Though the number of financial fraud cases in 2013 is the same as that of last year, the total value of these cases in 2013 had risen to £1868,548 this year.

Due to the increasing values, analysts found that most of them are dominated by the embezzlement and tax fraud.

Fraudulent statement would more likely to occur in people who understand the operation steps of financial statement.

The government should consolidate its management and policy, but commercial banks should regulate themselves rather than risk all to increase their bank balances. It would be such a potential uncertainty that allowed professional criminals to take advantage of it. As what we discussed in the class, fraudulent financial reporting might result from greed of businessmen and weak internal controls. This case is exactly the example of lack of effective supervision and documentation.

Other than these reasons, there might be inefficient external evaluations or lack of third-party evaluations for these companies. As a result, no matter which reason each case belongs to, the losses will not only affect the honest investors and private sectors, but also the costs of government.  As what said in the passage, “a severe punishment regime should be proposed soon.”

link to the passage: http://www.bbc.co.uk/news/uk-scotland-23179763