Technology can prevent corporate fraud: PwC

48 per cent of Indian companies lack knowledge of software data tools

PTI | July 26, 2010



Effective use of technology for in-house audit processes could help prevent accounting fraud in a company, as it will be easier to monitor the flow of data online, says global consultant PricewaterhouseCoopers.

A new PwC report, '2010 Internal Audit State of the Productivity of the Profession Survey', said that about 48 per cent of Indian companies lack skill and knowledge of data tools used in internal audit softwares, while 18 per cent have no access to these tools.

"With a predicted increase in scope and responsibility and heightened focus on risks, it is essential that internal audit functions prioritise focus, employ smarter resourcing and skill models and use technology as an enabler," PwC India Executive Director Satyavati Berera told PTI.

However, a number of internal auditors in India are not convinced that technology has a measurable benefit, with 38 per cent of the respondents to PwC's survey unable to calculate the benefit.

Of the companies that saw benefits in the use of information technology, 38 per cent said it provides greater coverage, 28 per cent talked about targeted risk testing, 18 per cent were eyeing efficiency and 17 per cent were keen on the ability for continuous monitoring, the study said.

PwC suggested that companies can initiate a pilot project for a technology-enabled audit methodology or audit lifecycle so that an assessment can be made about the opportunity for technology to enhance and streamline that process.

"It is important for raising the performance bar because this year's survey results indicate that auditors at present are not convinced that technology has a clear benefit," PwC said.

The role of internal audit processes hold significance in India in the aftermath of the Rs 10,000 crore accounting scam at Satyam Computer Services that was brought to light in January last year by the IT firm's founder and the fraud's perpetrator, B Ramalinga Raju.

The firm's internal audit team head V S Prabhakar Gupta, who is not out on bail, was booked by the CBI for being party to the crime -- the largest in India's corporate history.

 

Comments

 

Other News

Cabinet approves museum at North-South Block complex

The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, on Wednesday has approved the development of the Yuge Yugeen Bharat Museum (YYBM) at the North and South Block Complex, New Delhi, at an estimated total project cost of ₹3,230 crore, as appraised by the Public Investmen

Cabinet approves extension of Noida metro corridor

The Union Cabinet, chaired by prime minister Narendra Modi, has approved the extension of Aqua Line Metro Rail Corridor from Noida Sector-51 to Greater Noida Sector-04 of Noida Metro Rail Project with corridor for a length of 8.449 km with 5 elevated stations. On operationalization of this corridor, Noid

India reaffirms commitment to climate multilateralism

India has reaffirmed its commitment to climate multilateralism and the principles of Equity and Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC), calling for a fair, equitable and ambitious outcome at the 31st Conference of the Parties (COP31) to the United Nations Framewo

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter