Most Fraudsters Exploit Weak Internal Controls: Report

Law360, New York (June 21, 2011, 7:21 PM EDT) -- In nearly three-fourths of all corporate fraud cases, perpetrators are able to exploit weaknesses in internal control programs in order to commit their crimes, according to a new study by audit and tax firm KPMG LLP.

The analysis, released June 14, found that 74 percent of the fraud cases it studied were enabled by weak internal programs that perpetrators were able to take advantage of — up from 49 percent in KPMG's last such study in 2007.

The findings likely stem from companies' decisions to cut...
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