Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud
ISSN: 1359-0790
Article publication date: 27 July 2021
Issue publication date: 14 March 2022
Abstract
Purpose
The purpose of this study is to provide theoretical guidance that enables local governments to deal with occupational fraud.
Design/methodology/approach
The quantitative approach is used to examine the efficacy of the Committee of Sponsoring Organisations of the Treadway Commission (COSO) internal control framework in tackling occupational fraud in local government. To achieve the goals, the authors performed a survey of the Indonesian auditor institutions.
Findings
It is not appropriate to argue that all types of local government fraud can be deterred by a single internal control. The study suggests that COSO internal controls are not effective for dealing with corruption cases. However, the authors do find the efficacy of those controls are obvious for controlling asset misappropriation and financial statement fraud. This result indicates that if the COSO internal control framework is only designed for routine financial control and asset protection, it significantly and negatively influences its efficacy to deal with occupational fraud. This study has both theoretical and managerial implications, discussed separately.
Originality/value
In the field of prevention, the authors cannot make generalised theories and approaches for dealing with occupational fraud. Whilst previous authors have offered fraud deterrents in terms of internal controls, they have failed to realise the need to understand their effectiveness for particular forms of fraud. This paper sheds light on the effectiveness of internal controls in achieving their goals. This has both practical applications and stimulates theoretical insights.
Keywords
Acknowledgements
Retraction notice: The publishers of Journal of Financial Crime wish to retract the article “Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud” by A. Maulidi and J. Ansell which appeared in Volume 29, Issue 2, 2022.
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 guidelines of the Journal of Financial Crime make it clear that submitted articles must include data free from errors that may affect the understanding of the article.
The journal sincerely apologises to its readers.
Citation
Maulidi, A. and Ansell, J. (2022), "Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud", Journal of Financial Crime, Vol. 29 No. 2, pp. 680-700. https://doi.org/10.1108/JFC-04-2021-0100
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited