Many Companies Have Formalized Antifraud Programs and Controls
Few Are Prepared for Regulatory Investigations

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FEBRUARY 2007 - A majority of companies have instituted formal antifraud programs and controls in light of today’s heightened regulatory environment, according to an online poll conducted by Deloitte Financial Advisory Services LLP. Approximately 75% of respondents stated that their companies have antifraud programs and controls designed to deter, detect, and prevent fraud. But only 13% indicated that their companies have a regulatory response team in place.

The survey’s approximately 500 participants included senior-level financial executives, such as CFOs and controllers, during a 2006 webcast titled “What to Do When the Regulators Come Knocking at Your Door.” The executives primarily represented the energy, financial services, and manufacturing industries.

A partner in Deloitte FAS’s forensic and dispute services practice who co-presented the webcast noted that companies are increasingly recognizing and beginning to tackle this important issue, but for most companies the challenge becomes one of execution.

Other key results to the webcast poll included the following:

  • Almost 60% of the respondents indicated that they believe that the number of internal and external investigations related to financial accounting issues will increase over the next two years.
  • 46% of the respondents reported that their companies had responded to an SEC or Department of Justice inquiry.
  • Almost 36% of the respondents indicated that, to the extent their companies had conducted an internal investigation on financial statement issues, such an investigation did not result in any findings of accounting irregularities.




















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