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A KPMG Canada survey report:

 KPMG’s Forensic division of Advisory Services, prepared a report that surveyed executives of Canada’s largest companies on the topic of people who had defrauded their company.

The report explores who commits fraud, how the fraud is carried out, and what factors lead someone to commit fraud.

KPMG Forensic recently published Profile of a Canadian Fraudster: To read more see the following link: Profile of a Canadian Fraudster

 Based on a survey of executives from Canada’s largest companies. Designed for business leaders, it provides insight into situations where fraud may have occurred and builds a profile of those most likely to engage in such activity.

A few key findings from the report include:

  • Almost three-quarters of frauds were carried out by men
  • Most fraudsters (69 percent) were between the ages of 30 and 49
  • Fraudsters were employed most often in operations (45 percent), accounting (14 percent), and procurement (7 percent) groups within their companies
  • The three main factors reported as leading to fraud were personal need (28 percent), opportunity (19 percent), and greed (14 percent

 What can be done to protect and detect it?

 As a result of Sarbanes-Oxley and Bill C 198 legislation, introduced both in the USA and Canada, companies are looking at Entity-Level-Controls to help prevent and detect fraud.

The Entity Level Controls that have a major impact in the detection and prevention of fraud:

1. An Effective Whistleblower hotline

2. A robust and properly implemented code of business conduct

3. A consistently applied and thorough system to pre-screen new hires.

Discussion Questions:

1.Do you agree with an effective policy of screening applicants before hire, in order to reduce fraud?

2. How effective is a business code of conduct in preventing fraud?

3.  Discuss which factors you believe lead to fraud , Personal need, opportunity or greed?

Information taken from KPMG website: You may download the complete report.









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