Managerial Auditing Journal · 1995 · 47 citations · 4 references
Fraud DetectionAuditingInternal Accounting ControlsInformation SecurityAccountingManagementFraud Risk ManagementBusinessInformation ForensicsCorporate CultureAudit RegulationFraud ExaminationLoss PreventionAccounting AuditFinancial CrimeFinancial Statement Fraud Detection
Auditors traditionally emphasize internal controls, but corporate culture offers a broader view, and fraud costs over $100 billion annually, highlighting persistent detection challenges. The study proposes a fraud‑detection model that extends beyond internal controls by assessing corporate culture and organizational behavior to reduce fraud’s social and economic impact. The model evaluates corporate culture and organizational behavior, providing recommendations for a new framework to detect fraud opportunities.
Proposes a new model for fraud detection that goes beyond internal accounting controls. Historically, internal and external auditors focus on internal controls and management integrity as the key components to determine the propensity for irregularities. This new paradigm focuses on gaining an understanding of the corporate culture in order to understand better the opportunity for fraud or illegal acts to occur. Corporate culture provides a more holistic and comprehensive view of the overall management philosophy and control environment. Various sources from practitioners, corporate executives to government agencies estimate that the annual cost of fraud exceeds $100 billion. Recognizes the economic impact of fraud and the historical problems associated with fraud detection. Offers recommendations and discussion for a new model to evaluate organizational behaviour as an alternative method to fight the social and economic cost of fraud.
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