FRAUD: Know How To Steal The Managers In Their Companies And How They Defend

Spain: The Next Reform of the Professional Code will introduce two new figures crucial to protect businesses from theft committed by its managers on the assets of the company and define the responsibility of society when it has not taken steps to prevent it. It is the professional liability of legal persons and of bribery and corruption in private companies, two major developments. Along with these measures in Parliament is also preparing the transposition of two EU directives (on audit and oversight) that substantial changes on the liability of the company for abuses by managers and employees. Javier L pez, director of Forensic Services (research service internal fraud committed by management) of PricewaterhouseCoorpers (PwC) said that “these measures will increase the accountability of audit committees of companies that now have a control function, but that after its entry into force will be responsible. The minority shareholders have against whom claim if the company has suffered a deterioration in domestic economic crimes. ” Democratization of crime Before it was more complicated than a manager organize a robbery and hid the money, because I had to send it to tax havens and even manage physical documents, but with new technologies such barriers have disappeared. Now, to commit a crime and is only required to observe three conditions: that the opportunity presents itself, there is an incentive and that the manager has the ability to know act. More in than out Although no official statistics, Fernando Lacasa, director of KPMG Forensic, said that 69 per cent of cases, the crime is done by someone in the company compared to 11 percent is external. In 20 percent of cases, however, there is collusion between a person of the company and external. In the robbery committed by top management must not only account for what has been the offender, but the damage it has caused to the company which are generally much higher than the fruit of plunder. So it is not like the type of fraud committed by a manager who was just a servant. The higher more expensive Data from the reports of KPMG explained that “the higher management level, the greater the damage it can inflict and that” starting with tests to see how to justify a sum of money, then, are gaining confidence and looking for weak points security controls, and increasingly act with greater impunity. ” The firm size is important, since the larger the organization managers more thefts occur. “The longer lead managers in the company and more have risen to the top more possibilities of committing a fraud,” said Lacasa. Therefore, stresses the importance of preventive research protocols. With electronic signature technology or digital watermarks, reflecting an effective system to prevent counterfeiting and fraud in the transaction certification system, it is very difficult for an employee to make changes. What is needed, therefore, greater responsibility for perpetrating a fraud. Lacasa estimated that 49 percent of executives surveyed by KPMG checks were skipped because it was they who established them and also did not recover more than 10 percent of the money. Sense of impunity Moreover, there is a sense of impunity among senior officials, since these levels most companies still think it’s best to wash dirty linen at home or to reach an amicable settlement and far less noisy and publicized. Ricardo Norena, Forensic partner in charge of Ernst Young, says it is very difficult to condemn a manager who has committed a crime against your company, because most judges do not understand electronic evidence and not accept it. In the same vein, Juan Jesus Valderas, responsible partner at Deloitte Forensic believes “there are technical solutions to uncover the perpetrators of crimes within the company, but when we can work with the assurance that the digital proof will be in account.

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