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1 – 10 of over 3000
Article
Publication date: 5 May 2015

Tyge-F. Kummer, Kishore Singh and Peter Best

The purpose of this study is to investigate the effectiveness of fraud detection instruments in not-for-profit (NFP) organizations. Not-for-profit organizations rely on trust and…

4466

Abstract

Purpose

The purpose of this study is to investigate the effectiveness of fraud detection instruments in not-for-profit (NFP) organizations. Not-for-profit organizations rely on trust and volunteer support. They are often small in size and do not have relevant expertise to prevent fraud. Such organizations are more vulnerable to fraud and, consequently, require effective fraud detection instruments. The existing literature on fraud detection is primarily descriptive and does not measure instrument performance. The authors address this research gap and provide a detailed overview of the impact of nine common fraud detection instruments.

Design/methodology/approach

Data were obtained from an NFP fraud survey conducted in Australia and New Zealand. A set of contingency tables is produced to explore the relationship between the existence of a specific fraud detection instrument and actual detection of fraud. We also investigate the relationship between organization size and fraud detection strategy.

Findings

The findings provide valuable insights into understanding fraud detection mechanisms. Although most fraud detection measures may not lead to more fraud detection, three highly effective instruments emerge, namely, fraud control policies, whistle-blower policies and fraud risk registers. The results also reveal that commonly used fraud detection instruments are not necessarily the most effective. This is true in a significant number of small organizations that appear to be focusing on ineffective fraud detection instruments.

Practical implications

Implementation of more effective fraud detection measures will reduce the damage caused to an organization and is highly relevant for practitioners.

Originality/value

The results show that differences in the effectiveness of fraud detection instruments in the NFP sector exist. This knowledge is directly applicable by related organizations to reduce fraud damage.

Details

Managerial Auditing Journal, vol. 30 no. 4/5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 22 January 2020

Alan Doig and Peter A. Sproat

The purpose of this paper is to research how local councils in England responded to a national initiative intended to address the risk of the involvement of organised crime in…

Abstract

Purpose

The purpose of this paper is to research how local councils in England responded to a national initiative intended to address the risk of the involvement of organised crime in local government procurement fraud. In so doing, it considers definitional issues before undertaking original research to explore how councils responded and, through in-depth interviews with three councils, what initial explanations may explain the responses. It concludes that the national initiative was insufficiently thought-through, and that councils’ responses were significantly influenced by the relevance of the threat of organised crime, financial constraints and competing priorities.

Design/methodology/approach

The case study involves a literature review, an analysis of official documentation, a questionnaire to local councils in the north of England and semi-structured interviews with anti-fraud practitioners in three councils in the northeast of England. The approach is to provide an analysis of the implementation of a national initiative to promote a local government response to procurement fraud by organised crime.

Findings

On the basis of original research, the paper proposes that the national initiative was insufficiently thought-through, and that councils’ responses were influenced by the relevance of the threat of organised crime, financial constraints and competing priorities.

Research limitations/implications

The research looks at a national initiative and how local councils responded within the context of financial and other constraints. The research is limited in terms of the range of responses it sought, and that it only studied the experience of three local councils in detail. On the other hand, its findings support further research into the implementation of national initiatives in terms of practice on the ground.

Practical implications

The findings identify issues surrounding the design and implementation of national anti-fraud policies from the perspective of local government and will be of value to practitioners and academics interested in fraud, policing, organised crime, local government and policy making.

Originality/value

The paper is the first study in the UK on the local implementation of national strategies on procurement fraud and organised crime and raises positive and less-positive aspects of how far national strategies and intentions are addressed on the ground, with a focus on what factors may influence local implementation.

Details

Journal of Financial Crime, vol. 27 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 5 June 2020

Ludek Seda and Carol Ann Tilt

This paper aims to investigate the disclosure of fraud-related activities in public sector organisations in Australia. Specifically, the study reviews and evaluates the level and…

Abstract

Purpose

This paper aims to investigate the disclosure of fraud-related activities in public sector organisations in Australia. Specifically, the study reviews and evaluates the level and nature of fraud control information in annual reports of Commonwealth agencies and bodies.

Design/methodology/approach

The study uses a qualitative approach with the aim of expanding the body of empirical literature on disclosure of fraud control information in annual reports. The study further uses the theory of accountability – an essential concept for organisations that exist for public interest.

Findings

The results show that there is some prima facie evidence of public accountability. However, these results suggest that current disclosures of fraud-related activities in annual reports are failing to ensure the public is aware of activities used to combat fraud and its implications for the public interest.

Practical implications

The results have important implications for developing a framework for good reporting of fraud control activities.

Originality/value

This research study adds to the limited body of knowledge regarding how public entities discharge their accountability in relation to their fraud control activities.

Details

Journal of Financial Crime, vol. 30 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 April 2000

C. Koornhof and D. du Plessis

There is increasing international concern about the escalation of fraud and, in particular, financial statement fraud. Detecting financial statement fraud and proving such fraud

1637

Abstract

There is increasing international concern about the escalation of fraud and, in particular, financial statement fraud. Detecting financial statement fraud and proving such fraud remains an elusive goal. Red flagging is an early warning system that has been used by auditors to determine the probability of financial statement fraud. The purpose of this research project was to survey investors and lenders in South Africa on their use of red flags and to obtain their opinions on the relative importance of individual red flags. A questionnaire was sent to banks that are registered with the Registrar of Banks (representative of lenders) and to portfolio managers registered with the Financial Services Board (representative of investors). The research findings indicate that lenders and investors in South Africa appear to be aware of the benefits of red flagging as an early warning system. A structured approach (questionnaires/checklists) in using them is to be lacking at present. Respondents rated all red flags in the questionnaire as being important. No distinction was discernable among the different categories that were based on the nature of red flags.

Details

Meditari Accountancy Research, vol. 8 no. 1
Type: Research Article
ISSN: 1022-2529

Keywords

Article
Publication date: 14 May 2019

Elizabeth Toomey

On 12 November 2018, New Zealand's Land Transfer Act 2017 came into force. The purpose of this paper is to pinpoint some of the significant changes in the Act that challenge the…

Abstract

Purpose

On 12 November 2018, New Zealand's Land Transfer Act 2017 came into force. The purpose of this paper is to pinpoint some of the significant changes in the Act that challenge the fundamental concepts of the Torrens system of registration.

Design/methodology/approach

The paper addresses three significant reforms: a definition of land transfer fraud; the concept of immediate indefeasibility with limited judicial discretion and its impact on volunteers and the Gibbs v. Messer anomaly; and the compensation regime. Case studies illustrate the effect of these changes.

Findings

The limited legislative definition of fraud reflects the common law and allows for any necessary flexibility. The new Act reiterates the principle of immediate indefeasibility but qualifies it with the introduction of some judicial discretion. This is a novel concept for the courts and will undoubtedly be dealt with cautiously. The author voices some disquiet with regard to some of the guidelines set out in s 55(4) of the Act. The compensation provisions introduce an element of an owner's culpability. An owner now runs the risk of reduced compensation if there has been a lack of proper care.

Research limitations/implications

The implications of this research are fundamental for New Zealand's land transfer system.

Practical implications

The limited judicial discretion will challenge the courts of New Zealand. The new compensation provisions will ensure that an owner's carelessness will be accountable.

Originality/value

This study is one of the first to analyse the Land Transfer Act 2017 (New Zealand). Its value extends beyond New Zealand shores as it has implications for global land transfer systems.

Details

Journal of Property, Planning and Environmental Law, vol. 11 no. 2
Type: Research Article
ISSN: 2514-9407

Keywords

Article
Publication date: 12 October 2010

Dharmvir Singh

The objective of this research paper is to identify specific attributes associated with the shell companies, so that the frauds committed by misuse of the corporate vehicle are…

1449

Abstract

Purpose

The objective of this research paper is to identify specific attributes associated with the shell companies, so that the frauds committed by misuse of the corporate vehicle are curbed. The presence of an identified attribute increases the fraud risk the company poses to the economic system. The efficient allocation of limited investigative resources may accordingly be made by the regulator.

Design/methodology/approach

The research was designed as a case study involving documentary evidence corroborated by archival records and semi‐structured interview. The paper discusses the identification of attributes associated with shell companies and suggests recommendations for corporate regulatory machinery in India.

Findings

The research paper has identified a few attributes associated with the shell companies. These attributes are directly related to the fraud risk an incorporated entity may pose to the economic system. Limited resources may be efficiently deployed on the basis of the risk an entity poses to the system.

Research limitations/implications

The findings of the research are yet to be verified and authenticated by an independent study. However, the findings have a wider implication with respect to more efficient deployment of investigative resources dependent on the risk parameters.

Originality/value

The research paper is a pioneer effort in the field of frauds by misuse of a corporate vehicle.

Details

Journal of Financial Crime, vol. 17 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 March 2002

This guide is compiled in order that banks may see the extent of the overall problem of fraud and money laundering in documentary credit transactions. It also contains advice on…

1609

Abstract

This guide is compiled in order that banks may see the extent of the overall problem of fraud and money laundering in documentary credit transactions. It also contains advice on how banks and bankers may protect themselves and their staff from the consequences of fraudulent attacks against the system.

Details

Journal of Money Laundering Control, vol. 5 no. 3
Type: Research Article
ISSN: 1368-5201

Article
Publication date: 1 March 1999

K.H. Spencer Pickett

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the…

39985

Abstract

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the main themes ‐ a discussion between Bill and Jack on tour in the islands ‐ forms the debate. Explores the concepts of control, necessary procedures, fraud and corruption, supporting systems, creativity and chaos, and building a corporate control facility.

Details

Management Decision, vol. 37 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 June 1998

K.H. Spencer Pickett

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the…

38379

Abstract

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the main themes ‐ a discussion between Bill and Jack on tour in the islands ‐ forms the debate. Explores the concepts of control, necessary procedures, fraud and corruption, supporting systems, creativity and chaos, and building a corporate control facility.

Details

Managerial Auditing Journal, vol. 13 no. 4/5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 16 October 2007

Konstantin V. Pashev

The paper sets out to study value added tax's (VAT's) exposure to missing‐trader or carousel fraud and possible countermeasures, their costs and benefits.

1711

Abstract

Purpose

The paper sets out to study value added tax's (VAT's) exposure to missing‐trader or carousel fraud and possible countermeasures, their costs and benefits.

Design/methodology/approach

It studies the modus operandi of network fraud by distinguishing it from individual evasion. Drawing on the experience of Bulgaria, it discusses the costs and benefits of the principle of joint liability and of the VAT account, the latter being tried so far only in Bulgaria.

Findings

The study concludes that the possible solutions are in the field of optimizing risk management and the application of the principle of joint liability rather than through tighter controls at entry and on the conduct of business.

Originality/value

Confronted with the drastic increase of carousel fraud, the European Commission identified the urgent need of a coherent strategy to combat it. Yet, neither the literature nor the practices of tax and law enforcement have addressed the threat adequately. Tax evasion literature is focused on the drivers and deterrents of individual evasion, while studies of VAT network crime rarely consider the preventive instruments' extra compliance costs for taxpayers. In this context, Bulgaria's unique experience with the VAT account provides useful insights to policy makers about its limitations and the application of the joint liability principle.

Details

Journal of Financial Crime, vol. 14 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

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