LUCKNOW: Whistle blowing mechanism as a tool for fraud risk management is not used much by Indian corporates and in its absence most employees use informal channels to report any unusual incident as a last resort, an Assocham-Ernst & Young report has pointed out.
"Most frauds result in some form of business disruption as well as reputational and financial losses. Whistle blowing is still at a nascent stage in India, and most Indian companies do not use it as an effective tool against fraud," the report said.
It said an effective whistle-blowing mechanism comprises an independent review conducted by an audit committee.
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