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TOPIC: An annual study by Oversight Systems found approximately 75 percent of certified fraud examiners claimed institutional fraud is more common now than five years ago according to an article by Wall Street and Technology. Four out of five survey participants cited the pressure “to do whatever it takes to meet goals” as the most common reason for corporate fraud. July 2007 marks the fifth anniversary of the Sarbanes-Oxley Act, which was passed in 2002 in an effort to prevent and deter accounting scandals, such as those that occurred with Enron and WorldCom.

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Yahoo.com: Experts Available to Discuss Survey on Corporate Fraud, Sarbanes - Oxley’s Fifth Anniversary

The Sarbanes-Oxley Act hasn’t helped in the long-running battle against corporate fraud, according to a recent survey of certified fraud examiners — a staggering 76 percent of whom reported that fraud is more prevalent today than five years ago.

The 2007 Report on Corporate Fraud, conducted for governance software vendor Oversight Systems Inc., noted that that was up nine percentage points from its survey in 2005, and that a mere 3 percent of respondents felt that fraud was less prevalent, down from 7 percent in 2005.

“This survey indicates the checklist approach to compliance is not effectively reducing fraud,” said Oversight Systems chief executive Patrick Taylor, in a statement.

Furthermore, 43 percent of respondents felt that “vigilance and interest by corporate leaders” in creating a culture of integrity and fraud prevention had “already started to fade.”

WebCPA: Survey: Fraud Is Up, Despite SOX

Sarbanes-Oxley, the U.S. law designed to stamp out corporate fraud, is prompting more companies to keep secrets in the bond market.

Siemens AG, Australian retailer Woolworths Ltd., Miller Brewing Co. of Milwaukee and at least 100 other companies are selling bonds that aren’t registered with the Securities and Exchange Commission instead of debt that requires more disclosure. The securities increased 50 percent in the past two years, five times faster than the rest of the U.S. market, according to data compiled by Lehman Brothers Holdings Inc.

“It’s a darker world of the bond market,'’ said Matthew Eagan, who helps oversee $97 billion in fixed income, including unregistered bonds, at Loomis Sayles & Co. in Boston. “It’s off the radar.'’

The private bond sales are flourishing because companies face almost no penalty for keeping their finances away from the public. The millions of dollars in costs to comply with the Sarbanes-Oxley Act of 2002 can wipe out savings from public debt because investors demand only 11 basis points more in yield to buy unregistered securities, Lehman data show.

Bloomberg.com: Sarbanes-Oxley Backfires in Unregistered Bond Sales (Update2)