This paper aims to provide new theoretical discussion about the role of whistleblowing system and fraud awareness as an effective deterrent for financial statement fraud.
The authors conducted surveys to 13 reputable public accounting firms in East Java, Indonesia.
It is well acknowledged, as fraud attacks grow more sophisticated, whistleblowing system and fraud awareness can be possible deterrents. By increasing employees’ fraud awareness, they do not only recognise fraud symptoms and typologies but also support to raise concerns in good faith and on reasonable grounds. This study also suggests the role of fraud awareness as a human capital investment that increase sensitivity on identifying fraud symptoms and discouraging participation in crimes.
This study produces new theoretical discussion about fraud prevention. Then this study also offers several aspects that can help organisation to establish effective whistleblowing systems and reporting mechanisms. Those aspects identified can encourage an individual to report malpractice or wrongdoing. This study also offers how fraud awareness can support the implementation of whistleblowing system in preventing fraudulent financial statements and other irregularities.
Retraction notice: The publishers of the International Journal of Ethics and Systems wish to retract the article: “The roles of whistleblowing system and fraud awareness as financial statement fraud deterrent”, by N. Shonhadji and A. Maulidi, which appeared in Volume 37, Issue 3, 2021, https://doi.org/10.1108/IJOES-09-2020-0140.
It has come to our attention that statistical errors are present within the article and therefore the findings cannot be relied upon.
As part of an investigation into the article’s findings, the authors were requested to provide a copy of the dataset so that the editorial team could verify the findings. The authors were unable to provide the dataset and stated they had committed statistical errors. The authors would like to note that any wrongdoing was unintentional.
This article has been retracted at the authors’ request.
The author and the International Journal of Ethics and Systems sincerely apologise to its readers.
Shonhadji, N. and Maulidi, A. (2021), "The roles of whistleblowing system and fraud awareness as financial statement fraud deterrent", International Journal of Ethics and Systems, Vol. 37 No. 3, pp. 370-389. https://doi.org/10.1108/IJOES-09-2020-0140
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