The international accounting firm KPMG recently performed a global survey on fraud. The following exercise reviews that survey.

Address: http://www.kpmg.com (or go to www.wiley.com/college/kimmel)

Steps: 1. At the KPMG site, choose Virtual Library.

2. Choose Search Page.

3. Type “fraud survey.”

4. Choose the “International May 1996 Fraud Survey.”
5. Choose Full Text to download the survey. (Your computer will need to be equipped with Adobe Acrobat Reader. Directions for downloading are provided.)
Instructions Answer the following questions: oa

(a) Overall, what percentage of respondents stated that they felt that fraud was a major problem for their business? What percentage of South African respondents said that fraud was a problem for their business? What percentage of French respondents said that fraud was not a problem for their business?

(b) Overall, what percentage of frauds that were detected were detected by internal control?

(c) In which industries was fraud most likely to occur?

(d) When asked about “red flags” that might have forewarned the company of the fraud, 57% said that there were no early warning signs. What explanation does the study give for why so many companies said there were no early warning signals?
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