The 2016 ACFE Report to the Nations on Occupational Fraud and Abuse provides an analysis of 2,410 cases of occupational fraud that occurred in 114 countries throughout the world.
What is corruption?
The Prevention and Combating of Corrupt Activities Act defines corruption as being:
“Any person who directly or indirectly, accepts or gives or agrees or offers to accept or give, any form of gratification from any other person, whether for the benefit of themselves or for the benefit of another person in order to act personally or by influencing another person to act, in a manner that amounts to the illegal,
- misuse or selling of information or material acquired in the course of the exercise,
- carrying out or performance, of any powers duties or functions that amounts to the abuse of a position of authority a breach of trust; or the violation of a legal duty or a set of rules;
that is designed to achieve an unjustified result; or any other unauthorised or improper inducement to do or not to do anything.”
The question often arises whether a CFE (or any other forensic auditor or investigator) has a duty to report irregularities discovered to the Police or prosecuting authority. This article serves to address the situations in which the CFE or investigator will have a duty to report fraud, theft or corruption.