When and why (honest) people commit fraudulent behaviours?

Maulidi, Ach

doi:10.1108/jfc-05-2019-0058

Cited by 14 publications

(15 citation statements)

References 44 publications

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“…For example, whilst many scholars believe that their proposed frameworks (which are associated with internal control, ethical culture and management review) can deter any types of illegality, they, however, have limited effectiveness in practice (Wurthmann, 2020; Bierstaker et al , 2006; Adams et al , 2006). As explained by prior studies (Maulidi, 2020; Ormerod et al , 2012; Dai et al , 2017), organisations need to further understand the context to control the risk of fraud.…”

Section: Introductionmentioning

confidence: 99%

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Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud

Maulidi

Ansell

2021

JFC

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Purpose The purpose of this study is to provide theoretical guidance that enables local governments to deal with occupational fraud. Design/methodology/approach The quantitative approach is used to examine the efficacy of the Committee of Sponsoring Organisations of the Treadway Commission (COSO) internal control framework in tackling occupational fraud in local government. To achieve the goals, the authors performed a survey of the Indonesian auditor institutions. Findings It is not appropriate to argue that all types of local government fraud can be deterred by a single internal control. The study suggests that COSO internal controls are not effective for dealing with corruption cases. However, the authors do find the efficacy of those controls are obvious for controlling asset misappropriation and financial statement fraud. This result indicates that if the COSO internal control framework is only designed for routine financial control and asset protection, it significantly and negatively influences its efficacy to deal with occupational fraud. This study has both theoretical and managerial implications, discussed separately. Originality/value In the field of prevention, the authors cannot make generalised theories and approaches for dealing with occupational fraud. Whilst previous authors have offered fraud deterrents in terms of internal controls, they have failed to realise the need to understand their effectiveness for particular forms of fraud. This paper sheds light on the effectiveness of internal controls in achieving their goals. This has both practical applications and stimulates theoretical insights.

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Section: Introductionmentioning

confidence: 99%

“…Of course, it becomes a serious challenge for organisations and regulatory agencies. As Maulidi (2020) have been explained, organisation and regulatory agencies are required to understand fraud prevention beyond the structural factors that motivate offenders to commit illegal acts.…”

Section: Introductionmentioning

confidence: 99%

Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud

Maulidi

Ansell

2021

JFC

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“…Within public sector organisations, particularly local government, the causes of organisational fraud are complex. The perpetrators are not only dishonest people but also honest people (Maulidi, 2020a; Sulitzeanu-Kenan et al , 2022). As such, their involvements of the current study is helpful to design preventive measures of organisational fraud.…”

Section: Methodsmentioning

confidence: 99%

Philosophical understanding of the dynamics and control of occupational fraud in the public sector: contingency analysis

Maulidi

2022

IJOES

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Purpose This study aims to examine the roles of organisational control, structure, culture and technology in preventing occupational fraud. This study is essential in the current time. It brings a significant impact on both theory and practice. In the existing studies, there is a lack of clarity on a specific mechanism to prevent organisational fraud. The problem is that they tend to generalise the types of organisational fraud. Conceptually, organisational fraud may include corruption, double funding, asset misappropriation, bribery or falsification of documents. However, many scholars tend to neglect such diversities. Consequently, many occupational fraud cases become unstoppable, particularly corruption. To deal with this topical issue, the current study applies the term “occupational fraud” cited by the Association of Certified Fraud Examiners, consisting of corruption, asset misappropriation and fraudulent financial statement. Design/methodology/approach This study surveyed three Indonesian Local Governments. This study focussed on management levels that have strong power for coordinating governmental activities. The author chose these local governments because their local leaders (the regents) were jailed due to corruption scandals. As expected, this study gives us different perceptions of how fraud mitigation should be designed in the organisation. Findings The results suggest that corruption is a little bit complex than other types of occupational fraud. It is improbable to be prevented through technological and administrative approaches. As such, organisations need to think of extra efforts that could perfectly tailor the organisational control and organisational culture, organisational structure and technological advancement. The benefit of this effort is related to diagnosing the fit or misfit of organisation designs in addressing the dynamic dimensions of corporate governance. Then, it can also strengthen the efficacy of preventive measures to deal with occupational fraud. Originality/value This study provides a provocative discussion regarding the public perception of occupational fraud, consisting of corruption, asset misappropriation and financial statement fraud. And this study also offers a new refined conceptual analysis of how to deal with such types of occupational fraud by incorporating contingency theory and the Committee of Sponsoring Organizations of the Treadway Commission (COSO’s) internal control components.

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“…These three factors (Maulidi 2020) that influence the commission of fraud are presented as a triangle of fraud (Homer 2020).…”

Section: Theoretical Aspects Of Researchmentioning

confidence: 99%

Anti-Fraud Strategy

Todorović

Tomaš

Todorović³

2020

Economics

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Fraud is not an individual problem, but rather, we deal with a systematic fraud, particularly in the public sector through the creation of a private monopoly over public sector. Therefore, the first step, which needs to be set in organization in order to develop an efficient system for fraud control is development of anti-fraud strategy. Anti-fraud strategy is based on a policy of integrity and zero tolerance for fraud. Under the fraud we imply: corruption, assets misappropriation and fraudulent statement. Fraudsters are in the organization and beyond. Factors influencing performing of fraud are: pressure, opportunity and rationalization. Costs incurred due to the fraud may be difficult to realistically consider. Battle against fraud is determined by political will, effective legislation and anti-fraudulent culture and strategy.

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When and why (honest) people commit fraudulent behaviours?

Cited by 14 publications

References 44 publications

Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud

Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud

Philosophical understanding of the dynamics and control of occupational fraud in the public sector: contingency analysis

Anti-Fraud Strategy

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