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You Could get Fired?

According to a report by the Association of Certified Fraud Examiners, most fraud is uncovered through tips (34% of cases) and by chance (25%). The fact that the discovery of fraud is largely unpredictable indicates that organizations that want to uncover fraud need “to do a better job of designing controls and audits to identify fraud”, according to the report. In another study, it is suggested that there may be changes taking place in how fraud is uncovered. The National Bureau of Economic Research found that since SAS 70 took effect in 2005, employee reports of fraud have declined as a source for discovering fraud, while during the same period the percentage of corporate fraud and commercial collections that was uncovered by audit companies has jumped fourfold–to nearly 30%. Apparently employees are less inclined to blow the whistle and perhaps with good reason. It was found that in nearly 80% of the cases where the identity of the whistleblowers is known, they either got fired, quit or experienced changes in the nature of their jobs.

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