Financial and Corporate Frauds

The Indian market offers a plethora of opportunities for MNC’s exploring inbound investments. It also offers opportunity to local companies looking to expand overseas. However, understanding the fraud risks inherent for conducting business in India and outside is critical for the survival of the planned operations.
The past decade has witnessed an upsurge in the number of organisations facing cases of fraud. Hence, to address these emerging challenges, a fine tuning of legislative reforms, building strong and adequate internal control systems and cyber security measures, and internal/external audits, is required on a regular basis.

Grant Thornton has released a white paper, Financial Frauds and Risks at the 3^rd National Conference on Financial and Corporate Frauds “Risks, Challenges & Preventions” organised in New Delhi on 1 July 2016. Industry chamber, Assocham organised the event. Grant Thornton was the knowledge partner for the event.   

The white paper provides an insight on various anti-fraud resources, knowledge and tools along with the best course of action available to win over prospective frauds in the organisations. Some key highlights from the report are:

• Though the frequency of the financial statement frauds has been less, their impact is massive.
• The damages occurring on account of frauds can be reduced by mitigating the risk factors associated with the businesses.
• Formulating a strong anti-fraud programme and a robust compliance whistleblower mechanism, use of data analytics, due diligence on third parties and adopting better technology to check the risks are some of the ways to limit the frauds.