The prevention and detection of corporate fraud: An assessment of the present framework

Abstract

This paper examines the current framework in the UK for the prevention and detection of corporate fraud, in the light of recent figures which demonstrate that losses from reported fraud far exceed losses from other kinds of theft. The responsibilities of external auditors and corporate management for preventing and detecting fraud are explored, as is law enforcement in regard to fraud. The paper concludes that the overall framework is weak and that given the escalation of fraud levels, the Government ought to conduct a full review of the roles of auditor and management and the state of law enforcement in this area.

Citation

McInnes, W.M. and Stevenson, J.E. (1997), "The prevention and detection of corporate fraud: An assessment of the present framework", Journal of Financial Regulation and Compliance, Vol. 5 No. 4, pp. 331-339. https://doi.org/10.1108/eb024943