73% of Finance Professionals Believe Enron-Scale Scandal Could Happen in the UK Thursday 6 March 2008 PDF Print The findings of a survey by document management software company, Version One (www.versionone.co.uk), highlight that three-quarters of senior finance professionals believe that a case of fraudulent activity on the scale of Enron could happen in the UK. Version One carried out the research with 190 senior finance professionals (finance directors and managers) across a range of public and private sector organisations. The survey reveals that 73% of senior finance professionals believe an Enron-scale scandal could occur in the UK due to “poor controls, collaboration between unscrupulous employees and the ease in which paper documents can be modified”. 73% also stated that someone in their organisation would be able to tamper with or ‘lose’ a document to suit their ends whilst 38% admitted that they had come across activity that could be considered fraudulent involving business documents. A quarter of these stated that they’d witnessed document fraud “a number of times”. Lynne Munns, General Manager of Version One, says, “The false accounting scandal at Enron proved devastating to its reputation and was directly responsible for the company’s downfall. The lessons learnt from this case highlight the importance of managing risk by having effective document management systems in place.” Failing to retain financial documents can prove a tax well as a legal nightmare. In the UK, HM Customs and Excise as well as the Inland Revenue require the retention of numerous documents, with six years’ worth of documents plus the current year being required for VAT purposes. In total, 76% of the survey’s 190 respondents feel that electronic document management would help to prevent fraudulent activity involving business documents. These respondents believe that such a system would improve security access levels making it more difficult to falsify data. Less likelihood of “missing” documents and tighter audit trails are amongst the other reasons put forward by respondents. Munns comments, “By using a secure electronic document management system which tightly integrates into organisations’ accounting and ERP systems, documents cannot be shredded, ‘lost’ and altered, eliminating the risk of damage to an organisation’s reputation and ultimately, its bottom line. Ensuring the document management system is based on strict levels of authorisation and is integrated into systems that maintain audit trails, also makes it an essential tool for preventing fraud.” -Ends- Notes to Editor IMAGE AVAILABLE UPON REQUEST About Enron and Arthur Andersen scandal The Enron scandal was a financial scandal that was revealed in late 2001. In 2002, accounting firm Arthur Andersen LLP was found guilty in the US of obstructing justice, the prosecution alleging it had destroyed documents that showed its employees knew the energy giant was engaged in fraudulent activity. About Version One www.versionone.co.uk Version One Ltd is the author of electronic document management and imaging solutions. These solutions enable the electronic storage, retrieval, management, delivery and authorisation of business documents such as invoices, purchase orders and statements. This 'paperless office' technology is seamlessly integrated into all major ERP and accounting systems and with a typical ROI of less than six months, Version One's solutions are enabling thousands of organisations to cut paper consumption whilst saving dramatic amounts of time and money. Contact: Liz Ebbrell, Version One Liz.firstname.lastname@example.org +44 (0)1625 856505 or 07917 634 705 Ben Carey, Version One Ben.email@example.com +44(0)1625 856505 This press release was distributed by ResponseSource Press Release Wire on behalf of V1 Ltd in the following categories: Business & Finance, for more information visit http://pressreleasewire.responsesource.com/about.