New Delhi : A large number of companies exaggerate profits and indulge in corrupt practices to achieve higher growth, says a survey by global accountancy firm EY.
EY, formerly known as Ernst & Young, found that manipulation of financial results is prevalent as 40 % of the respondents believe companies often exaggerate financial performance. “59 % opine that companies often report their financial performance as better than it is,” the survey said.
“Businesses are operating in an exceptionally challenging environment,” it said, adding management is under increased pressure to find new ways to grow their business. EY Partner (Fraud Investigation & Dispute Services) Arpinder Singh said: “There is enhanced awareness about ethical business practices and that acceptance seems to be setting in, though it may take time.” Nearly 81 % said that managers are under increased pressure to identify new revenue opportunities, and 66 % believe that the pressure to venture into higher risk markets is high.
