Abstract
Purpose
This study aims to examine the roles of organisational control, structure, culture and technology in preventing occupational fraud. This study is essential in the current time. It brings a significant impact on both theory and practice. In the existing studies, there is a lack of clarity on a specific mechanism to prevent organisational fraud. The problem is that they tend to generalise the types of organisational fraud. Conceptually, organisational fraud may include corruption, double funding, asset misappropriation, bribery or falsification of documents. However, many scholars tend to neglect such diversities. Consequently, many occupational fraud cases become unstoppable, particularly corruption. To deal with this topical issue, the current study applies the term “occupational fraud” cited by the Association of Certified Fraud Examiners, consisting of corruption, asset misappropriation and fraudulent financial statement.
Design/methodology/approach
This study surveyed three Indonesian Local Governments. This study focussed on management levels that have strong power for coordinating governmental activities. The author chose these local governments because their local leaders (the regents) were jailed due to corruption scandals. As expected, this study gives us different perceptions of how fraud mitigation should be designed in the organisation.
Findings
The results suggest that corruption is a little bit complex than other types of occupational fraud. It is improbable to be prevented through technological and administrative approaches. As such, organisations need to think of extra efforts that could perfectly tailor the organisational control and organisational culture, organisational structure and technological advancement. The benefit of this effort is related to diagnosing the fit or misfit of organisation designs in addressing the dynamic dimensions of corporate governance. Then, it can also strengthen the efficacy of preventive measures to deal with occupational fraud.
Originality/value
This study provides a provocative discussion regarding the public perception of occupational fraud, consisting of corruption, asset misappropriation and financial statement fraud. And this study also offers a new refined conceptual analysis of how to deal with such types of occupational fraud by incorporating contingency theory and the Committee of Sponsoring Organizations of the Treadway Commission (COSO’s) internal control components.
Subject
Economics and Econometrics,Philosophy
Reference190 articles.
1. Are emerging technologies helping win the fight against corruption? A review of the state of evidence;Information Economics and Policy,2021
2. Controlling petty corruption in public administrations of developing countries through digitalization: an opportunity theory informed study of Ghana customs;The Information Society,2021
3. Information technology and government corruption in developing countries: evidence from Ghana customs;MIS Quarterly,2020
4. Forensic accounting: a novel paradigm and relevant knowledge in fraud detection and prevention;International Journal of Public Administration,2022
5. Strategy, control activities, monitoring and effectiveness;Managerial Auditing Journal,2009
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献