Respond to allegations of fraud and illegal acts

Fraud does more than dilute the bottom line: it betrays shareholder trust, erodes employee morale and mars public perception of your brand. Without mechanisms in place to counter financial wrongdoing by insiders, the fallout can give stakeholders serious, perhaps relationship-ending misgivings and jeopardise your business. But prosecuting isolated acts of malfeasance falls short of the mark. A superior strategy scrutinise areas susceptible to exploitation from the ground up, identifies their inherent vulnerabilities and eliminates opportunities to exploit them.

 
What rationalisations might open your operations to inside threats?
  • Everyone pays bribes to make sales in that country; there is no other way.
  • Cooking the books or 'creative accounting' is not fraud; it’s just bending the rules.
  • I’m the only one left in my department after redundancies. I have to do all the work and haven’t had a raise in two years. I deserve the money!


Do you know the hidden attitudes that can sabotage your efforts to operate effectively in a secure environment?

 
Estimated revenue loss attributable to fraud


5%


All too often, fraud is discovered too late. In some cases, its damage is irreversible. Managers should never take the entity's security for granted. Compliance with regulatory requirements is not enough, and internal controls, susceptible to collusion within the organisation, can be circumvented, creating further vulnerabilities. PwC's Forensic Service professionals help neutralise such threats to keep fraud in check.