India has the second highest number of fraud-hit companies, according to a report by global advisory firm Kroll.
Theft of physical assets or stock was the most frequent (27%) type of fraud reported.
The report is based on interviews of 800 senior executives worldwide, including 60 from the country.
The percentage of domestic businesses affected by fraud has fallen from last year’s 84%, she said, adding, “but our experience suggests that while concern for fraud may be falling, fraud is not”.
Domestic companies lose on an average 1.2% revenue due to frauds, significantly higher than global average of 0.9%, the report said, suggesting that companies continue to develop strong and well-organised internal controls.
Moreover, 22% of local firms weakened their internal controls frequently as a result of budget constraints, one of the highest figures of any country.
According to the report, 50% of respondents here consider themselves vulnerable to corruption and bribery-related frauds, more than any other type of fraud.
This article originally appeared on rediff
