Fraud in US organisations: an examination of control mechanisms

Abstract

Focuses on a type of white‐collar crime known as occupational fraud, which is estimated to amount to 6% of total revenues in the USA. Describes the control mechanisms that US organisations use to control and prevent this crime, including background checks, internal and external audits, and more recently, the use of anonymous reporting aimed to make employees turn in fraudulent co‐workers. Reviews the literature on this topic and describes the methodology used in the research, which examines the four types of control mechanism. Concludes that the study validates previous research in finding that the direct costs of occupational fraud are extensive, that there exist related societal effects which are however unmeasurable with any accuracy, that virtually no US organisational setting is immune from internal fraud, and that a variety of measures are needed to control this crime.

Citation

Holtfreter, K. (2004), "Fraud in US organisations: an examination of control mechanisms", Journal of Financial Crime, Vol. 12 No. 1, pp. 88-95. https://doi.org/10.1108/13590790510625070