Internal fraud has been attributed as one of the contributing factors for serious banking crises. Given that opportunity is the pre-eminent cause of white-collar crime, this study attempts to measure the relationships between the perceived 'opportunity reduction' and other fraud risk factors with regard to the 'likelihood of fraud occurrence' in financial institutions. For analysis, the study gathered 395 survey responses from South Korean financial sector. The results of logistic regressions of the study highlight that how to operate control mechanisms combining prevention and deterrence measures (the qualitative aspect of internal control), is more important for preventing fraud than the mere existence of many anti-fraud controls. In addition, the study discovers that the employees of the Korean financial institutions view that the risk of management override of controls is a more critical risk than collusion in their organization.

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Purpose-This paper reviews an array of psycholinguistic techniques that auditors can deploy to explore written and oral language for signs of deception. The review is drawn upon to propose some elements of a forward research agenda. Design/Methodology/Approach-Relevant literature across several disciplines is identified through key word searches of major bibliographic databases. Findings-The techniques highlighted have considerable potential for use by auditors to identify audit contexts which merit closer audit investigation. However, the techniques need further contextual empirical investigation in audit contexts. Seven specific propositions are presented for empirical testing. Originality/Value-This paper assembles literature on deceptive communication from a wide range of disciplines, and relates it to the audit context. Auditors' attention is directed to potential linguistic signals of fraud risk, and opportunities for future research are suggested. The paper is consciousness-raising, has pedagogic purpose, and suggests critical elements for a future research agenda.

Purpose The theory of managerial discretion and the direct insights it provides in the understanding of the varying impact strategic and operational actions have on organizational change and business fortunes is an area of research potential underexplored in the UK. This study aims to establish whether the measurement of managerial discretion is constant between the two similar societal corporate frameworks of the UK and the USA listed markets. Design/methodology/approach The extant managerial discretion ranking model, established in the USA, is empirically assessed for its validity and effectiveness across a sample of high- and low-discretion companies from the FTSE 350. Findings Using accounting measures, a clear and significant difference is established between UK high and low managerial discretion entities. The results prove to be significant in enabling the differential comparative analysis of the institutional characteristics of corporates. Originality/value To the best of the authors’ knowledge, no study of this nature has been conducted previously in the UK context. While the original model developed in the USA is now several decades old, the UK results reflect similar industry rankings as found originally in the USA, subject to some differences considered to be a result of the changing nature of global business since the 1990s. This study opens a new seam of novel research, which has the potential to uncover, at a granular level, the differential mores and character of management ethics, styles and practices in such issues as organizational change, corporate culture, governance and social responsibility.

In today digital investigation, forensic application level information (FALI) has become an important part of digital forensic research. In this research, information stored on Windows computer systems was analysed. The user input gathered from the volatile memory (RAM) of Windows applications has been described as the most important aspect of digital forensic investigation. User input is made at set interval when the application is still opened. This research will report the quantitative assessment of forensically relevant information on Windows application.