17 May 2021 — Publication
This page gathers the public responses we have received on the two papers Fraud: recommendations to strengthen the financial reporting ecosystem and Going concern: recommendations to strengthen the financial reporting ecosystem.
About the publications
Corporate fraud is a serious issue that affects us all. Its consequences can weaken the public’s confidence in markets and have long lasting damaging effects on society. The COVID-19 crisis has also increased the pressure on companies. This has created new opportunities to commit fraud making companies more vulnerable to corporate failure.
At the same time, when a company collapses, all stakeholders are affected, from employees to investors, and it eventually erodes the public’s trust in financial markets.
We thus re-examine the role of key parties to make the system more resilient: those within the company, external auditors, standard setters, legislators and public oversight authorities. They must take a coordinated approach to achieve tangible results in tackling fraud.
The system should also become better at dealing with and communicating on issues with a company’s ability to continue as a ‘going concern’. Simply put, if it will remain in business for the next 12 months.
These publications present recommendations to strengthen the financial reporting ecosystem. This is especially topical after recent corporate failures, fraud cases and companies getting under pressure due to the ongoing COVID-19 pandemic.