Comparison Between Kpmg Integrity Study Of 2005-2006 And Acfe Report To Thenation

In my comparison between KPMG integrity study of 2005 2006 and ACFE 2006 report to the Nation, I found both reports to have very different styles. The ACFE report concentrates on the organization as a whole. It focuses on how occupation fraud is committed and the effect that it has in the organization. Based on ACFE-2006 report findings, "the typical organization loses 5% percent of its annual revenues to occupational fraud, roughly $652 billion lost to fraud. " KPMG report focuses on the individual in the organization, to who would they report fraud activity to. Both organizations did reported a decrease in occupational fraud and both, discusses how to prevent crime and the reasons why many employees commit fraudulent activity.

One significant difference between both reports is in the collection techniques . ACFE used professional Fraud examiners to answer a survey of 77 questions about big cased that they previously investigated within two years time period. 1,134 cases were used; They wanted to focus on cases that had caused the biggest financial damage to organizations. The data that was collected had information as to what were the damages that the organization suffer, the consequences of the person who committed the crime, the level of the position, how was the crime reported , and for the cases that were not reported, what were the reason for not reporting it to the police.

KPMG used an independent survey research firm to collect their information from the regular working person. The selection was based on the industry and the organizations size. They use information from people that were in different levels and had different job responsibility within different organizations. The individuals had to work for an organizations that employed at least 200. KPMG send out 6,797 surveys and used only 4,056 in the research.

One of the similarities between these two reports is that both, the AFCT and the KPMG concluded that organizations that have ethic and compliance programs in place, are the organizations that have the least financial losses. Organizations need to educate their employees on how to detect fraud and what to do when they encounter it. There is a higher chance of fraud being detected by an employee. Both reports emphasize the importance of having a hotline. It gives options to the employees to remain anonymous and it encourages them to report any misappropriate activity.

The ACFE in their investigation noted that " 44 % of the a million dollars were detected by tips."

In the cases that they reviewed, companies that had anonymous fraud hotlines suffered a loss