Application of COSO framework in whistle-blowing activities of public higher-learning institutions

Abstract

Purpose The purpose of this study is to determine whether higher-learning institutions have sufficient internal controls to manage whistle-blowing or similar means when encountering repetitive complaints requiring similar corrective actions. This study attempts to classify complaints as per categories, criteria and components of the COSO framework using a checklist called self-assessment checklist of internal control kits so that complaint activities can be efficiently and effectively managed. Design/methodology/approach As a case study, one public university in Malaysia was selected, and 740 complaints were examined over a four-year period. Two methods of data collection, namely, document analysis and interviews, were used. Findings This study found no internal controls established to oversee the complaints that were received. Hence, repetitive complaints were received for similar areas and functions over a period. The application of COSO framework on complaints and whistle-blowing activities, however, led to more organised and visible problems; therefore, effective corrective and preventive action may be conducted. Research limitations/implications This study was conducted on only one organisation with several series of interviews and limited period of document analysis because of privacy and confidentiality of the information. Future research should collect and analyze data from a higher number of organisations with more respondents for interviews and a longer period for document analysis to obtain more accurate results. Practical implications This study provides further evidence on the suitability of COSO framework for different types of organisations, either public or private, and has been successfully adopted globally. It is effective not only to manage the operation and financial matters but also to manage complaints and whistle-blowing activities in organisations. Originality/value This study is original because it focuses on the current practices of internal control in government entities, particularly for organisations that operate as higher-learning institutions, which is scarce in the literature. In addition, this study analysed the drawbacks of internal control systems, especially in dealing with whistle-blower reports and complaints by referring to the list of complaints made by their stakeholders.

Detecting and Preventing Fraud in e-procurement of Public Sector: A Review, Synthesis and Opportunities for Future Research

“…Those studies have been found in year 1998, 2003, 2012, 2015, 2017, 2018, 2019, 2020 and 2021 and the studies have been discovered through bibliometric search. Prevention and detection mechanisms such as internal control, data mining technology used to detect financial fraud and extensive knowledge and practice in Explain the Audit Procedure (EDP) as a part of fraud detection are all found to be the measures used to combat fraud (Abd Karim et al, 2018;Madi et al, 2021;Dangi et al, 2020;Zakaria et al, 2016;Azmi and Ismail, 2022;Alam et al, 2018;Muhamad and Gani, 2020;Ali et al, 2021;Musa et al, 2012;Aziz et al, 2021;Vanasco, 1998;Mwelu and Watundu, 2020;Quah, 2015;Alazzabi and Karage, 2020;Prenzler, 2019;Abramo and Brasil, 2003;Howell, 2017;Šnjegota, 2017;Iskandar, 2019;Al-Hashedi and Magalingam, 2021;Donning et al, 2019;Nawawi and Salin, 2018). Those researches were from the journal of financial crime, International Journal of Law and Management, Journal of Financial Reporting and Accounting, International Journal of Ethics and Systems, Journal of Finance and Risk Perspectives and Journal of Criminological Research, Policy and Practice.…”

Internal control and financial viability: the moderating role of leadership qualities on management of income-generating activities at Indonesian higher education

“…COSO's Concept of Internal Control was developed by collaborating with five private sector organizations to provide thought leadership for the framework and guidance for enterprise risk management, internal control and fraud and prevention. As this research provides suggestions and recommendations for internal control implementation of income-generating policies, the most appropriate is the internal control framework developed by COSO (Dangi et al. , 2020).…”

“…Leadership quality can be a moderator of the ICS (Alam et al ., 2019; Dangi et al ., 2020) and FV (Imam and Reza, 2016; Miranda et al ., 2016). Previous research has found a relationship between ICSs and MIG (Adora, 2019; Towett et al.…”

“…This research refers to the internal control theory of the Committee of Sponsoring Organization (COSO) and Treadway Commission framework (Dangi et al, 2020) and also resource dependence theory (Hillman et al, 2009), which explains that universities do not depend on government funding but have the autonomy to increase income so that the internal institutions needs evaluation and monitoring. It also explains the theory of good university governance, which prioritizes the principles of accountability and transparency (Yirdaw, 2016).…”

Effectiveness of Auditor General’s Online Dashboard Disclosures: Qualitative Perspectives from Malaysian Members of Parliament

“…Accountability concepts play an important role and contribute significantly to the image and positive perceptions of government organizations and related workforce. In the private sector, accountability is important to ensure shareholder wealth and other stakeholder interests are properly safeguarded via ethical decision-making by top management (Alias et al, 2019;Salin & Ismail, 2015;Salin et al, 2020), transparent information disclosure (Jaafar et al, 2019;Salin et al, 2019), fraud prevention (Abidin et al, 2019), efficient corporate governance mechanisms (Nor et al, 2018;Shahar et al, 2020), and strong internal controls (Dangi et al, 2020;Karim et al, 2018).…”