'Most auditors have witnessed fraud'

News Article - 16 July 2007
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The majority of audit partners have encountered fraudulent activities among their clients at some point in the last ten years, a study has shown.

Research conducted by accountancy firm Grant Thornton highlights that nine in ten partners have witnessed fraud, yet only ten per cent of cases have been made public.

Most of the incidences were discovered via internal controls, while about a third of cases were uncovered by external auditors. Some ten per cent were found as a result of employee detection.

The accountancy specialist is now calling upon auditors to open up about their experiences in a bid to aid firms in eradicating fraud.

Steve Maslin, the company's head of external professional affairs, said: "The number of frauds which emerge in the public domain is merely the tip of an iceberg.

"Beneath the surface are numerous frauds that, while still damaging, are caught in a timely fashion, typically within a year."

Merseyside Police states that many instances of fraud go unreported because of unwelcome publicity generated by an investigation.

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