Corporate frauds: 40% increase
Many corporate frauds could be prevented if the companies pay heed to the complaints from their clients and employees, according to Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry.
In India, every third company is facing internal or external fraud, he said while stressing at seminar on Forensic Audit and Fraud Detection.
Aggarwal expressed serious concern over 40% increase in corporate frauds, starting from Satyam case in 2007 till now. This has shaken the corporate sector.
The Seminar was organized by the Corporate Affairs Committee of PHD Chamber on 20 December 2019.
Speaking at the seminar, Chief Guest, Dr Navrang Saini, Whole Time Member, Insolvency and Bankruptcy Board of India (IBBI), emphasised on the importance of steadfast adherence to rules, regulations and procedures by the auditors and forensic auditors.
In the frauds, ranging from Satyam to Karvy, the role of auditors has come into question, said Dr Saini.
He further added that non-adherence to certain principles and accounting procedures can often lead to scams and auditors must go through them very thoroughly.
Referring to the regulatory ecosystem in the country, Dr Saini stressed that rules, regulations and procedures have been strengthened with the enactment of Insolvency and Bankruptcy Code (IBC) in 2016.
Since its mandate, the formation of IBBI and its working has resulted in sea-change in behaviour of the corporate sector and the society as a whole.
Now, the banks do not have to chase the corporate debtors, but the corporates try their best not to be declared as NPAs, he said while referring to IBC as the game-changer.
Naveen N D Gupta, Chairman, Corporate Affairs Committee, PHDCCI, said that the recent frauds in the corporate sector has impacted the country and added to slowdown in the growth.
To build a new India, the corporate sector, as engine of growth, must work jointly with regulators to ensure a fraud-free journey, he underlined.
Technical sessions at the seminar were held on Implementing a Fraud Risk Management Programme, Digital Forensics – Overview & Introduction and Developing the Forensic Report and Related Exhibits. fiinews.com