CHAPTER 12Southern Asia

REGIONAL FRAUD TRENDS

The 2018 Report to the Nations on Occupational Fraud and Abuse issued by the Association of Certified Fraud Examiners (ACFE) includes 96 cases from Southern Asia that were investigated between January 2016 and October 2017. These cases caused a median loss of US $100,000 per case.

As noted in Exhibit 12.1, corruption is the most common form of occupational fraud committed in Southern Asia; 62% of the cases analyzed involved some form of corruption, which is more than three times as frequent as any other type of fraud scheme. Theft of noncash assets is the second most common category of occupational fraud, occurring in 20% of the cases in the region. In addition, more than half of the fraud schemes in Southern Asia are detected by a tip, making this the most likely method of detection by far (see Exhibit 12.1).

Bar graph shows corruption, noncash, billing, expense reimbursements, skimming, financial statement fraud, cash on hand, cash larceny, check and payment tampering, payroll, and register disbursements where corruption is highest at 62 percent.

Exhibit 12.1 Scheme Types – Southern Asia

Bar graph shows tip, internal audit, management review, surveillance/monitoring, other, external audit, by accident, account reconciliation, notification by law enforcement, document examination, confession, and IT controls, where tip is highest at 53 percent.

Exhibit 12.2 Initial Detection Method – Southern Asia

The 2018 Report to the Nations also examines the anti-fraud controls that were present at victim organizations at the time the frauds being analyzed were committed. Exhibit 12.3 shows that external audits of the financial ...

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