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Unformatted text preview: Is There Still FRAUD? Based on the Association of Certified Fraud Examiners (ACFE) 2010 Report to the Nations on Occupational Fraud & Abuse By Carol Scott, CPA, MBA Vice President - Business, Industry and Government, AICPA Not a day goes by it seems that we dont read or hear about fraud especially during this weak economic and uncertain period. Fraud is happening in companies of all sizes and types and what is concerning is there doesnt seem to be a let up. Every two years the Association of Certified Fraud Examiners (ACFE) conducts a survey among its members on occupational fraud that he or she had investigated during the preceding two-year period. The most recent survey covered the period between January 2008 and December 2009. It shows that fraud occurs in all types of organizations (e.g., over 42% occurred in private companies, over 32% in public companies, over 16% in government and over 9% in not-for-profit). Here are some facts from this most recent study, which contained over 1,840 cases. 1. It is estimated that the typical organization loses 5% of its annual revenue to fraud. If we apply that to the estimated 2009 Gross World Product of $58.07 trillion, this translates to a potential total fraud loss of over $2.9 trillion. Fraud losses come directly off the bottom-line so you need to think about how much in additional sales your company would need to get back that 5%. 2. In the ACFE study, over 23% of the frauds investigated by its members involved losses of at least $1 million....
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This note was uploaded on 02/26/2012 for the course ACC 575 taught by Professor S during the Spring '12 term at Syracuse.
- Spring '12