Despite operating in the toughest corporate governance regime in recent history, Australian boards and company management are not as vigilant as they should be when it comes to financial reporting fraud, according to KPMG Forensic partner, Gary Gill
Despite operating in the toughest corporate governance regime in recent history, Australian boards and company management are not as vigilant as they should be when it comes to financial reporting fraud, according to KPMG Forensic partner, Gary Gill. “Financial reporting fraud is [in KPMG’s experience] increasingly prevalent here,” said Gill. In KPMG’s 2004 Fraud Survey financial reporting fraud was identified as the most costly form of fraud. “Financial reporting fraud usually occurs as the result of three factors: incentives and pressures; opportunity; and where it’s possible for the perpetrator to rationalise their actions,” he said.
Top priorities in executive remuneration revealed
Organisations remain focused on executive performance management and aligning executive pay to the market this financial year, according to a new study by remuneration firm CSi. CSi’s July 2005 Australian Top Executive Remuneration Report, a survey of 2,838 individual executives from 455 Australian organisations, revealed that these issues are the top two priorities for the 2005/06 financial year. Seventy-three per cent of organisations indicated executive performance management is a very important priority within remuneration strategies this financial year.
Generation Y need not be afraid
Generation Y should not be afraid to ask for a pay rise when they possess the necessary skills and knowledge, according to Wayne Wallace, a negotiation and mediation consultant with The Trillium Group. “The lack of skills and knowledge in such areas as conflict management and negotiation are the main cause for the strong emotions felt by Generation Y,” he said. “Employers should provide their employees with the necessary training. This will not only benefit Generation Yers by dissipating their fear but also the employers by providing their employees with the ability to handle challenging situations.”
