Warning: Aerospace & Defense Companies At Fraud Risk

By one estimate, 30% of aerospace and defense industry companies have suffered some kind of fraud, with consequences that go beyond financial misstatements."A fraud can devastate a company's most valuable assets of reputation and brand value, even when there is no financial statement impact," says Scott Thompson, U.S. defense and aerospace leader at PricewaterhouseCoopers, a management advisory services firm.

Fraud in the aerospace and defense industry can range from improper payments to government officials to violations of U.S. Export Administration regulations.

PwC suggests companies adopt a five-step anti-fraud program that includes conducting a fraud risk assessment and standardizing processes for incident investigation and remediation.

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