The current Canadian economy is quite uneven, with organizations in many parts of the country under significant financial stress. When organizations are under financial pressure, there will usually be increased pressure to conserve through the close management of costs. This can mean staff reductions as wages are usually a major component of operating costs. With a reduction in employees, operating capacity will be affected as will the extent and effectiveness of important processes and controls.
Experience suggests that companies do not always fully appreciate that in such circumstances there can be an increase in the risk of fraud. Of course, this increased risk of fraud has a direct impact on how internal auditors plan and execute their audit programs.
Paul Ross, a partner in KPMG Forensic with over 25 years of experience investigating fraud, will discuss this increased risk and its impacts, and provide practical advice on how to respond to this increased risk.