The typical fraudster - Aftenbladet.no

It is the conclusion of a major study accounting and consulting giant KPMG made from 348 cases they have been to investigate in 69 different countries. Through the survey, KPMG tried to draw a picture of the typical fraud, to help businesses prevent fraud, corruption or other financial irregularities.

Fraud can happen anywhere

– When one discovers embezzlement or corruption, as is usually the first conclusion that internal control is inadequate. Otherwise it would not have happened, says partner Brett Christensenved KPMG in Bergen to Bergens Tidende.

Although he rejects such statements.

– There are few internal controls, if any, that might prevent all forms of embezzlement. Such conclusions testify lack of insight. For embezzlement or corruption can happen anywhere, says Christensen

Rarely alone in the scam

survey by KPMG shows that in the majority of cases the scammer has not been alone in the fraud. In most cases, he has helped to make the scam.

motive for most fraud is personal greed, the report states. The second most important motive is strong pressure on the deceiver to reach indviduelle goals, often related to budgets or profitability.

Light internal business helps to make fraud easier to implement, the authors of the report.

Brett Christensen who also teaches internal NHH, points out some key elements that are important for the quality of internal control:

Important for internal control

– The first is how internal control is perceived within the organization. Is there such okay to bring lots of pens or kontorrekvisista home with them? What is the general attitude in the business to comply with laws and regulations?

next go at risk. And that applies to everything from the opportunities employees have to carry embezzlement, or procedures to prevent major financial losses. Such risks of loss may be the possibility that a fashion shop are stuck with old clothes models, says Christensen.

Controls and Accounting

– A third factor is control. And it can be something as simple as that you check the invoice before making payment. Fourth, information flow and accounting major. For a consulting company can be controlled by customer hours, to check the amount of working time spent on billable work. The last relationship goes on surveillance.

Roughly speaking, these are the things all internal rooms, says Christensen.

Costs and benefits

And there are three objectives that need to be on the watch for these things to work.

– It is profitable and efficient operations, compliance with laws and regulations and reliable accounting, he says.

Still no internal guarantee that fraud and irregularities not happening.

– For there will always have to be a relationship between cost and benefit. The systems of internal control should not cost more than they taste, he said.