Organisational susceptibility to fraud and theft, organizational size and the effectiveness of management controls: some UK evidence

Barnes, Paul; Webb, Jill

doi:10.1002/mde.1320

Cited by 4 publications

(3 citation statements)

References 18 publications

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“…In addition, large organizational size was also positively associated with the odds of reporting the occurrence of occupational fraud at a one percent confidence level (p < 0.01). A study by Barnes and Webb (2007) similarly found that the vulnerability to internal fraud increased the greater the size of an organization. This can be explained in terms of Routine Activity Theory (Felson, 2002).…”

Section: Discussionmentioning

confidence: 96%

The effects of reducing opportunity and fraud risk factors on the occurrence of occupational fraud in financial institutions

Suh

Nicolaides

Trafford

2019

International Journal of Law, Crime and Justice

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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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Section: Discussionmentioning

confidence: 96%

The effects of reducing opportunity and fraud risk factors on the occurrence of occupational fraud in financial institutions

Suh

Nicolaides

Trafford

2019

International Journal of Law, Crime and Justice

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“…In small companies, there is a lack of separation of duties, and control action is vital to avert fraud. The findings of Barnes and Webb (2007) revealed that company size impacts the vulnerability to fraud and the subsequent harms.…”

Section: Research Hypothesis Developmentmentioning

confidence: 99%

Leveraging computer-assisted audit tools for corporate sustainability: Evidence from Ethiopia

Wassie

2023

J. Infras. Policy. Dev.

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The existing ample literature studied the factors for adopting computer-assisted audit techniques (CAATs) by internal and external auditors, frequently ignoring their impact on the quality of audits and companies’ efficiency. This study delivers new evidence on the kinds of CAATs utilized by internal auditors, examines their adoption impact on corporate sustainability, and studies the moderating impact of company characteristics. This study used data from internal auditors in Ethiopia gathered using a survey, and the study hypotheses were tested using the partial least squares-structural equation modeling (PLS-SEM) technique. The study found a moderate utilization of CAATs by internal auditors in executing their activities. The result also revealed a highly positive impact of internal auditors’ CAAT utilization on fraud discovery in the acquisition process. The study found that the intensity of this relationship is impacted by the companies’ characteristics of management commitment. However, the size and type of the company are not impacting it. This study finding complements prior studies and helps practitioners make decisions that can improve CAAT utilization in internal audit functions for a high level of companies’ sustainability.

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“…According to Singleton et al [47], size is reflected in the following points: (i) fraudulent financial reporting is more likely to occur in large organizations, whereas misappropriation of assets occurs more in small organizations; (ii) large organizations have more resources to improve internal control and invest in internal audit and fraud prevention and detection programs; and (iii) segregation of duties is insufficient or absent in smaller organizations, and this control activity is relevant to preventing fraud. Barnes and Webb [81] found that susceptibility to fraud and the resulting losses are affected by organizational size.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Effect of Computer Assisted Audit Tools on Corporate Sustainability

Samagaio

Diogo

2022

Sustainability

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The literature is fertile in studies that examine the determinants of internal and external auditors’ adoption of computer-assisted audit tools and techniques (CAATs), often ignoring their practical effects on audit quality and organizational performance. This study provides novel evidence on the type of CAATs used by internal auditors, tests the effect of their adoption on corporate sustainability, and explores the moderating effect of organizational characteristics. In this paper, we used data from Portuguese internal auditors collected through a survey, whose research hypotheses were analyzed by the partial least squares–structural equation modeling technique. We found that internal auditors use CAATs moderately in the exercise of their tasks. The results of our study show that there is a strong and positive effect of the use of CAATs by internal auditors on fraud detection in the purchase-to-pay business process, and that the intensity of this relationship is not influenced by the type and size of the entity. This study complements previous research and provides support to practitioners’ decisions that can boost the use of CAATs in internal auditing to make organizations more sustainable.

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Organisational susceptibility to fraud and theft, organizational size and the effectiveness of management controls: some UK evidence

Cited by 4 publications

References 18 publications

The effects of reducing opportunity and fraud risk factors on the occurrence of occupational fraud in financial institutions

The effects of reducing opportunity and fraud risk factors on the occurrence of occupational fraud in financial institutions

Leveraging computer-assisted audit tools for corporate sustainability: Evidence from Ethiopia

Effect of Computer Assisted Audit Tools on Corporate Sustainability

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