Integrating Ethical Values into Fraud Triangle Theory in Assessing Employee Fraud: Evidence from the Malaysian Banking Industry

Said, Jamaliah; Alam, Md. Mahmudul; Ramli, Masitah; Rafidi, Marhamah

doi:10.31235/osf.io/xpqrs

Cited by 5 publications

(6 citation statements)

References 14 publications

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“…Albrecht et al (2010) also found evidence, in their analysis of fraud cases in South Korea's four largest Chaebols, suggesting that all three elements of the fraud triangle can predict fraud. Said et al (2017) investigated bank employee fraud using a survey of employees at the top three Malaysian banks. The results showed opportunity and rationalization to be positively related with fraud, with rationalization being the strongest influence.…”

Section: Empirical Applications Of the Fraud Triangle In Accounting A...mentioning

confidence: 99%

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UK professional accounting bodies (PAB): Members’ unethical behaviors and exclusion

Adelopo

Meier

2022

J Corp Accounting Finance

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Although previous studies have explored the disciplinary procedures and sanctions by PABs, the focus of these studies has often been generalized to all forms of infringements. This has prevented specific attention on the most severe ethical breaches by PAB members, that is, offences leading to exclusion. Consequently, we do not know their prevalence, the features of these behaviors or the motivating factors for their perpetration by members of the UK's PABs. Clarity on these issues is in the public interest given the centrality of the role of the accounting profession to the efficient functioning of the financial system. We used the fraud triangle theory to shed light on these issues. Our analysis is based on the entire population of 141 serious cases that led to members’ exclusion. We developed an analytical framework that focused on the nature of the infringements, their prevalence amongst the PABs, and the variety of explanations provided by the culprits. Our analysis shows that criminal convictions and breach of ethical guidance are the two major causes of exclusion. Our findings have implications for the PABs in their attempts to ensure their members’ ethical behavior and the adequacy of their disciplinary process.

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Section: Empirical Applications Of the Fraud Triangle In Accounting A...mentioning

confidence: 99%

“…Said et al. (2017) investigated bank employee fraud using a survey of employees at the top three Malaysian banks. The results showed opportunity and rationalization to be positively related with fraud, with rationalization being the strongest influence.…”

Section: Theoretical Underpinning: the Fraud Theory (Tft)mentioning

confidence: 99%

UK professional accounting bodies (PAB): Members’ unethical behaviors and exclusion

Adelopo

Meier

2022

J Corp Accounting Finance

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“…This concept argues that perpetrators of unethical behavior devise a rationale for certain morally acceptable behaviors before engaging in fraud or other forms of unethical behavior. Rationalization seeks to justify unethical behavior different from normal criminal activity (Said, Alam, Ramli, & Rafidi, 2017).…”

Section: Rationalizationmentioning

confidence: 99%

Financial Statement Fraud Detection with Fraud Triangle

Akbar

Nur

Andru

2022

103

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The purpose of this study was to analyze elements in the fraud triangle to clarify the possibility of financial statement fraud in the consumer goods industry subsector. The population in this study is all manufacturing companies in the consumer goods industry sub-sector measured by the M-score model. The total sample used is 36, consisting of 9 companies. The method in this research is quantitative with primary data type. The analytical tool used in this study is logistic regression analysis using the SPSS v20. The results of this study indicate that external pressure, has a significant effect, meanwhile, financial stability, nature of industry and change in auditors do not affect the possibility of fraudulent financial statements. Simultaneously these four variables affect the financial statement fraud. The implication is to contribute to those who have an interest in assessing the potential for fraud in the company. The higher the LEVERAGE value, the greater the potential for fraudulent financial statements.

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“…In order to curb further improper and unethical practices, some insurance associations have drawn up certain procedures and rules to be adhered by the member companies and their agents. Previous research has been conducted on ethical decision-making for banking industry (Said, Alam, Ramli, & Rafidi, 2017). In view of these development, it is the purpose of this research to study the factors contributing to existence of unethical practices in the insurance industry.…”

Section: Introductionmentioning

confidence: 99%

Factors Contributing to Existence of Unethical Practices in the Insurance Industry

Kajwang¹

2022

JAS

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Purpose: The success of the insurance industry vastly depend on the ethical behavior patterns of insurance companies, insurance agents, or insurance brokers as they are the persons who have direct relationships with customers. Ethical behavior patterns in turn build up the customer’s satisfaction and trust towards the insurance industry. Therefore, the insurance industry stakeholders must have the knowledge of the key factors that influences existence the unethical behavior in insurance industry if they want to ensure the ethical behavior prevail in the industry. Different factors contribute to these ethical behavior patterns and organizational factors are more important among them. The main purpose of this study was to identify the factors contributing to existence of unethical practices in the insurance industry. Methodology: In this study, a systematic search was carried using search engines such as Google Scholar, Google Books, Semantic Scholar, Science.gov and ResearchGate, using the keywords; “ethical practices” and “insurance industry”. In total, 52 papers, published until between November 2012 and January 2022, were extracted from these databases. After removing duplicates, the titles and abstracts of these articles were reviewed based on the inclusion and exclusion criteria. Inclusion criteria included all types of studies that examine organizational ethical practices. Exclusion criteria included non-English language articles, articles whose full text could not be accessed, and clinical organization articles due to their different nature. After screening the titles and abstracts of the articles, 46 articles were carefully selected for full text review based on inclusion and exclusion criteria and finally, 34 articles were included in the study. Findings: According to the findings, researchers have shown that it is impossible to salvage the public image of insurance industry without ethical behavior patterns of insurance companies, among insurance agents, insurance brokers, insurance customers, and other stakeholders. This study further shows that more effort is required to protect the individual salesperson’s reputation as well as that of the entire insurance industry. Ethical behavior has been found to be a key ingredient to the success of every insurance provider and to the insurance industry. Recommendations: This study recommends that insurance providers should place ethical issues first in their core values in order to uphold and maintain integrity and accountability in their services. It is also recommended that the management in the insurance industry should uphold transformational leadership that embraces honesty and integrity in business operations. Moreover, the management of the insurance companies should ensure that all their sales agents have adequate knowledge of their various insurance policies to avoid instances of guesswork, just in efforts to lure customer to subscribe to the policies, which is merely aimed at lifting up the earnings of the respective sales agents. It is also recommended that insurance firms should increase their audit frequency in to detect fraudulent claims.

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Integrating Ethical Values into Fraud Triangle Theory in Assessing Employee Fraud: Evidence from the Malaysian Banking Industry

Cited by 5 publications

References 14 publications

UK professional accounting bodies (PAB): Members’ unethical behaviors and exclusion

UK professional accounting bodies (PAB): Members’ unethical behaviors and exclusion

Financial Statement Fraud Detection with Fraud Triangle

Factors Contributing to Existence of Unethical Practices in the Insurance Industry

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