The international accounting firm Ernst and Young recently performed a global survey. The results of that survey are summarized in a report titled “Fraud: The Unmanaged Risk.”

You can find this report at www.ey.com/global/download.nsf/Belgium_E/8th_ Global_Fraud_Survey/$file/EY_8th_Global_Fraud_Survey.pdf (or go to www. wiley.com/

college/kimmel).

Instructions Read the Key Findings section, and then skim the remainder of the report to answer the following questions.

(a) Examining the graphs presented under the heading “General Fraud Experience,” what percentage of respondents experienced a significant fraud during the year? Do the findings differ by geographic region?

Broadening Your Perspective

(b) What percentage of frauds does the report estimate are actually both detected and made public by companies?

(c) How did respondents rank various factors in terms of their ability to detect fraud and prevent fraud?

(d) What percentage of employees committing fraud are part of management? Are new managers more or less likely to commit fraud?

FINANCIAL ANALYSIS ON THE WEB