Raising compliance bar to battle fraud and corruption in 2017, says EY
Mumbai, Dec 16 (IANS) The demonetisation drive, introduction of new regulations such as the Bankruptcy Code and push toward a digital economy could quash fraud and corruption by raising compliance standards even though these moves have had impact on businesses and consumers, according to a report.
Forensic Outlook 2017, released by EY Fraud Investigation and Dispute Services on Thursday, has highlighted key trends which will enable companies to enhance compliance, stimulate business growth and redefine the Indian business diaspora.
In India, the crackdown on bribery and corruption has been through improved reforms such as the recommendations suggested by the Rajya Sabha Committee for the Prevention of Corruption Amendment Bill 2013, demonetisation drive to uncover unaccounted black money, upcoming Goods and Services Tax (GST), Income Disclosure Scheme and many others.
In 2017, the battle against corruption is expected to accelerate as India strives to keep pace with global standards, the report said.
“While the short term situation could be challenging, these moves have the ability to quash fraud and corruption, raise compliance standards, focus on individual accountability and increase investor confidence in the long run,” it said.
“With cases of fraud and corruption on the rise, companies need to enhance the state of compliance through robust internal controls, due diligence processes and integrity trainings for internal and external stakeholders. The use of technology will be a key factor to strengthen anti-fraud and anti-corruption frameworks and mitigate fraud, waste and abuse,” said Arpinder Singh, Partner and National Leader, Fraud Investigation & Dispute Services, EY India.
The report said government initiatives, strong domestic demand and rapid inflow of foreign direct investment (FDI) led India being on an upward growth trajectory this year.