Large global companies recognize that global compliance andreporting (GCR) risks are increasing, as many countries rewritetheir tax codes, step up audits and focus more on tax collection,even as there are also dramatic changes in financing models.

Yet many of these same companies are not taking the opportunityto transform their global compliance and reporting systems, and insome cases are even overlooking “many essential subprocesses” suchas the flow of financial data to GCR systems, according to a newreport on global compliance and reporting from Ernst &Young.

Based upon interviews with 200 finance and tax executives atForbes Global 2000 companies, many of which are also in the FortuneGlobal 500, the report finds that 64% of companies have experiencedunplanned tax audits over the past year, while 45% were hit withunexpected tax assessments. Another 42% say they faced penaltieswhile 17% suffered interruptions due to “lack of compliance.”