Fraud reports by the big accountancy firms are prolific in India, but there are limits to the information produced and fears that much corruption is still going unreported
(This article was first published in the May 2013 International edition of Accounting and Business magazine.)
It is clear that accountancy firms in India consider fraud a significant and continuing problem. The country’s newspapers are quick to highlight increasingly regular fraud reports, with articles carrying headlines such as: ‘Corporate India still napping on fraud prevention: KPMG study’; ‘India Inc worst affected by frauds after Africa: Kroll report’; ‘Investors are biggest sufferers of frauds: Ernst & Young’; and even ‘Cos feel frauds are “inevitable cost” of doing biz: KPMG’, to name a few.
Given the weaknesses in Indian law enforcement regarding the investigation and prosecution of fraud and the ever increasing social pressure to get rich quickly, fraud remains a constant danger to businesses. ‘The confidence of international investors and domestic entrepreneurs has been low in the last two years, thanks to the various scams that have come to light during this period,’ says the introduction of KPMG’s India Fraud Survey 2012. - read more-
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