So Where Were the Accountants?
According to a new KPMG survey, more companies, spurred by new regs and investor scrutiny, are finding more problems with internal controls than they were before.

KPMG said it's survey showed that 75 percent of respondents report they have uncovered fraud in their organizations in the last year, compared with 62 percent of executives responding to a similar survey in 1998. Employee fraud occurred the most frequently, according to survey respondents, although financial reporting and medical/insurance fraud were much more costly. KPMG's 2003 report surveyed executives at 459 U.S. public companies, with revenues of more than $250 million, and at state and federal government agencies.

And still, KPMG said, "despite heightened awareness and broader implementation of fraud detection controls," 22 percent of executives said they do not plan to implement new controls. "This finding was regrettable," said a KPMG'er. No kidding.