Purpose This paper aims to provide new theoretical discussion about the role of whistleblowing system and fraud awareness as an effective deterrent for financial statement fraud. Design/methodology/approach The authors conducted surveys to 13 reputable public accounting firms in East Java, Indonesia. Findings It is well acknowledged, as fraud attacks grow more sophisticated, whistleblowing system and fraud awareness can be possible deterrents. By increasing employees’ fraud awareness, they do not only recognise fraud symptoms and typologies but also support to raise concerns in good faith and on reasonable grounds. This study also suggests the role of fraud awareness as a human capital investment that increase sensitivity on identifying fraud symptoms and discouraging participation in crimes. Originality/value This study produces new theoretical discussion about fraud prevention. Then this study also offers several aspects that can help organisation to establish effective whistleblowing systems and reporting mechanisms. Those aspects identified can encourage an individual to report malpractice or wrongdoing. This study also offers how fraud awareness can support the implementation of whistleblowing system in preventing fraudulent financial statements and other irregularities.

Purpose This paper aims to provide new understanding of fraudulent behaviour by offering different theoretical discussion on the fraud causation. Design/methodology/approach The authors interviewed 15 executive managers in one of Indonesia local governments, by using semi-structured questions. Findings The authors explored the dynamics of both self- and other-directed factors in the spread of fraudulent behaviours, by focusing on the public-sector fraud landscape in local government. As a basis of analysis, the authors applied the theory of planned behaviours. In this study, “a concept of fraud triangle” substantially provides little help in elucidating the causation of fraudulent behaviours in local government. The theoretical and managerial implications are discussed. Originality/value This study offers new direction on broadening and deepening fraud literature and theories about the root causes of fraudulent behaviours.

Purpose This study aims to examine the effect of gender board diversity on corporate fraud. Particularly, it is to gain empirical evidence whether firms with more female corporate leaders are more (less) likely to engage in corporate fraud. Design/methodology/approach The authors use data of fraud firms from Accounting and Auditing Enforcement Releases. As a focus of the study, the authors take the fraud sample observations from the last 10 years, from 2011 to 2021. The idea is that the number of firms sectioned due to corporate fraud reached a peak in such periods. Findings In the context of non-state-owned enterprise environments, the authors find female corporate leaders are less likely to engage in corporate fraud. However, among firms with a state-owned background, the authors’ empirical evidence shows that the roles of female corporate leaders remain under-represented in the boardrooms. As reported, the presence of female corporate leaders does not bring a significant impact on enhancing group ethical decision-making and governance quality. This situation does appear when political connections between firms and governments or politicians are prevalent. Research limitations/implications This study has practical and theoretical implications. Given the increased pressure on companies around the globe to have more females in their boardrooms, this study provides insight into the effect of female corporate leaders on the prevalence of corporate fraud. As such, this study offers critical consideration for policymakers and regulators. Moreover, an analysis of whether and when the gender board diversity is associated with the firm’ propensity to perpetrate corporate fraud, particularly from the US corporate fraud, is sorely lacking. This study contributes to such gaps. Originality/value This study provides insightful discussion about the topical issue of whether, and under what circumstances, female corporate leaders influence (or do not influence) corporate fraud.