Characteristics of companies with a higher risk of financial statement fraud: Five case studies

Toit, Elda du; Vermaak, Frans N.S.

doi:10.22495/rgcv5i1c1art1

Cited by 1 publication

(2 citation statements)

References 14 publications

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“…Another aspect, perhaps, with the same intention of reducing the occurrence of the phenomenon, is dedicated to identifying red flagsuseful indicators to detect irregularities, as these situations could potentially increase the risk of fraud (Du Toit and Vermaak, 2015). The great utility is that advisors could try to manage the risk of fraud by monitoring their early warning signs (Koornhof and DU PLESSIS, 2000).…”

Section: Literature Reviewmentioning

confidence: 99%

“…For this reason, it was decided to gather what is already known about the phenomenon so that other studies can advance from this point. Lower propensity to pay dividends 29 Kumar and Langberg (2009) Easy access to foreign capital 30 Du Toit and Vermaak (2015) Distorted indicators compared to those in the sector Levy and Ellis (2006), whose process consists of three phases, namely, input, processing and output.…”

Section: Literature Reviewmentioning

confidence: 99%

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Corporate fraud and relationships: a systematic literature review in the light of research onion

Orth

Maçada

2020

JFC

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Purpose This paper aims to investigate how the literature has been addressing the relationships between corporate fraud and executive behavior and corporate fraud and information technology (IT) controls. Design/methodology/approach A systematic literature review was performed following the planning phases proposed by Levy and Ellis (2006), illuminated by the research onion, developed by Saunders et al. (2007). Findings The main findings of the studies analyzed refer basically to models to assess the risk of fraud. These risks originate from the market, from the organization itself or from individuals and also from their relationship networks. Subsequently, the main risks identified by the authors were classified according to their origin, the main theories approached and the “solutions” for the risks presented by the authors as the product of their work. Research limitations/implications It should be noted that this study is not free of limitations, of which two stand out: the full body of articles on the subject was certainly not evaluated. Although the search has been systematic and judicious both by the combination of keywords for the searches, as well as by the use of the main databases and also by the rigor in the description of the procedures and the analysis of the articles in the light of Research Onion was based on the authors’ knowledge that may have been limited in some respect. Practical implications As a practical implication, there is the relationship of red flags and their classification by origin, as they can be very useful for planning the work of internal and external auditors. Social implications It is considered that this work can be a starting point for scholars who are interested in the corporate fraud phenomenon, given that the data was collected and organized systematically. Originality/value The analysis of the articles in relation to Research Onion shed light on the main philosophical and methodological characteristics of the studies. Also, regarding the relationships between corporate fraud and IT controls, existing scientific research appears to be limited. Searches for the terms information technology and information systems were extended, as well as search strings tested with the terms data governance and IT governance without results. This fact demonstrates that there may be (as far as the results have reached) a vast area of research on corporate fraud in the field of systems knowledge and information technology.

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Section: Literature Reviewmentioning

confidence: 99%