Johannesburg, 16 Oct 2002
Audit and advisory firm, Ernst & Young South Africa will launch its eighth Global Fraud Survey in November. The purpose of this survey is to provide information on trends in the nature and incidence of fraud, both over time and over geography.
"Fraud has been around for a long time," says Mike Savage of Ernst & Young South Africa. "At Ernst & Young we view its current high as part of a healthy process. As governance workings become increasingly transparent to stakeholders, we hope that fraud will be exposed more and more, until the risk of discovery becomes a significant deterrent."
He says recent global corporate scandals have clearly demonstrated the potential for abuse. "Moreover, many managers have never been exposed to a recessionary environment and lack the skills and expertise to deal with the associated risks," he adds.
"Fraud has been moved firmly onto the agenda of those charged with governance. Public outcry has sent a clear message. Failure to recognise the issue and deal properly with the consequences can and will be punished by stakeholders.
"The study also discusses the Internet and connected economy`s impact on fraud," adds Savage.
"Prospective fraudsters have access to additional opportunities and more knowledge via the Internet. Barriers such as national jurisdiction, evidence admissibility and outmoded investigative competencies have made electronic crime increasingly attractive. The study illustrates how computer forensics can be used as an effective tool in almost every investigation."
Ernst & Young publishes a fraud survey every two years. This, the eighth survey published to date, was co-ordinated on behalf of Ernst & Young by Mike Savage of the South African practice.
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