Fraud plans missing in action

Although many companies tout the benefits of having a coordinated approach to preventing fraud, a lot don’t even have an anti-fraud plan in place, according to a new poll by Deloitte Financial Advisory Services LLP.

In the poll, which included about 1,200 internal auditors, financial policy and risk managers in various industries(mostly in the US), nearly half said their organization’s focus on fraud mitigation had increased in the past 12 months. While 49% of those surveyed confirmed having a coordinated and comprehensive approach to deterring, detecting and preventing fraud, almost 36% said their company has no such program. And although 28% said their organization would benefit from a more robust fraudrisk assessment, fewer than 5% believed enhanced fraud help lines and whistleblowers would reduce fraud risks.

“Our poll indicates that many companies believe they could be doing more to address the fraud risk problem,” says Bruce Gavioli, a partner in Deloitte’s FAS’s Forensic & Dispute Services practice. “If companies are not thinking about fraud in their business, chances are someone else is and fraudsters can have a significant impact on the bottom line and reputation of the organization.”

According to the responses, 27% of those polled indicated that the overall responsibility for their company’s anti-fraud program and controls rested with the CFO or the CEO. Fewer than 15% said the task resided in an audit committee.