Catch the “Warning Signals”: The Fight against Fraud and Abuse in Non-Profit Organisations

Arshad, Roshayani; Asyiqin, Wan Ainul; Razali, Wan Mohd; Bakar, Noorbijan Abu

doi:10.1016/s2212-5671(15)01089-8

Cited by 20 publications

(30 citation statements)

References 18 publications

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“…Thus, detailed information about these activities or projects is crucial to be able to demonstrate the foregoing and facilitate both the decision-making process and the satisfaction of the stakeholders' informational needs. To the contrary, as pointed out by Arshad, Asyiqin, Razali, and Bakar (2015), this kind of organizations, which operate within a climate of social trust, many of them doing so within a global framework where real or financial exchanges are transnational, are more vulnerable to fraudulent actions. In this work we have proposed an index to measure information transparency with regard to the projects carried out by NGOs.…”

Section: Discussionmentioning

confidence: 99%

Improving and measuring transparency in NGOs: A disclosure index for activities and projects

Semper

Fuertes

Llaudes

et al. 2017

Nonprofit Mgmnt & Ldrshp

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Nongovernmental organizations (NGOs) are established not with the aim of making profits but rather to provide social values by implementing different projects and activities. Transmitting complete information about these projects to society is a key element of transparency, as they operate within an atmosphere of public trust. Although there is a large body of literature on transparency in NGOs from a global perspective, very little research has been conducted on transparency within the area of projects and activities. This study takes a deeper look at this line and contributes to the literature on transparency in NGOs by proposing an index to measure the information transparency of the projects implemented by these organizations. The index captures three dimensions of the information about the projects (technical, financial, and scope) and makes it possible to: analyze the level of transparency of the portfolio of projects, detect the specific aspects that could be improved in each organization, and carry out comparisons among organizations.

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Section: Discussionmentioning

confidence: 99%

Improving and measuring transparency in NGOs: A disclosure index for activities and projects

Semper

Fuertes

Llaudes

et al. 2017

Nonprofit Mgmnt & Ldrshp

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“…Further, they often lack formal control mechanisms as they are characterised by informal and interpersonal trust Wolfe & Hermanson, 2004). (Arshad et al, 2015;Greenlee et al, 2007). Together with tendencies for only a few members to engage in the development and leadership of nonprofit organisations (Horch, 1994), levels of control are often quite low (Zack, 2003).…”

Section: Fraud In Nonprofit Organisationsmentioning

confidence: 99%

“…The role-identities of members, simultaneously as consumers, producers, financiers, and decision-makers combined with interpersonal trust (Horch, 1994;Thiel & Mayer, 2009) affects the extent of internal controls. Furthermore, nonprofit board members have a duty to act for the good of others and are expected to exercise good faith and honesty which often bestows a high level of public trust (Arshad et al, 2015;Gibelman & Gelman, 2001;Greenlee et al, 2007;Holtfreter, 2008).…”

Section: Fraud In Nonprofit Organisationsmentioning

confidence: 99%

“…Taken together, many scholars point out that fraud may be easier to commit in nonprofits due a lack of business and financial expertise, difficulty in verifying revenue streams, less stringent regulatory requirements, heavy reliance on volunteer boards, and limited resources for financial management, all of which increase nonprofit organisations' vulnerability to fraud (Arshad et al, 2015;Gibelman & Gelman, 2001;Greenlee et al, 2007;Harvey, 2018;Holtfreter, 2008;Zack, 2003). While the emerging body of work on corruption in sport has provided a sound starting point for scholarly understanding, sport corruption still remains largely under-examined and under-theorised in the field of sport management (Kihl et al, 2017).…”

Section: Fraud In Nonprofit Organisationsmentioning

confidence: 99%

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Tip of the iceberg? An international investigation of fraud in community sport

Kihl

Misener

Cuskelly

et al. 2021

Sport Management Review

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This study examines the nature and incidences of occupational fraud in community sport organisations (CSOs) as reported in media coverage from Australia, Canada, Germany, and the United States from 2008−2018. Using the fraud diamond framework, the main indicators for fraud occurring in CSO's included: incentive (i.e., personal financial struggles, supporting lavish lifestyles, addictions, and mental health issues); opportunity (i.e., access to organisational accounts, insufficient financial control mechanisms, vacancy in key positions, singular role responsibilities, and perceived trustworthiness of club leaders), rationalisation (i.e., denial of responsibility, good intentions, and self-justification), and capability (i.e., educated professionals and learned advantage). The findings showed that individuals who committed various forms of occupational fraud typically held the trusted volunteer positions of treasurer or president. The research offers a new understanding of the global nature of fraud and its risk indicators within the CSO context, and begins to identify how CSOs might be susceptible to fraud, thereby articulating a future research agenda to explore fraud vulnerability in CSOs. In practice, this study offers important insights for antifraud strategies and training in the community sport sector.

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“…This is particularly important from the perspective of decision--making processes aimed at, among others, the possibility of a rapid increase in cash by implementing investments with above-average rates of return. In the literature on the subject, it is noted that such instruments include the analysis of discretionary accruals (Dechow and Dichev 2002;Healy and Wahlen 1999;Jones, 1991;Piosik, 2013, Schipper, 1989 or the analysis of red flags (Arshad, Asyiqin, Razali, and Abu Bakar, 2015;DiNapoli, 2016;Lew, 2017;Njanike, Dube, and Mashayanye, 2009;Pincus, 1989, etc.). However, also discriminatory models reducing the assessment of the reliability of reporting data to the analysis of a single indicator, combining various economic measures in a weighted manner, may prove helpful in assessing the quality of financial statements (Fich and Shivdasani, 2007;Kaminski, Wetzel, and Guan, 2004;Skousen and Twedt, 2009).…”

Section: Introductionmentioning

confidence: 99%

The effectiveness of the Beneish model in the detection of accounting violations – the example of companies sanctioned by the Polish Financial Supervision Authority

Comporek¹

2020

Prace Naukowe Uniwersitetu Ekonomicznego we Wrocławiu

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The main purpose of the paper is to assess the effectiveness of the eight-factor Beneish model in detecting manipulations in the financial statements of public companies listed on the Warsaw Stock Exchange. The research sample consists of 27 enterprises that were sanctioned at least once by the PFSA for irregularities in compliance with the IAS/ IFRS principles in the period 2006-2018. Empirical analysis proved that in the selected group of enterprises, the original version of the Beneish model is characterized by a relatively low degree of usefulness, thus it should be considered as an average tool supporting the work of auditors, statutory auditors and stock exchange investors, and at the same time a starting point for the further search for instruments to detect accounting violations, developed and adapted to conditions of the Polish capital market.

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Catch the “Warning Signals”: The Fight against Fraud and Abuse in Non-Profit Organisations

Cited by 20 publications

References 18 publications

Improving and measuring transparency in NGOs: A disclosure index for activities and projects

Improving and measuring transparency in NGOs: A disclosure index for activities and projects

Tip of the iceberg? An international investigation of fraud in community sport

The effectiveness of the Beneish model in the detection of accounting violations – the example of companies sanctioned by the Polish Financial Supervision Authority

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