Detecting asset misappropriation: a framework for external auditors

Kassem, Rasha

doi:10.1504/ijaape.2014.059181

Cited by 10 publications

(14 citation statements)

References 22 publications

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“…Asset misappropriation may be promoted by various factors such as asset sensitivity, including the nature and convenience of cash availability, product inventory features (high demand or high price), inadequate management control and negligence in timely correction of a major recognized defect in the internal control system. This evidence is in keeping with the findings reported by Albrecht et al (2008), Kassem (2014); and Kazemian et al (2019).…”

Section: Theoretical Framework and Prior Researchsupporting

confidence: 92%

Fraudulent financial reporting motivations in emerging markets

Sallal

Velashani

Saei

2021

JFC

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Purpose The purpose of this paper is to study comparatively motivations for committing fraud in financial statements in two emerging markets including Iran and Iraq. Design/methodology/approach The research is a descriptive survey and statistical population consists of independent auditors. The field survey and questionnaire were used for data collection. Findings Findings can raise auditors’ awareness of management fraud motivations. It can help regulators and authorities in both countries as well as other emerging markets for establishing suitable rules and regulation. Originality/value This paper’s contribution was in identifying and comparing management’s motivations to commit financial reporting fraud in two emerging markets including Iraq and Iran.

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Section: Theoretical Framework and Prior Researchsupporting

confidence: 92%

Fraudulent financial reporting motivations in emerging markets

Sallal

Velashani

Saei

2021

JFC

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“…This complete classification of internal fraud is often referred to as the Fraud Tree. Asset misappropriation is divided into three subcategories: skimming, larceny, and fraudulent disbursements (ACFE, 2020; Kassem, 2014). Classification of asset misappropriation typologies (fraud schemes) is demonstrated in Figure 1.…”

Section: Notion Of Patient Dutiesmentioning

confidence: 99%

“…Importance of red flags for detecting misappropriation of assets is demonstrated in studies by R. Kassem (2014), W. Hijazi and R. Mahboub (2019). The authors analyse alerts of fraud in context with the International Standard of Auditing (ISA) 240 "The Auditor's responsibilities relating to fraud in an audit of financial statements" (International Federation of Accountants, 2009).…”

Section: Bibliography Introductionmentioning

confidence: 99%

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universitāte¹

2021

SOCRATES

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“…These reports and a few other studies have attracted significant attention to the business community worldwide (Kamarudin et al, 2012). This might be because of the widespread high-profile corporate scandals such as Enron, WorldCom, Lehman Brothers, Bre-X, Parmalat and Satyam Computer or the increasing frequencies and costs associated with fraud globally (Lang and McGowan, 2013;Grove and Basilico, 2011;Cohen et al, 2010;Rezaee and Davani, 2013;Kassem, 2014). Fraud losses to businesses are estimated to range from 3 to 9 per cent of annual revenue, which translates to trillions of dollars globally (Button et al, 2012a(Button et al, , 2012bHoltfreter, 2004;Aliabadi et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

“…In this context, employees and management fraud studies in business organisations are worth undertaking in an attempt to combat fraud. The need is particularly huge in the context of developing countries because despite the pervasiveness of the fraud, little attention has been paid in the prior studies to these contexts (Kassem, 2014;Krambia-Kapardis and Zopiatis, 2010).…”

Section: Introductionmentioning

confidence: 99%

Analysis of employee and management fraud in Tanzania

Zuberi

Mzenzi

2019

JFC

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Purpose The study aims to explore specific motivations, rationalizations and opportunities that are involved in the occurrences of both employee and management fraud in the context of an emerging African country, Tanzania. It builds and extends from the fraud triangle theory. Design/methodology/approach A survey was developed and administered to 114 participants who had witnessed, had examined or had been involved in fraud resolutions. The participants included fraud examiners, business managers and owners, victims, auditors, lawyers, and law enforcement agents. The data collected were analysed using descriptive analysis, principal component analysis and correlation analysis. Findings The results revealed six motivation factors that incentivize employees and managers to engage in fraudulent behaviours. These are business financial strain, social incentives and pressure, greed, operating problems, internal pressures and malevolent work environment. In addition, fraudsters rationalized their behaviour through five significant neutralization techniques identified as social weighting, transferring of blame, denial of injury, attitude and prior fraud history. Lastly, victim organisations were identified to have three main fraud opportunities: poor control environment, inadequate control activities and circumstances that allowed collusive behaviour among fraudsters. Research limitations/implications While the study attempted to explore the motivations, opportunities and rationalizations from the perspectives of the fraud-fighting professionals and witnesses, their views and suggestions might be different from the actual known fraudsters or incarcerated individuals. Practical implications Business organisations, fraud-fighting professionals and general community must understand the factors behind fraud occurrences, so proper measures may be taken to limit the frequency and amount of fraud losses. Social implications Creation of public awareness and dialogue necessary for the prevention, fighting and deterrence against all forms of fraud. Originality/value Despite the occurrences of many scams in both public and private sectors, limited studies exist as to the triggers behind fraud occurrences in the context of the developing countries and whether these triggers are the same as in other contexts. This study is an attempt to fill this gap.

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Detecting asset misappropriation: a framework for external auditors

Cited by 10 publications

References 22 publications

Fraudulent financial reporting motivations in emerging markets

Fraudulent financial reporting motivations in emerging markets

Untitled

Analysis of employee and management fraud in Tanzania

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