PwC finds control weaknesses at SocGen

PwC finds control weaknesses at SocGen

Controls that would have revealed fraud at SocGen were'lacking'

A report by PricewaterhouseCoopers has pointed to problems in the design and
implementation of French bank Societe Generale’s control system.

‘Several key controls that could have identified fraudulent mechanisms were
lacking,’ the report stated, adding that the procedures linking the different
levels of checks were insufficient.

The chairman of the bank Daniel Bouton admitted that the bank’s internal
controls had faults.

‘The controls were carried out in accordance with the rules for each area
concerned.

‘But “a horizontal method for assessing the risk of fraud, (and) a pooling of
the information, was missing.

‘It was the lack of this method that allowed Jerome K to play on the
different deficiencies, which his experience in the back-office had
enabled him to see,’ Bouton said.

The bank lost more than seven billion dollars earlier this year, which it
said were a result of rogue trading by Jerome Kerviel, AP reported.

Kerviel has since been charged with breach of trust, fabricating documents
and illegally accessing computers.

He is currently out on bail and has denied the charges, instead alleging that
his managers knew about his massive deals and that he has been made a scapegoat.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource