Organizational Fraud

9733 WordsAug 11, 200939 Pages
ORGANIZATIONAL FRAUD [pic] Submitted by: Amit Goel(amigoel@gmail.com) Mohit Goel Executive Summary For many organizations, “getting it right” or “getting it wrong” is a matter of survival. This study talks about the issues like, ‘organisational fraud’, ‘ethics’ & ‘empowerment’ in an organisation and their relation to standards of good behaviour in order to explore various ways in which occurrences of ever increasing frauds can be checked. Organisational Fraud can be perpetrated by those outside an organization (“third parties”), by employees, or through the collusion of employees and third parties. Numerous surveys in recent years have reported that the majority of fraudsters are employees, with more than half of these being…show more content…
INTRODUCTION In India the Satyam scam has grabbed all the headlines, but organizational frauds are likely to be uncovered in many countries. In the leading capitalist economy, the United States, such organizational frauds have been rising sharply in recent years, according to data from the official investigating agency, as FIG 1 shows. Between 2001 and 2007, the number of organizational fraud cases that were opened by the FBI increased by 43.7 per cent, even though convictions barely increased (KPMG, 2006). Organizational frauds remain a constant threat to organizations in India also and Satyam being a classic example. FIGURE 1: Fraud cases over the years in USA [pic] Source: Fraud survey report 2008, KPMG This ought to be surprising, because after the huge organizational accounting scandals of the early part of the decade, exemplified by the Enron[2] scandal and the subsequent exposure of significant firms like WorldCom, Refco[3] and others, the US
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