Investigations Recruitment in Canberra

The following is an extract from KMPG's Forensic Fraud Survey 2009 at page 8, where managers were asked "...what factors may allow instances of fraud and misconduct to occur within their organisations...." The response is interesting and has significant consequences for middle to senior managers in terms of organisational controls and compliance. The following is a copy of that extract.

Enablers of Fraud and Misconduct
Management’s efforts to prevent, detect, and respond to fraud must be informed not only by its prevalence and nature, but also by the root causes of such misconduct. As such, we asked executives what factors may allow instances of fraud and misconduct to occur within their organizations. The most commonly cited were inadequate internal controls or compliance programs. Similarly, almost half of executives surveyed cited management override of controls, inadequate director oversight over management, and collusion between employees and third parties. A lower number of respondents, almost a third, cited collusion between management and third parties or between employees and management.
Q. In your opinion, what most enables fraud and misconduct to occur within organizations today?
____________________________________________
Inadequate internal controls or compliance programs 66%
Management override of internal controls 47%
Inadequate oversight by directors over management 44%
Collusion between employees and third parties 43%
Collusion between management and third parties 32%
Collusion between employees and management 27%
Other factors 4%......."

KMPG's Forensic Fraud Survey 2009 at page 8

mmmm........................what are we going to do about it managment!!