Asia-Pacific Fraud Survey Report Series 2013
Building a more ethical business environment
There is little doubt in most people’s minds that doing business in Asia-Pacific carries with it inherent risks, in particular those associated with fraud, bribery and corruption. As Asia-Pacific markets are expected to play a leading role in the global economy over the next decade, companies need to develop and effectively deploy local compliance programs and tools that can meet global best practice and deal with local challenges to help tackle complex fraud, bribery and corruption issues.
In our Asia-Pacific Fraud Survey, we asked 681 executives, senior managers and working-level employees across eight countries (including Australia) about their perceptions of fraud, bribery and corruption. We also explored what efforts are being taken successfully to mitigate those risks.
Our Asia-Pacific Fraud Survey echoes the findings in our most recent Europe, Middle East, India and Africa Fraud Survey and our Global Fraud Survey, that the challenging economic conditions in Asia-Pacific have increased the risk of unethical practices. Some key regional findings include:
- Weak systems and controls are exposing companies in Asia-Pacific to significant risks as internal controls and compliance programs are not implemented as thoroughly as they should be.
- The slower growth environment is putting management under pressure to take short cuts by, for example, misstating financial statements to meet targets.
Australian survey highlights
|70%||of respondents in Australia said the best way to proactively detect fraud is with stronger government regulations.|
How to proactively detect fraud
Other key themes emerging for our local region include:
- 60% of employees are willing to step forward and speak out about instances of misconduct
- 75% of Australian respondents do not appear to operate a whistleblowing program
“We have done a lot of work with companies on the reactive side, on policy setting and educating senior company officials. However, there still needs to be more focus on the monitoring and use of forensic data analysis to mitigate fraud risk.”
Paul Fontanot, Managing Partner Australia & New Zealand, EY Fraud Investigation & Dispute Services
Discover more by accessing the full Asia-Pacific summary of Volume One of the Asia-Pacific Fraud Survey Report Series 2013 Building a more ethical business environment.