Ernst & Young have today released their latest EMEIA Fraud Survey.

The survey shows that 50% of Irish participants believe bribery and corruption is widespread in Ireland.

Whilst only 1% of Irish respondents stated they would deliberately misstate their financial position, when asked, one third of Irish businesses considered entering some form of arrangement with suppliers to present a better financial position. 
 
Furthermore, 60% of respondents said that they do not feel that they can report negative financial performance to head office management, in an open and transparent manner. 

The report, which polled 3,800 employees of large companies in 38 countries, goes on to state that 35% of Irish respondents, whose businesses have experienced growth in the last two years, stated that they rate their company’s ethical standards when doing business as ‘very good, indicating that compliance and growth can work together’.

However, 26% of overall respondents consider some form of financial misstatement had occurred in their company in the last twelve months.
 
The report signals that 70% of Irish businesses are under pressure to create new revenue opportunities, with 36% of these under pressure to move into higher risk markets. Moves into these markets create new business relationships with business partners not necessarily known to the business.
 
Julie Fenton, Partner and Head of EY’s Fraud Investigation & Dispute Services (FIDS) practice in Ireland commented, "The picture painted by these statistics could lead to the conclusion that in Ireland, whilst no one would actively misstate their financial results where there is flexibility to present a better financial position through say delaying invoicing, they would take this option.

"This coupled with the pressure of feeling that bad news cannot be reported can lead to an environment where non-compliance is seen as an option."

Source: www.businessworld.ie