Ten Things About Financial Statement Fraud – Second Edition
A review of Securities and Exchange Commission enforcement releases
Despite stringent historic legislation aimed at combating fraud such as the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act – and despite enforcement efforts by the Securities and Exchange Commission (SEC) and the Department of Justice – financial statement fraud remains a public concern.
But just what types of fraud is the SEC describing in its enforcement actions? In what industries are frauds most prevalent? Have fraud types and industry patterns changed over time? Edition 9 of ForThoughts examines these questions.
To learn how fraud schemes have evolved since 1999, the Deloitte Forensic Center analyzed and reported on hundreds of SEC enforcement releases issued from 2000 through 2006, and has now expanded our research to include SEC enforcement releases brought in 2007 in the “Ten Things About Financial Statement Fraud – Second Edition.”
“With economic conditions putting unprecedented pressure on companies and their employees, instances of fraud are likely to increase,” said Toby Bishop, director of the Deloitte Forensic Center. “Boards of directors and audit committees with oversight responsibilities would be wise to update their fraud risk assessments where appropriate and consider re-evaluating anti-fraud measures as the consequences of fraudulent activities can be very costly for companies and investors. An ounce of fraud prevention is worth a pound of cure.”
|Ten Things About Financial Statement Fraud – Second Edition
The Deloitte Forensic Center explores how fraud schemes have evolved since the first edition.
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