1 / 28

F raud in corporate environment - results of the survey

F raud in corporate environment - results of the survey. 3 1 May 2005. Fraud level and perception. Experiencing fraud in company. The vast majority of the surveyed chairmen (64%) encountered fraud in the l ast three years. Recorded losses.

natane
Download Presentation

F raud in corporate environment - results of the survey

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Fraud in corporate environment- results of the survey 31 May 2005

  2. Fraud level and perception

  3. Experiencing fraud in company The vast majority of the surveyed chairmen (64%) encountered fraud in the last three years.

  4. Recorded losses Responses of the surveyed who encountered fraud in the course of their business activity over the last three years 17% of respondents could not determine losses due to fraud (2003 - 16%); 3 % of respondents lost over PLN 5,000,000, which constitutes a significant decrease compared to the last year and may be the result of a wider spectrum of the surveyed population.

  5. Fraud level Responses of the surveyed who encountered fraud in the course of their business activity over the last three years 13 % of respondents did not know the scale of fraud.

  6. Impact and consequences

  7. Fraud consequences Responses of the surveyed who encountered fraud in the course of their business activity over the last three years • Most often quoted consequences include: • lower employee morale; • weakened company reputation.

  8. Does fraud in Poland decrease inflow of foreign investments? 68% of the surveyed chairmen believe that there is a strong correlation between the inflow of foreign capital and fraud level.

  9. Fraud detection

  10. Responses of the surveyed who encountered fraud in the course of their business activity over the last three years Fraud detection level Fraud in corporate environment is not commonly detected. Only every third respondent who has encountered fraud in his own company believes that fraud detection exceeds 75%. Over 26 % of companies do not know the percentage of detected fraud cases.

  11. What is fraud detected? • Most popular fraud detection methods include: • routine supervisory activities of the company’s management; • whistle blowing; • internal audit.

  12. Who is responsible for fraud? Responses of the surveyed who encountered fraud in the course of their business activity over the last three years In most cases, fraud is committed by employees.

  13. Departments most exposed to fraud Responses of the surveyed who encountered fraud in the course of their business activity over the last three years Sales and procurement departments are most exposed to fraud.

  14. Reporting and loss recovery

  15. Fraud reporting 49% of respondents disclose losses due to fraud in their annual financial statements (in 2003 – 57%).

  16. Loss recovery Responses of the surveyed who encountered fraud in the course of their business activity over the last three years • Loss recovery is not common. • every fourth respondent declared not to have recovered any losses due to fraud; • every third respondent believes that less than 25% of losses have been recovered; • only 15% of respondents declared to have recovered more than 50% of the incurred losses.

  17. Regulations

  18. Are Polish regulations sufficient to truly prevent fraud? Polish regulations are not sufficient to truly prevent fraud.

  19. Is Polish justice system effective enough in fighting fraud? The prevailing opinion is that Polish law enforcement bodies (police and Public Prosecutor’s office) do not have sufficient means to fight fraud.

  20. Accession to EU vs. level of fraud in Polish companies

  21. Consequences of Poland’s accession to the European Union The situation has not changed after Poland’s accession to the European Union (75%). Any potential changes would be positive.

  22. Consequences of Poland’s accession to the European Union (cont’d) • Threats: • computer crime, • money laundering, • organized crime.

  23. Fraud prevention

  24. How can we help (1) ? Identification of risk areas Understanding and estimatingrisk scale Forming risk management group and setting goals Introducing and monitoring controls Creating risk management strategy Implementing strategy and assigning responsibilities

  25. How can we help (2) ? 3. Investigation 1. Prevention 2. Detection

  26. Why Deloitte?Our Forensic Services Team– scope of activities: • Fraud investigation services. • Tracking lost assets. • Litigation assistance. • Potential fraud reviews (including DTective – a Deloitte methodology). • Assistance in development and implementation of fraud prevention policies and procedures. • Verification of procedure and policy compliance within money laundering prevention. • Business investigative services. • Recovery of lost computer data.

  27. Contact Maria Rzepnikowska Partner E-mail: mrzepnikowska@deloitteCE.com Tel: 22 511 08 03 Fax: 22 511 08 13 www.deloitte.com/pl Deloitte ul. Fredry 6 00-097 Warszawa

  28. Member of Deloitte Touche Tohmatsu Deloitte & Touche Sp. z o.o.

More Related