Misrepresentation of Financial Statements: An Accounting Fraud Case from Turkey

Ilter, Cenap

doi:10.2139/ssrn.2186702

Cited by 5 publications

(8 citation statements)

References 4 publications

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“…It is not adequate for bank employees to have a pressure or motive to perpetrate a fraud, they also have to ensure that opportunity for fraud exists (Ilter, 2009). Multiple studies have been conducted on frauds in financial institutions and concluded that opportunity has a significant positive impact on the occurrence of fraudulent practices (Ilter, et al 2009; Ilter, 2014; Hollow, 2014; Asmah et al , 2020; Kazemian et al , 2019; Suh et al , 2019; Avortri and Agbanyo, 2020; Hidajat, 2020). Poorly defined duties and responsibilities, lack of proper documentation of policies, procedures and guidelines, transactions not recorded in timely manner, unsecured cash boxes, no proper restriction on access to corporate check books and inadequate physical control are the major contributing factors which offers numerous opportunities for unscrupulous employees to commit fraud like asset misappropriation (Kazemian et al , 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

A systematic literature review on frauds in banking sector

Mangala

Soni

2022

JFC

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Purpose Banking industry peculiarly has become soft target for several pernicious deceptive and fraudulent activities. The purpose of this paper is to systematically review the literature published in past 20 years on bank frauds and present a holistic view on causes and consequences of bank frauds and measures to curtail this menace. Towards the end the paper provides avenues for future research. Design/methodology/approach A systematic literature review approach is used in this study and articles are selected via pre-set inclusion criteria. The literature is mapped on the basis of databases, year of publication, country of study and journal of publication. This paper is based on 70 selected articles published in four prominent databases between 2000 and 2021. Findings This study reveals that frauds in banking industry have become a matter of grave concern for almost all countries across the globe, causing significant financial and non-financial damages to banks, customers, other stakeholders and economy. Numerous factors such as pressure and opportunity are responsible for fraud occurrence. This study further evinced that banking institutions inevitably should have a robust fraud risk management in place to prevent, detect and respond to defalcation. Originality/value To the best of the authors’ knowledge, this is the only paper among 70 selected articles which systematically reviews the literature published in past 20 years and provides a comprehensive view on all aspects related to bank frauds.

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Section: Literature Reviewmentioning

confidence: 99%

A systematic literature review on frauds in banking sector

Mangala

Soni

2022

JFC

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“…An attitude, temperament, or set of ethical beliefs exists that allows management or employees to purposefully conduct a dishonest conduct, or they are in an atmosphere that puts enough pressure to induce them to rationalise executing a dishonest conduct, according to (Ilter, 2014). Before engaging in unethical behaviour, the offender must construct some type of ethically acceptable rationale, according to Abdullahi et al (2015).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

The Role of Law Enforcement, Incentives and Opportunity on Effectiveness of Corruption Control: Malaysian Evidence

Kidzir¹,

Kadri²

2022

IJARBSS

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Corruption is a major concern all over the world. More research should be done to identify factors that may contribute to the effectiveness of corruption control. The purpose of this study is to look into the impact of law enforcement, incentives, and opportunities on the success of the anti-corruption programme in Malaysian government institutions. Questionnaires were provided to law enforcement agencies Department A, B, C and D. Based on the Fraud Triangle, a regression model was utilised to assess the relationship between law enforcement, motive, and opportunity, as well as the effectiveness of corruption control. The findings revealed that law enforcement and incentives have a major impact on the effectiveness of anti-corruption efforts. The findings could be used by the Malaysian Anti-Corruption Commission as guideline in the fight against corruption. Future research may be done longitudinally and cross-country. Second, in addition to surveys, other techniques of data collecting should include interviewing and observation. Third, a more comprehensive and larger sample size may be used.

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“…Several studies on fraud or embezzlement (a specific type of fraud) denote the importance that accounting and auditing have for these phenomena (Ilter, 2014a; Shaw and Bologna, 2000; Gottschalk, 2010; Everett et al , 2007; Ozili, 2020; Pedneault, 2010; Rezaee, 2005). On the one hand, many elements connected with accounting and auditing can be exploited by dishonest individuals, such as revenues and income, financial reporting, payments, inventories and bank accounts.…”

Section: Embezzler Test For Standards Norms and Regulationsmentioning

confidence: 99%

“…On the other hand, as is to be expected, accounting and auditing controls can discourage embezzlement (idem). Accounting and auditing thus have a dual role as both are an enabler and potential constrainer (Everett et al , 2007, p. 513; Ilter, 2014a; Johnson, 2001), though accounting and auditing cannot entirely eliminate these phenomena.…”

Section: Embezzler Test For Standards Norms and Regulationsmentioning

confidence: 99%

An embezzler test for norms, standards and regulations

Cardao-Pito

2021

JFC

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Purpose The purpose of this study is to address the question that economic standards, norms and regulations can possess weak spots that might be exploitable for the embezzlement of an organization’s assets with resultant material consequences in money laundering,tax evasion, fraud, corruption and other potential financial crimes. Design/methodology/approach The author’s methodological approach is to introduce and discuss a new logical-deductive test that the author names “embezzler test”. The author’s test investigates regulatory architectures from the perspective of someone attempting to divert assets from or to an organization. It appraises whether a potential embezzler could divert resources without being detected and sanctioned. Findings The embezzler test can be applied to a broad range of standards, norms and regulations. Research limitations/implications This new test can be improved and further calibrated in future research. Practical implications Researchers, regulators and law makers can use the new test to identify and eventually fix weak spots for embezzlement in norms, standards and regulations. Originality/value To the best of the author’s knowledge, such a test has never been formulated or applied before to identify weak spots for potential embezzlement in regulatory architectures.

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Misrepresentation of Financial Statements: An Accounting Fraud Case from Turkey

Cited by 5 publications

References 4 publications

A systematic literature review on frauds in banking sector

A systematic literature review on frauds in banking sector

The Role of Law Enforcement, Incentives and Opportunity on Effectiveness of Corruption Control: Malaysian Evidence

An embezzler test for norms, standards and regulations

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