kpmg. The Fourth Asian Roundtable on Corporate Governance. Shareholder Rights and the Equitable Treatment of Shareholders. Deepankar Sanwalka KPMG. “Tools and Rules to Combat Fraud”. Mumbai, India 11-12 November 2002.
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The Fourth Asian Roundtable on Corporate Governance
Shareholder Rights and the Equitable Treatment of Shareholders
“Tools and Rules to Combat Fraud”
11-12 November 2002
The views expressed in this paper are those of the author and do not necessarily represent the opinions of the OECD or its Member countries, the ADB or the World Bank
What is Fraud?
“A practically conclusive test as to the fraudulent character of a deception for criminal purposes is this:Did the author of the deceit derive any advantage from it which he could not have had if the truth had been known?”- Stephen’s “History of the Criminal Law of England”
is a deliberate deceit which is planned and executed to deprive an individual of property, money or any other valuable security. Fraud must be committed with intent and includes actions of misrepresentations and/or acts of omission
Managing the risk of fraud is essentially no different to managing any other type of business risk
An effective control system within the organisation is the first deterrent to the occurrence of Fraud within the organisation
Principles of fraud risk management
Risk is an integral part of business. But how do you effectively manage the risk of loss due to fraud?
Fraud / Statement
detection by line
Accountability and Controls
Lifestyle & Personality
1.Shut the door
2.Safeguard the evidence
3.Notify your insurer
4.Do not confront a suspect without consulting an advisor who has fraud investigation experience
5.Decide on your objectives
6.If you are considering prosecution, contact the police
7.Consider suspending the suspect employee
8.Determine whether external or internal resources will be used to investigate the fraud
9.Determine who should be interviewed
10.Consider prevention measures to prevent future occurrences