KPMG, a global network of professional firms providing audit, tax, and advisory services, released a report on Cross-Border Investigations: Effectively Meeting the Challenge.
KPMG, along with the research firm Penn, Schoen and Berland Associates Inc. approached multinational businesses in diverse industries around the world, and asked those charged with the responsibility for cross-border investigations within those companies how they responded to their current challenges. As the trade barriers fall and international commerce expands, and as the speed of conducting business and remitting funds increases, companies that conduct business across international boundaries are recognizing the corresponding increase in the risk of fraud and misconduct. They thus face several challenges such as taking the appropriate first steps, cultural and legal differences, investigation resources, and the availability and
accessibility of electronic data.
The report proposes that an effective approach can lower the risk of the occurrence of fraud or misconduct, thus lowering the possibility of being hit with serious sanctions, can demonstrate to regulators, shareholders, stakeholders, bond-ratings agencies, and the capital markets that the business takes accountability and control seriously, thereby mitigating damage to reputations, can exhibit the business's commitment to overall corporate governance activities, and can assist in a rapid and efficient response before issues spiral beyond control.
This report aims to provide insights into possible responses to the described challenges. It points out as well that an effective cross-border investigations plan demonstrates not only an organization's sound risk management practices, but also its overall commitment to good corporate governance.
Read the full report here.