Corporate investigations

Abstract

Purpose

The aim of the research is to explain the requirements for conducting a corporate investigation and to indicate that corporations must have effective corporate governance and compliance structures that are flexible and innovative to combat new and emerging frauds.

Design/methodology/approach

The methodology is to give a brief overview of the major past and current frauds, explain the nature of corporate crime and how a corporation should go about conducting an effective corporate investigation. The paper gives some warnings about new and emerging frauds and emphasizes lessons have to be learned from large corporate failures, such as Enron and Parmalat.

Findings

If corporations are not vigilant and do not have innovative and adequate corporate compliance structures, they open themselves to weaknesses that can effectively cause their own demise.

Practical implications

The paper gives direction on how to conduct an effective corporate investigation and the relevant steps that should be considered if an investigation is undertaken.

Originality/value

Practical oversight of conducting financial crime investigations and warning corporations to be vigilant and ensure that there are appropriate corporate compliance structures in place to deal with emerging frauds or other financial crime.

Citation

Coburn, N.F. (2006), "Corporate investigations", Journal of Financial Crime, Vol. 13 No. 3, pp. 348-368. https://doi.org/10.1108/13590790610678422