In this second of a two-part series on how external auditors may fail to detect fraud, Angela Clancy and Jay Dawdy relate a case study where audit standards appeared to have been complied with; yet through weak understanding of the structures involved and lax selection of review documentation, a scam was permitted to fester.
A special European Parliament (EP) committee has called for criminals convicted of serious crimes, including corruption and money laundering, to be banned from tendering for any public contract within the European Union (EU) for at least five years.
One in five employees witnessed financial manipulation in their company in the 12 months to December 2012 according to a survey covering Europe, the Middle East, India and Africa by Ernst & Young. The figure rises to 26% for rapid growth markets.
A European Parliament committee has tabled amendments that would supercharge draft European Union (EU) rules to make it easier for national authorities to freeze and confiscate criminals’ assets across borders within the 27 country bloc.
If the European Anti-Fraud Commissioner Algirdas Šemeta is right to claim, as he did in evidence to the House of Lords European Union Committee , that EU funds aren’t any “more prone to fraud than national budgets”, then, based on the UK National Fraud Authority’s estimate of losses in the UK public sector of 3.4%, total fraud against EU finances should amount to €4.82bn, more than 10 times the Commission’s own estimate of €404m (all 2011 numbers).
OLAF, the European Union’s (EU) anti-fraud office, has hit out at what it says are attempts to convey “a false impression” of issues around the investigation of former European health commissioner John Dalli, amid unproven suggestions of corruption.
Giovanni Kessler, embattled director general of European Union (EU) anti-fraud agency OLAF has rejected a fresh call to resign in the mounting furore over claims the agency used illegal wire taps in the case of former EU health Commissioner John Dalli, who resigned over allegations of conflict of interest involving a tobacco firm.
Corruption costs the European Union (EU) €323 billion a year, three times more than previous estimates, a study by the Hertie School of Governance in Berlin, Germany, and the Brussels office of Germany’s Bertelsmann Stiftung (Foundation) suggests.
The president of Spain’s Andalucía regional government, Jose Antonio Griñán, has been accused publicly of being a key figure in a €130 million-plus scandal involving allegedly fraudulent use of Spanish public and European Union funds.
Joining concerns raised by other European Union states, Romanian President Traian Basescu has urged the prime minister to dismiss two ministers facing graft charges so the country can be accepted as a member of the Schengen passport-free zone.
Greg Mason of Forensic Risk Alliance provides commonsense advice on fraud, corruption and compliance for cloud computing users.
The UK Government has cyber security on its agenda: in March it launched a cybercrime unit to tackle the threat, while the previous month saw Prime Minister David Cameron visit India to strike a cybersecurity partnership with the popular outsourcing jurisdiction. Now it’s companies – who face breach reporting obligations and potential fines in future – that need to shore up their defences, writes Esther Martin.
Tax evasion costs the UK economy a towering £14 billion a year – up to 20% of which is tucked in the pockets of scheme promoters. Tessa Lorimer of GSC Solicitors clarifies the often misunderstood boundary between tax planning, avoidance and fraud.
FINANCIAL CRIME NEWS
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