2013 Asia-Pacific Fraud Survey
Building a more ethical business environment
Asia-Pacific’s rapid growth markets clearly present a unique opportunity to reap significant revenues. However companies are exposing themselves to unnecessary risks of fraud, bribery and corruption by overlooking the importance of proactive measures, localizing policies and communicating top-down commitments.
Asia-Pacific markets are expected to play a leading role in the global economy. Companies in these local markets need to deploy effective compliance programs and tools to mitigate the risk of unethical practices.
In our Asia-Pacific Fraud Survey, we asked 681 executives, senior managers and working-level employees across eight countries 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.
- 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.
- Fraudulent practices are on the rise, and there is a disconnect between the policies that are in place and how they are applied in practice.
“A key question for companies in Asia-Pacific, given the climate of economic austerity, is how to effectively mitigate the risk of unethical practices.”
- Chris Fordham, Managing Partner of Asia-Pacific of EY Fraud Investigation & Dispute Services
In this report, we further discuss our survey results across the following topics:
- Asia-Pacific risk landscape
- Prevention and detection tools
- Risk mitigation actions
- Country highlights
The Asia-Pacific Fraud Survey is commissioned by EY and carried out by Asia Risk, which polled 681 executives, senior managers and working level employees from March to May 2013 across the Asia-Pacific area comprising of Australia, China, Indonesia, Malaysia, New Zealand, Singapore, South Korea and Vietnam.
The polling sample was designed to elicit the views of staff with responsibility for tackling fraud, bribery and compliance matters at multinational corporations, domestic companies and state-owned enterprises across sectors including Oil & Gas, Financial Services, Technology, Private Equity, Retail, Hospitality, and Mining & Metals.