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New Guide to Financial Fraud Reveals Early Signs of Unlawful Corporate Actions

Published by CCH, guide will help senior management, advisors recognise signs of fraud before they become an issue

Corporate and financial fraud remains a massive issue for the economy and wider society, with costs to the UK alone estimated to be a jaw-dropping £20 billion or more each year. In a recession it is probable that fraud will become a bigger issue as financial pressures on companies and individuals increase.

Corporate and Financial Fraud is a new book written by David Luijerink, director at KPMG Forensic. It is published by CCH, the UK’s leading tax and accounting information provider, part of Wolters Kluwer.

“Fraud and the methods adopted by perpetrators are evolving at an astonishing rate. They are becoming more complex, cross-border and sophisticated,” says David Luijerink. “It is an underlying risk in every aspect of business life and management should see combating fraud as one of their key objectives.”

This practical guide has been produced to help senior management and their professional advisers recognise the signs of fraud and the actions of fraudsters before they become an issue. At the same time it provides guidance on dealing with fraud when it happens.

The book contains significant material on understanding types of criminal, with a particular focus on insider and white-collar fraud, IT abuse and the threat from organised crime.

Key highlights in the book to help management spot the signs of fraud include:

Autocratic management style: The dominance of a chairman or chief executive has been a major factor in many frauds, the book reveals. The tell-tale signs include frequent overruling of senior management by a chairman or CEO, the absence of meaningful debate at board level or the exclusive control over a significant part of a business by a single director.

Bonus culture: In the case of performance-linked compensation, senior management may be reluctant to ask probing questions about the basis and quality of profits when staff appear to be making a great deal of money for a company.

Cronyism: A proliferation of grey areas covering expenses, entertainment, gifts, commissions and conflicts of interest – where there are no clear positive corporate ethics – creates endless opportunities for fraudsters. Yet the ‘profits’ of a company may be based on bogus deals, often the result of cronyism and cosy supplier relationships.

Corporate and Financial Fraud by David Luijerink is published by CCH at £65.00 plus £5.50 p&p. ISBN 978 1 84140 851 4. To order a copy, telephone 0844 561 8166.

Notes to editors
The book’s author, David Luijerink, is available for comment. Please contact Mark Hamilton, UK Corporate Communications, KPMG LLP, on 020 7694 2687.

A review copy is available on request.

About Wolters Kluwer
Wolters Kluwer is a leading global information services and publishing company. The company provides products and services globally for professionals in the health, tax, accounting, corporate, financial services, legal, and regulatory sectors. Wolters Kluwer has annual revenues (2007) of €3.4 billion, maintains operations in over 33 countries across Europe, North America and Asia Pacific and employs approximately 19,500 people worldwide. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Visit for information about our market positions, customers, brands, and organisation.

About KPMG
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff.  The UK firm recorded a turnover of £1.6 billion in the year ended September 2007. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148 countries and have more than 113,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services.