk lies with suppliers
- Executives say highest fraud risk is in Asset Misappropriation (false billing schemes)
- Internal Auditors say highest fraud risk is in Asset Misappropriation (Expense Reports)
- Employee tip is the #1 way fraud is uncovered
- Code of Ethics is #1 Fraud Prevention strategy
It is well know that the risk of fraud is present in almost every business regardless of size, shape, and complexity. The risk could materialize itself in an employee, a vendor, a client, or in the boardroom. It could be “detrimental” by bleeding company assets or “beneficial” by artificially inflating company financial statements. These frauds could play out in scenarios that are quite varied, and be concealed by strategies that are sophisticated and complex. The report reveals some of the strategies corporations use to combat the risk of fraud.
The study compiled opinions of Executives and Internal Auditors from private, public, and not-for-profit organizations, spanning many industries on strategic planning for fraud prevention, detection, and deterrence. One of the goals of the study was to provide information that would allow companies to evaluate the investment in fraud risk management. This is the second study Vonya Global has conducted on this topic; the first was released in 2009. The study compiles opinions about risk management strategies employed to combat fraud.
To download a copy of the report please visit Vonya Global’s home page: http://www.vonyaglobal.com.