Accountancy fraud still at a "notable" level

News Article - 21 May 2012
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UK fraud reached its highest level in 12 years during 2007, it has been revealed.

KPMG reports that although accounting fraud figures decreased over the year, there was still a "notable" number of cases.

In one instance, a well-trusted and established Buckinghamshire accountant embezzled £700,000 from a firm after being given a lavish champagne honeymoon party by the company.

Another fraudster used £2 million worth of business funds to buy a number of properties, cars and a new kitchen.

Tackling fraud should be top of firm's business goals this year, said Hitesh Patel, partner at the firm, adding that in the current economic climate, an attempt to control costs is more important than ever.

"As companies tighten their belts in the harsher conditions and take a closer look at their operations and related expenditure, it is highly possible that a greater number of frauds may be detected," he added.

Mike Jervis, partner in PricewaterhouseCoopers' Business Recovery Services practice, recently told Reuters that the economic slowdown is likely to have a significant effect on business performance in 2008, warning firms that "this is not the time to relax".

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