Weak internal controls are the most usual enabler of fraudulent acts in the workplace (making up almost half of all cases), a new international study by KPMG Forensic has found.

The typical employee who engages in fraud is a trusted male executive working in the finance department, who gets away with over 20 misdemeanors during a period five years or more, says the study.

Offences are most commonly discovered through staff ‘whistle blowing’ (in 25 per cent of cases), while management reviews are the second most common vehicle for detection (21 per cent).

KPMG’s study analysed 360 actual company fraud cases which the forensic departments of KPMG firms in Europe, the Middle East and Africa have investigated over recent years.

To assist small business, CPA Australia has produced the publication Internal Controls for Small Business. It covers how small business owners can analyse their operations and understand whether their procedures adequately minimise risks and promote best practice.
Further information

* access the report from the KPMG website (free registration required)
* download the brochure on the seminar Identifying and preventing fraud in your organisation (PDF – 169 KB)
* view details about the publication Internal Controls for Small Business, available for purchase from the CPA Store

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