Corporate Frauds: India Inc.'s Response
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Code : GOV0032
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Region : India |
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Corporate Frauds in India Inc With many Enron-like cases, the corporate sector in India faces the highest threat with 42% of the companies experiencing fraud as compared to the global rate of 27%.15 Increase in fraud rates is amajor concern among companies. In India, the corporate sector is plagued with several kinds of frauds. Often, companies in India have become victims of swindling practices like suppliers’ kickback (similar to bribes but are paid after the deal is finalised like for example, paying a gift or benefit once the supply contract is in favour of the company), corruption and bribery. In India, business relationships and success do not depend completely on product or service quality, efficacy and price... Corporate Frauds: India Inc.’s Response To combat fraud, several organisations in India feel that early detection is important. According to PWC survey, 99%of the respondents have incorporated internal controls, internal and external audits, compliance programmes and code of ethics to control fraud.31 Internal controls are considered the best detection method as 36% of frauds were detected through internal controls . This is followed by anonymous letters, conducting periodic audits and account review, anonymous hotlines, restricting access to premises or assets, etc... |
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