Corporate Fraud, Within Corporate Governance

1645 WordsOct 19, 20147 Pages
INTRODUCTION The past decade has seen the discredit and collapse of various high-profile corporations across the world. These scandals were inherently the result of fraud, scams, mismanagement, fraudulent reporting and audit failure among many other deficiencies present in the corporate governance model of various syndicates. Some of these made the very foundation of the financial markets unstable and open to financial crisis. The international and national community were compelled to more efficiently address the issues of corporate fraud, misconduct of management, corruption and weak audit measures. In this paper we will focus on fraud, mainly occupational fraud, within corporations and combat mechanisms available within corporate governance. “No entity is immune from fraud. Fraud indiscriminately affects all types of organizations regardless of sector, size, or geographical location. It does not distinguish between public or private entities, by what they do, by their environmental footprint, by their level of sustainability, by their public profile, or by the number of years they have been in existence.” The consequences of fraud can prove to be dire for any organisation, from irreparable damage to reputation to possible bankruptcy. As per the Association of Certified Fraud Examiners (ACFE) Global Fraud Study 2014, survey participants estimated that the typical organization loses 5 per cent of revenues each year to fraud. If applied to the 2013 estimated Gross World
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