Advances and Issues in Fraud Research: A Commentary

Ozili, Peterson K

doi:10.2139/ssrn.3132210

Cited by 13 publications

(18 citation statements)

References 45 publications

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“…When GLCs or state-controlled companies are hit by fraud scandals, public and investors will lose their confidence and this can be seen from the 2018 Corruption Perception Index produced by Transparency International that ranked Malaysia in 61st place out of 180 countries, with a score of 47, 6 places lower than in 2016 (Transparency International, 2018). Therefore, this study addresses fraud issues in the state controlled companies from a top management perspective to respond the public pressure for fraud researcher to recommend solutions in dealing with corporate and public fraud (Ozili, 2020) and to add to the paucity of the research in this area of study (Kyoungsun, 2018).…”

Section: Introductionmentioning

confidence: 99%

The risk of financial fraud: a management perspective

Hashim

Salleh

Shuhaimi³

et al. 2020

JFC

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Purpose A number of highly publicised scandals such as Enron, Lehman Brothers, Parmalat, Satyam, Toshiba and 1MDB (to name a few) have heightened the awareness of the effects of fraudulent financial reporting. While enormous measures have been taken to curb the fraudulent activities among large and small businesses, the issues are still alarming worldwide. Thus, this study aims to explore the extent to which the prevalence of fraud risk in state-controlled companies and to enhance understanding of the underlying reasons of the fraudulent activities. Design/methodology/approach As this study is a descriptive and exploratory in nature, an exploratory case study method was used in four state-controlled companies. Using the fraud triangle theory to underpin this study, the qualitative face-to-face interviews were carried out with top management of the companies. Findings The study reveals a high risk of fraud occurrence at state-controlled companies that involve dealing with various suppliers, governments, customers and shareholders, even when standard operating procedures and rules and regulation are in place. The apparent reason for this phenomenon is attributed to not only opportunities but also incentives and rationalisations in engaging fraudulent activities. Originality/value As there are relatively few qualitative studies conducted in this area specifically among Malaysian state-controlled companies, this study extends the fraud literature by examining risk exposure and reasons underlying the fraudulent activities. The findings demonstrate that to a certain extent, the fraud triangle theory explains the motivations behind the fraudulent activities. The finding from this study is relevant to regulators, investors, companies and academicians in understanding, preventing and combating fraud.

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Section: Introductionmentioning

confidence: 99%

The risk of financial fraud: a management perspective

Hashim

Salleh

Shuhaimi³

et al. 2020

JFC

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“…Fraud can be committed by employees, former employees and outright outsiders (Crumbley, 2003;Zahra et al, 2005;Ozili, 2015), and there is a general consensus that fraud involves the intentional alteration or manipulation of material financial records and supporting documents (Ozili, 2015). Fraud schemes vary in scope and context, and some types of fraud are industry-specific (Calavita et al, 1997, Ozili, 2020.…”

Section: Literature Reviewmentioning

confidence: 99%

Forensic Accounting Theory

Ozili¹

2020

Uncertainty and Challenges in Contemporary Economic Behaviour

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This article presents a forensic accounting theory. Forensic accounting theory is an explanation of why and how the choice of methods and techniques used to detect creative accounting or fraudulent manipulations in financial reporting, and the outcome of using such methods or techniques, depends on the accounting and non-accounting decisions taken into consideration by the forensic accountant or investigator. The forensic accounting theory developed in this paper is useful to both practitioners and academics, and the resulting contribution to accounting theory and forensic science are useful to the problem-solving process in the global fight against financial crime.

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“…Different forms of fraudulent activities which included: organizational fraud, employee misappropriation, merchant scam, venture tricks, consumer scam, procurement fraud, miscellaneous fraud was categorized into three (3) broad headings as internal fraud, external fraud and corruption or collusion [17] . Ozili [18] specific frauds occur in specific industries and fraud schemes vary in scope and context.…”

Section: Types Of Fraud That Could Occur In Projectsmentioning

confidence: 99%

Managing Projects Using Forensic Accounting in Detection and Prevention of Fraud in Ghana

Fiergbor¹

2020

GES

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Managing projects has become an integral part of business growth and sustainability in contemporary business management practices. As businesses grow and expand, there is a need for prudent and proper management of projects to ensure value for money. Accounting in general has been very critical to the survivor of every business. The complexity of some projects would require more than just average accounting knowledge to ensure their successful planning, execution and completion. It was against this background that this study sought to evaluate "managing projects using forensic accounting in detection and prevention of fraud". The study adopted a qualitative approach and Klynveld Peat Marwick Goerdeler (KPMG) Ghana, a renowned international audit firm was purposely sampled for the study due to its broad business engagements in forensic accounting. The study revealed forensic accounting as a relevant tool in the prevention and detection of fraud in project management practices. There were potential red flags of fraud in Ghanaian projects. Forensic accounting would help complete projects according to schedule and boost the credibility of project managers to the general public. The fraud was a general phenomenon that existed in almost every project. The findings also revealed that irrespective of the nature of fraud, forensic accounting could control it. It was concluded that forensic accounting is of enormous essence to the Projects Community in Ghana especially when forensic accountants were retained for forensic accounting purposes.

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Advances and Issues in Fraud Research: A Commentary

Cited by 13 publications

References 45 publications

The risk of financial fraud: a management perspective

The risk of financial fraud: a management perspective

Forensic Accounting Theory

Managing Projects Using Forensic Accounting in Detection and Prevention of Fraud in Ghana

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