Nine out of ten auditors witness fraud
Most fraud discovered after only one year, but only 10 per cent made public
Nine out of ten UK audit partners have witnessed some form of fraud at their
clients during the past 10 years.
But, according to Grant Thornton, only
ten per cent of these are ever made public.
In a survey of auditors, the mid-tier firm revealed that most frauds were
discovered through internal controls (55 percent), followed by external auditors
(33 per cent) and employee detection (10 per cent).
Steve Maslin, Grant Thornton’s head of external professional affairs, said:
‘The number of frauds which emerge in the public domain is merely the tip of an
iceberg. Beneath the surface are numerous frauds that, while still damaging, are
caught in a timely fashion, typically within a year.’
Grant Thornton has called for auditors to share their experiences to help in
all firms combat fraud.