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State and local government fraud survey for 1995

Douglas E. Ziegenfuss (Associate Professor, Department of Accounting and Finance, Old Dominion University, Norfolk, Virginia, USA)

Managerial Auditing Journal

ISSN: 0268-6902

Article publication date: 1 December 1996



Reports on a questionnaire survey of US local government auditors conducted to determine the amount of fraud in state and local governments. Concludes that fraud is a significant problem for state and local governments and finds that management is not responding effectively to “red flags” or to the actual frauds when they are discovered; most of the loss in fraud cases is accounted for by misappropriation of funds, other false representation, other fraud, or false invoices. The most effective fraud detection methods include: internal audit review; specific investigation by management; employee notification; internal controls; and accidental discovery. Finds that most of the legal departments of the government entities studied did not have policies and procedures for dealing with employees suspected of fraud.



Ziegenfuss, D.E. (1996), "State and local government fraud survey for 1995", Managerial Auditing Journal, Vol. 11 No. 9, pp. 50-55.




Copyright © 1996, MCB UP Limited

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