Search results

1 – 10 of over 15000
Article
Publication date: 5 May 2015

Kwabena Frimpong

This article aims to focus on the impact of the current austerity measures on UK public sector anti-fraud and financial crime investigative resource capacity building initiative…

1138

Abstract

Purpose

This article aims to focus on the impact of the current austerity measures on UK public sector anti-fraud and financial crime investigative resource capacity building initiative developed over the years to tackle fraud against the public purse.

Design/methodology/approach

The article draws on secondary sources of data and available literature on fraud and financial crime.

Findings

Fraud is a challenge in the UK public sector but the cut-back on anti-fraud and financial crime investigative resources, given the scale of public sector fraud, the growing emphasis on accountability and the time of austerity with public money more exposed to fraud is arguably a back-door/u-turn policy on zero-tolerance approach in tackling public sector fraud and financial crime. There is the potential of this encouraging more fraud and financial crime against the public sector in the long term if measures are not taken to devise strategies for enhancing anti-fraud and financial crime investigative resource capacity.

Research limitations/implications

The research implication for this article is that it opens an avenue for future studies to examine post austerity strategies for strengthening public sector anti-fraud and financial crime investigative resource strategies to deal with emerging fraud threats to UK public sector.

Practical implications

This article acts as a reference guide for policymakers to reflect on the long-term adverse impact of the austerity on anti-fraud and financial crime investigative resource capacity and capability in tackling fraud public sector fraud.

Originality/value

The paper attempts to present an alternative lens to examining the scale of UK public sector fraud problem rather than relying on headline story of declining fraud in UK.

Details

Journal of Financial Crime, vol. 22 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 28 March 2024

Tarjo Tarjo, Alexander Anggono, Zakik Zakik, Shahrina Md Nordin and Unggul Priyadi

This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.

Abstract

Purpose

This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.

Design/methodology/approach

The method used was the mix method. The number of respondents was 410. They combined the moderate regression analysis with PROCESS Andrew F Hayes to test the research hypothesis. After conducting the survey, it was continued by conducting interviews with the village community and the head of the village.

Findings

The first finding of this study is that ICSR has a significant positive effect on social welfare. The second finding is that financial fraud weakens the influence of ICSR on social welfare. The results of the interviews also confirmed the two findings of this study.

Research limitations/implications

The high level of bias in answering the questions is due to the low public knowledge of ICSR. In addition, the interviews still needed to involve the oil and gas companies and government.

Practical implications

The main implication is improving social welfare, especially for those affected by offshore oil drilling. Furthermore, stakeholders are more sensitive to the adverse effects of financial fraud. Finally, to make drilling companies more transparent and on target in implementing ICSR.

Originality/value

The main novelty in this research is using of the mixed method. In addition, applying financial fraud as a moderating variable is rarely studied empirically.

Details

Journal of Financial Crime, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-0790

Keywords

Book part
Publication date: 15 December 2011

Jinyu Zhu and Simon S. Gao

Purpose – This study investigates the nature, types, and methods of fraudulent financial reporting committed by Chinese listed companies with a view to understanding corporate…

Abstract

Purpose – This study investigates the nature, types, and methods of fraudulent financial reporting committed by Chinese listed companies with a view to understanding corporate behavior relating to management fraud in China. Such an understanding is important for preventing frauds and achieving better financial reporting compliance.

Design/Methodology/Approach – This study adopts a descriptive research approach using the data based on 182 punishment bulletins issued by the China Securities Regulatory Commission from 2002 to 2006. The study considers three categories of frauds (i.e., false income statements, false balance sheets, and insufficient or false disclosure) and uses these categories to describe and analyze the fraud cases.

Research findings/Insights – Based on the sample of 83 cases over the 5-year period from 2002 to 2006, this study finds that all the frauds in the sample involved the manipulation, alteration, and falsification of reported financial information. Fraud schemes often contained more than one technique to misstate financial statements, typically through overstating revenues and assets, and understating liabilities and expenses. Most of the sample companies committed several frauds simultaneously. This study also reveals that most of the frauds committed by Chinese listed companies lasted more than 2 years, with the longest being 9 years, and common intervals between the initial fraud year and the announcement year of punishment were more than 3 years, with the longest being 11 years.

Theoretical/Academic implications – This study provides an empirical analysis of fraudulent financial reporting cases committed by Chinese listed companies. These cases were rarely studied in the Western literature. This study contributes to the extant literature by providing an insight into management fraud in China. Research into fraudulent financial reporting in the largest developing economy is certainly of interest as prior research into this area is mostly based on developed economies.

Practitioner/Policy implications – The implications drawn from this study could be useful for a better understanding of the management behavior of companies in developing and transitional economies. This study has a potential to assist regulators and accounting professional bodies to set guidelines facilitating corporate compliance of regulated financial reporting.

Open Access
Article
Publication date: 7 July 2023

Elda du Toit

According to the Association of Certified Fraud Examiners, financial statement fraud represents the smallest amount of fraud cases but results in the greatest monetary loss. The…

4646

Abstract

Purpose

According to the Association of Certified Fraud Examiners, financial statement fraud represents the smallest amount of fraud cases but results in the greatest monetary loss. The researcher previously investigated the characteristics of financial statement fraud and determined the presence of 16 fraud indicators. The purpose of this study is to establish whether investors and other stakeholders can detect and identify financial statement fraud using these characteristics in an analysis of a company’s annual report.

Design/methodology/approach

This study analyses a financial statement fraud case, using the same techniques that were previously applied, including horizontal, vertical and ratio analysis. These are preferred because stakeholders have relatively easy access to them.

Findings

The findings show several fraud characteristics, with a few additional ones not previously found prevalent. Financial statement fraud thus tends to differ between cases. It is also easier to detect and identify fraud indicators ex post facto.

Originality/value

This study is a practical case showing that financial statement fraud can be detected and identified in the financial statements of companies that commit fraud.

Details

Journal of Financial Crime, vol. 31 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 9 December 2022

Md Jahidur Rahman and Xu Jie

This study aims to explore the relationship between fraud triangle theory (FTT) and the accounting fraud phenomenon in all listed companies in China.

Abstract

Purpose

This study aims to explore the relationship between fraud triangle theory (FTT) and the accounting fraud phenomenon in all listed companies in China.

Design/methodology/approach

The CSMAR database is used as the sample, including 16,063 data of all listed companies in Shanghai and Shenzhen markets for the 2010–2020 period. The authors also use quantitative methods, such as regression analysis, to investigate the relationship between five variables (cover three elements of FTT) and fraud occurrence.

Findings

Results show that leverage and liquidity ratios positively affect fraud detection, whereas return on net equity, audit size and independent director percentage negatively affect fraud detection.

Originality/value

This study enriches theoretical research on the causes of accounting fraud in China and is of great significance to the sound development of China’s capital market.

Details

Journal of Financial Crime, vol. 31 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 17 January 2023

Tessa Cole

The criminalization of online financial fraud is examined by analyzing the existing literature, policies and state statutes within the context of the cybercrime ecosystem…

Abstract

Purpose

The criminalization of online financial fraud is examined by analyzing the existing literature, policies and state statutes within the context of the cybercrime ecosystem. Therefore, this paper aims to investigate online fraud policies within the USA and the prevalence of such incidents to explore the effectiveness of current fraud policies.

Design/methodology/approach

This examination explores policies related to online fraud within the USA by defining online financial fraud incidents within the context of the cybercrime ecosystem and analyzing such incidents with routine activities theory to emphasize the current legislative inadequacies with provisional policy recommendations.

Findings

This research suggests online financial fraud is not unanimously conceptualized among regulating or criminal institutions. Although federal regulators have governed financial institutions, federal institutions have failed to account for the capabilities of computer-mediated and technological device use (12 USC §1829).

Research limitations/implications

The limited research analyzing the effectiveness of guardianship that prevents or deters internet-mitigated or dependent financial fraud crimes.

Practical implications

Policy recommendations include but are not limited to mandating federal and privatized financial institutions to disclose all fraudulent activity to all stakeholders (e.g. customers and local and federal criminal justice agencies).

Originality/value

This paper provides an innovative approach using a criminological theory and policy framework to examine the prevalence of online fraud and the regulations enacted to counteract such violations.

Details

Journal of Financial Crime, vol. 30 no. 6
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 26 February 2021

Juan Dempere and Sabir Malik

This paper aims to study the explanatory power of demographics, financial behaviors and financial literacy on instances of consumer financial fraud (CFF) among Emirati households.

501

Abstract

Purpose

This paper aims to study the explanatory power of demographics, financial behaviors and financial literacy on instances of consumer financial fraud (CFF) among Emirati households.

Design/methodology/approach

This study is based on a survey applied to the United Arab Emirates’ (UAE’s) largest federal higher education institution. The authors analyzed the data using generalized linear models, specifically generalized regressions based on both the logit and the probit models. Independent sample tests were also applied to compare the different subgroups considered in this study.

Findings

The authors found that the CFF victims seem to be older with more years of post-secondary education and high monthly credit card balances. When analyzing the probability of Emirati students becoming CFF victims, the authors found that only age, instances of lack of monthly income to cover living costs, and average monthly credit card balance, all have significant and positive explanatory power on the probability of becoming a CFF victim. However, when analyzing the aggregate subsample of all Emirati respondents, only the credit card balance has a positive and significant relationship with such a probability.

Research limitations/implications

The authors used a non-probability sampling method that produced some biases, including a gender bias and an age-related bias. These biases preclude us from making valid inferences and generalizations about the Emirati population.

Originality/value

To the best of authors’ knowledge, no previous research article has studied CFF in the UAE, which constitutes this study’s original contribution.

Details

Journal of Financial Crime, vol. 28 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 5 July 2021

Nadia Smaili, Paulina Arroyo and Faridath Antoinette Issa

The purpose of this study is to investigate whether large blockholders are associated with financial statement fraud at their companies. Although a substantial body of prior…

Abstract

Purpose

The purpose of this study is to investigate whether large blockholders are associated with financial statement fraud at their companies. Although a substantial body of prior studies has focused on chief executive officers’ motivations to manipulate financial statements, the correlation between majority shareholders and financial statement fraud has received little attention. This paper aims to fill this gap by investigating whether the sample firms have controlling shareholders or executives (i.e. blockholders vs management) and whether financial statement fraud schemes, motivations and consequences differ between blockholder- and management-controlled firms.

Design/methodology/approach

Using a clinical approach, the authors Study 12 Canadian financial statement fraud cases uncovered by the Ontario Securities Commission between 1997 and 2020.

Findings

First, the authors find blockholder control in six cases. These findings infer that these large shareholders received private benefits at the expense of minority shareholders. The comparative analyzes suggest that fraudulent firms controlled by blockholders go bankrupt more often than those controlled by managers. The authors also find that improper disclosure is the most common fraud scheme in blockholder-controlled firms.

Originality/value

The authors conduct a deep analysis of financial statement fraud cases to examine the of blockholder control on the likelihood of financial statement fraud. This paper adds new insights to the research on financial crime by investigating whether large shareholders affect the probability of fraud and the extent to which they might do so.

Details

Journal of Financial Crime, vol. 29 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 14 October 2019

Yunita Awang, Abdul Rahim Abdul Rahman and Suhaiza Ismail

This study aims to examine the influence of attitude, subjective norm and adherence to Islamic professional ethics on fraud intention in financial reporting among Muslim…

1444

Abstract

Purpose

This study aims to examine the influence of attitude, subjective norm and adherence to Islamic professional ethics on fraud intention in financial reporting among Muslim accounting practitioners in the Malaysian banking institutions.

Design/methodology/approach

A questionnaire was used for a sample of 121 Muslim accounting practitioners who are participants in the financial reporting process of Malaysian banking institutions. The data are analysed using partial least squares structural equation modelling.

Findings

The study found that attitude and subjective norms are positively significant in influencing fraud intention in financial reporting. In other words, the more the respondents were in favour of fraud and perceived that their referent groups would approve or support the behaviour, the stronger their intentions to commit fraud. On the other hand, the result for Islamic professional ethics is insignificant, which indicates that the Muslim accounting practitioners may not be significantly influenced by the Islamic code of professional ethics on their intention towards fraud in financial reporting.

Research limitations/implications

The study adds to the scant literature investigating factors influencing Malaysian accounting practitioners’ intentions for fraud in financial reporting in the banking sector. The limitations include the use of scenario leading to the issue of social desirability bias and the use of purposive sampling technique that limits the generalizability of the results.

Practical implications

The findings provide potential avenues for Malaysian banking sector managers to enhance their recruitment and training programmes and give some insights to the public, especially the banks shareholders and depositors, into the fraud in financial reporting intention of the actual participants in the financial reporting process.

Originality/value

To the author’s knowledge, this paper is the first to examine, in the Malaysian banking setting, the influence of attitude, subjective norms and adherence to Islamic professional ethics on the fraud intention in financial reporting among accounting practitioners. There are few investigations to date on the factors of influencing or mitigating the accounting practitioners’ intention to commit fraudulent reporting.

Details

Journal of Islamic Accounting and Business Research, vol. 10 no. 5
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 16 May 2022

Alberto Clavería Navarrete and Amalia Carrasco Gallego

The purpose of this paper is to understand if forensic accounting techniques and tools could contribute to the deterrence of fraud in financial statements, considering the…

1730

Abstract

Purpose

The purpose of this paper is to understand if forensic accounting techniques and tools could contribute to the deterrence of fraud in financial statements, considering the expertise of forensic accountant on ex post activities and that the traditional mechanisms to prevent this type of fraud have not been sufficient to stop the impact on companies, investors, auditors, employees and on society in general.

Design/methodology/approach

This research was carried out using a qualitative exploratory study with a phenomenological approach conducted through in-depth interviews with professional experts in the forensic field.

Findings

The findings confirm that the use of forensic accounting techniques and tools could contribute to the prevention of fraud in financial reporting not only when the risk of fraud has been materialized. Similar studies, about fraud prevention addressing the situation under a qualitative approach from the perspectives of its protagonists, have not been observed in the bibliographical review, so this research contributes to expanding the scientific research, the study and practice of forensic accounting.

Originality/value

From a business management perspective, this study contributes a paradigm shift from the traditional ex post forensic auditing activity toward an ex ante activity to improve management control systems within organizations anywhere in the world. Because this study is guided to prevent fraudulent financial statements, other fraud categories such as misappropriation or corruption could be addressed in other studies and various countries.

1 – 10 of over 15000