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The purpose of this paper is to examine the available judicial precedence using both the United Arab Emirates and UK laws to bring up a much broader understanding of wrongful and fraudulent trading concepts and provide a critical analysis of potential personal liabilities of directors in the UK and UAE jurisdictions for the acts of fraud and mismanagement.

This paper seeks to understand corporate fraud from the aspect of trading. It will take an in-depth look into wrongful trading and fraudulent trading in the UAE and UK jurisdictions while analyzing the punishment for the same. The study will also look at famous cases for the same while seeking to understand the mitigation measures undertaken in various nations across the world.

The author studies the contents and provisions of the UK Insolvency Act 1986, truly the concepts of wrongful trading and fraudulent trading are not explicitly mentioned in the UAE Law, but the said terms associated with “lifting of corporate veil” are notionally existent under the UAE Federal Law No2/2015, otherwise known as Companies Law (Articles 84 and 162-1), and under the UAE Bankruptcy Law (Federal Decree Law No. 9 of 2016), which provides legislation governing trading while the company is insolvent.

In the current paper, the author is keen to examine the available judicial precedence to bring up a much broader understanding of the mentioned concepts and provide a critical analysis of potential personal liabilities of directors in the UK and UAE jurisdictions for the acts of fraud and mismanagement.

The directors of a company owe certain duties to the company itself as a legal entity distinct from its members. They also owe duties to its shareholders in prescribed circumstances, and to a lesser degree to the company's creditors. This paper, inter alia, examines the circumstances in which breach of the duties owed by the directors of the company to its creditors may give rise to criminal responsibility. Central to this analysis is an exposition of the concept of fraud and its associated concept of dishonesty generally and an analysis of the interpretation by the courts of the nature and ambit of s. 458 of the Companies Act. Finally consideration will be given as to how this offence may be affected by the proposals of the Law Commission in its Consultation Paper No. 155 as to the future role of fraud and dishonesty in offences.

This paper aims to investigate the views of employees on the motives behind frequently reported fraudulent activities at the workplace. Using the fraud triangle theory (FTT) as the theoretical lens, the study examines the effect of pressure, opportunity and rationalization on fraudulent acts by employees at the workplace.

The study follows a correlational quantitative approach using questionnaires as the main data collection tool. A total of 243 valid responses from employees working in different state-owned enterprises in Ghana were used in the empirical analysis. The hypothesized relationships of the study were tested using the partial least square-structural equation modelling technique.

The results from the structural analysis showed that pressure, rationalization and opportunity are important in explaining why employees engage in fraudulent activities at the workplace.

The findings do not only provide empirical support for the applicability of the FTT in the Ghanaian context but most importantly offer some useful insights into the fraud discourse from the public sector workers’ perspective.

This study aims to examine the effects of fraud triangle (pressure, opportunity and rationalization) on individual fraudulent behavior in Indonesian public procurement. Empirical research in this area is relatively sparse.

Data were collected using laboratory experiments.

The results revealed that fraudulent behavior is higher when an individual has high pressure and high opportunity. These factors play an important role in determining individual rationalization. Most of participants used “displacing responsibility” to rationalize their actions. This study also demonstrated that negative affect mediates the relationship between fraudulent behavior and rationalization.

First, fraudulent behavior research cannot be separated from social desirability bias. Second, the experiments only involved individual decision-making, not in groups. Finally, this study did not examine the effectiveness of rationalization in reducing negative affect.

Over the years, the government has only focused on the identification of pressure and reduction of opportunities, but ignored individual psychological reasons. Considering that procurement fraud is always increasing, the government must more focus on individual reasons to design an effective prevention and detection system.

There are various conflicts of interest in public procurement budgeting. These conflicts can distort resource allocation and causes budget leakage. As a result, the government is incapacitated to achieve social and economic goals of the community.

There is limited research about fraud in public procurement budgeting, especially in developing countries. In addition, the fraud triangle research, which focuses on rationalization is still limited.

This paper aims to discuss the factors that cause individuals to commit fraud, especially in the public procurement context. All this time, an empirical review of public procurement fraud has only focused on the macro and micro level, as well as its losses on the country's economy. This paper highlights individuals’ fraudulent behavior from the four elements of the fraud diamond theory, namely, pressure, opportunity, rationalization and capability.

This paper is a literature review that discusses the fraudulent behavior of bureaucrat as a procurement official in the context of public procurement. This review uses fraud diamond theory as its theoretical framework to explain the attributes to do fraud.

Public procurement is a high-risk area for fraud (corruption), particularly in the government institution. It cannot be denied that the situation factor (pressure and opportunity) will interact with psychological aspects (rationalization) and individual capability to direct the individuals to commit fraud. This study discusses how existing pressure (motivation) and opportunities are used by individuals who have the capability to rationalize their actions. This literature review also endeavors to shed light on the strategy to prevent, detect and control the causes of fraud.

This paper provides an understanding of regulators, auditors and other employees in recognizing the characteristics and nature of fraud antecedents. This understanding can help prevent various forms of procurement fraud that occur within their organizations. This paper also can be a guideline to assist public sector organizations in designing effective internal control systems to prevent fraud in the process and practice of public procurement.

Public procurement has a central role that enables the government to allocate the budget effectively and efficiently. Compliance in implementing procurement rules and procedures will improve the quality of public services.

There exists relatively little study outlining the factors underlying of bureaucrats’ (procurement official) opportunistic behavior on procurement activities. The authors focused on bureaucrats’ behavior because they have unique positions of power and responsibility of the procurement process. On the one hand, they have a crucial role in serving the public and safeguarding public assets. On the other hand, they have the ability to collaborate with politicians and business actors in corrupt procurement practices. Therefore, the discussion on this topic is very relevant and interesting.

Anomia describes the individual’s lack of integration in social life. The construct has been linked to various types of activities and concepts but no research appears to have been undertaken linking it to deviant behaviour inmarketing. In this preliminary study the literature on anomia and deviant behaviour, specifically attitude toward fraudulent behaviour among retail employees and academic misconduct among students, are examined. Hypotheses are formulated, measurement instruments are identified and two surveys are carried out, one among employees of a large retail chain and another among business undergraduate students. The psychometric properties of the instruments are confirmed and relationships are investigated using regression equations. The implications for theory are considered, limitations are noted and directions for future research are indicated.

The purpose of this paper is to examine the relationship between fraudulent financial reporting and firms' characteristics, i.e. size, type of ownership and audit quality in companies audited by the Inland Revenue Board of Malaysia (IRBM) after the implementation of a self assessment system in Malaysia.

The paper employs an empirical research design, using data on companies audited by IRBM. The hypotheses of the study are tested using both univariate and multivariate statistical methods.

It was found that company size and audit quality have significant negative relationships with fraudulent financial reporting.

The sample of companies used in this study is unlisted companies and the results are not generalisable to listed companies. Listed companies may have more stringent rules for listing and have better corporate governance mechanisms within the company as control.

The paper's findings may assist IRBM in identifying possible cases for audit in the future.

The paper describes the first empirical study that uses real tax cases where the non‐compliance with the Malaysian statues and tax laws are used as the measurement of the fraudulent financial reporting.

The purpose of this paper is to provide a warning sign for fraud studies in developing occupational fraud deterrent, and offer possible solution to deal with it.

This study was conducted in one of regencies in Indonesia. The authors interviewed nine top managers across local agencies and four senior local government internal auditors. The people involved have formal and informal networks with a regent who has been arrested by Indonesia’s Corruption Eradication Commission, because of white-collar crime syndicates, when running governmental systems.

While many approaches to fraud mitigation have been proposed, organisations in practice particularly in the public sector find it hard to implement successful methods to understand, detect and prevent fraud. In practice, this occurs due to simplified assumption on or multiplicity of overlapping fraud concepts. There is also a lack of appreciation of impact of organisational dynamics which facilitates fraud. Behavioural and political issues within an organisation need to be addressed when proposing fraud prevention. The study emphasises that it is too naïve to offer internal control as one-size-fits-all fraud prevention. For practitioners, corrupt behaviour tends to be the most challenging part, compared to other fraud schemes such as asset misappropriation and financial statement fraud. In this paper, the authors urge organisation to adapt a more systematic approach, involving across governmental anti-corruption agencies and civil society actors. This may be facilitated through communication among those parties, including a sound whistleblowing system. Then, organisation also should consider preventive measures that go beyond from administrative or technical internal controls.

The results may give new directions for designing fraud prevention.

The purpose of this paper is to examine failures in internal and external controls associated with sovereign wealth funds (SWFs), using three caselets to illustrate the fraud triangle theory factors.

This study uses a qualitative research approach. Caselets are used to illustrate the fraud triangle factors associated with SWFs.

Ideally, SWFs would be characterized by opacity and the strategic flexibility to advance political goals, but this operational agility facilitates an environment ripe for fraud, in large part because there is little transparency with regard to their regulatory structure. Elements of the fraud triangle inherent in the structure of SWFs contribute to the fraud found in the three case examples.

The authors use three SWF fraud cases rather than statistical sampling of all SWFs, which limits the generalizability of the findings. Future research should explore additional recommendations for the evaluation of SWF governance.

The overlap between public sector governance and SWF governance creates an environment amenable to fraud, and as a result, fraud has occurred in several SWFs. Governance recommendations should take into account the lessons learned from previous SWF fraud cases.

Ideally, SWFs would be characterized by opacity and the strategic flexibility to advance political goals, but this operational agility may also facilitate an environment ripe for fraud, in large part because there is little transparency with regard to their regulatory structure.

To the best of the authors’ knowledge, this paper is the first to identify the fraud triangle risk factors associated with sovereign wealth funds using SWF fraud caselets.

The various forms of retribution that whistle blowers endure, at the hands of their employers, both financially and psychologically for having attempted to correct mismanagement, fraud, and dishonesty are often times too much for the whistle blower to bear (Glazer and Glazer, 1986, August). Careers are put into jeopardy because individuals with strong ethics decide to pursue lawsuits against their employer. For instance, US Forest Service employees have found their careers ruined through either demotions or loss of job when caught speaking out in favour of the environment or sound science, or when simply obeying the law (Schneider, 1991, July/August).