scholarly journals The effect of internal control on asset misappropriation: The case of Vietnam

2018 ◽  
Vol 14 (4) ◽  
pp. 941-953 ◽  
Author(s):  
Manh Dung Tran ◽  
Thi Thu Ha Le
Keyword(s):  
Internal Control ◽  
Asset Misappropriation

Examining fraud risk factors on asset misappropriation: evidence from the Iranian banking industry

2019 ◽  
Vol 26 (2) ◽  
pp. 447-463 ◽  
Author(s):  
Soheil Kazemian ◽  
Jamaliah Said ◽  
Elham Hady Nia ◽  
Hamidreza Vakilifard
Keyword(s):  
Internal Control ◽  
Banking Industry ◽  
Primary Data ◽  
Future Research ◽  
Content Type ◽  
Fraud Risk ◽  
Market Shares ◽  
Asset Misappropriation ◽  
Managerial Implications ◽  
Survey Questionnaires

PurposeThe paper aims at examining the influences of the elements of fraud diamond on the asset misappropriation within the banking industry of Iran. Primary data were collected through 191 survey questionnaires administered among employees of the top three banks in Iran, which own above 60 per cent of market shares in the banking industry of the country.Design/methodology/approachPrimary data were collected through 191 survey questionnaires administered among employees of the top three banks in Iran, which own above 60 per cent of market shares in the banking industry of the country.FindingsResults strongly supported that all four elements of fraud risk significantly influence bank employee asset misappropriation in Iran. To minimize employee fraud, the banking industry should reduce opportunities and employee negative rationalization through strong internal control.Research limitations/implicationsThe findings of this study are useful for policymakers, bank managers, industry practitioners and academics to understand and subsequently implement strategies to mitigate asset misappropriation.Practical implicationsManagerial implications, limitations of the study and suggestions for future research are also included in this paper.Originality/valueThe main value of this paper is the determination of the key variables that constitute the fraud diamond theory and its dimensions on the asset misappropriation within the banking industry in Iran.

scholarly journals Pengaruh Aktivitas Pengendalian terhadap Risiko Penyalahgunaan Aset pada Bank Perkreditan Rakyat (BPR)

2020 ◽  
Vol 15 (1) ◽  
pp. 57-72
Author(s):  
Hera Khairunnisa ◽  
Sumardi ◽  
Bambang Tutuko ◽  
Christian Wiradendi Wolor
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Internal Control ◽  
Survey Method ◽  
Control Activity ◽  
Rural Credit ◽  
Control Framework ◽  
Asset Misappropriation ◽  
Strongly Agree ◽  
Activity Variables

The purpose of this study was to analyze the effect of control activities on the risk of asset misappropriation in Rural Credit Banks (BPR). This study uses a survey method using some questionnaires. The questionnaires were distributed to 30 BPR employees in most Jabodetabek areas. The collected questionnaires were analyzed using multiple regression analysis. Control activity variables are adopted from the COSO internal control framework. Control activity variables are devided into three sub-variables. Asset misappropriation in this study uses indicators from the previous studies. Measurement of control activity variables and risk of asset misappropriation in this study using a likert scale, 1 means strongly disagree and 5 means strongly agree. The results of the study indicate that the development of internal control activities has an effect on the risk of asset misuse in BPR. While the variable development of technology-based control activities and the variable realization of control activities have no effect on the risk of misuse of assets in BPR.

AIM Corporation: A Business Fraud Case Study

2018 ◽  
Vol 3 (1) ◽  
pp. A37-A51
Author(s):  
Thomas R. Weirich ◽  
Natalie Tatiana Churyk
Keyword(s):  
Graduate Students ◽  
Case Studies ◽  
Internal Control ◽  
Fraud Triangle ◽  
Occupational Fraud ◽  
Asset Misappropriation ◽  
Internal Control Weaknesses

ABSTRACT The Association of Certified Fraud Examiners (2016) indicates that asset misappropriation is the most common form of occupational fraud. Based upon a real company, this case contains six frauds: collusions, commissions, fictitious sales, rebates, refunds, and write-offs. It also includes several asset misappropriation (e.g., theft of cash, misuse of inventory, and fraudulent reimbursement) schemes. Furthermore, four of the six frauds are not found in other published case studies. The case seeks to enhance learning by having students (1) examine multiple fraudulent schemes within a single company, (2) identify frauds after examining firm procedures and documents, (3) suggest applicable fraud protection procedures, (4) identify internal control weaknesses, and (5) apply the fraud triangle. Undergraduate and graduate students from two universities performed well on the case.

Determinants of asset misappropriation at the workplace: the moderating role of perceived strength of internal controls

2020 ◽  
Vol 27 (4) ◽  
pp. 1191-1211
Author(s):  
Theodora Aba Abekah Koomson ◽  
Godfred Matthew Yaw Owusu ◽  
Rita Amoah Bekoe ◽  
Maureen Oquaye
Keyword(s):  
Internal Control ◽  
Structural Model ◽  
Model Analysis ◽  
Internal Controls ◽  
Partial Least Square ◽  
Recent Theory ◽  
Research Attention ◽  
Content Type ◽  
Asset Misappropriation

Purpose This paper aims to investigate the prevalence of asset misappropriation at the workplace and examines the dominant factors that influence individuals to misappropriate assets at the workplace. Relying on the most recent theory on fraud (the stimulus/pressure, capability, opportunity, rationalization and ego (S.C.O.R.E. model) as the theoretical basis, the study examines the effect of pressure, rationalization, capability, opportunity/strength of internal control system and ego on asset misappropriation at the workplace while controlling for the effect of ethical values. Design/methodology/approach A total of 883 valid responses from individuals working in various organizations in Ghana were collected by means of a self-administered questionnaire. The hypothesized relationships of the study were tested by means of a structural model analysis using the partial least square based structural equation modelling technique. Findings Results from the structural model analysis demonstrate that individuals misappropriate assets at their workplace due to pressures they face, their ability to rationalize their actions as not wrong, their capabilities and their egos. The results, however, indicate that the extent to which an individual will misappropriate asset depends, to a large extent, on the person’s perception of the strength of internal control mechanisms at the workplace. The findings of the study make significant contributions to the fraud discourse. Originality/value Theoretically, the study is among the first to provide empirical support for the applicability of the S.C.O.R.E. model in the fraud literature. Again, this study extends knowledge on occupational fraud literature by examining an area that has received the least research attention: asset misappropriation. The study also highlights the important role of internal controls in reducing the occurrence of asset misappropriation at the workplace.

Impact of the Locus of Causality and Internal Control on the Social Utility of Causal Explanations

2010 ◽  
Vol 69 (3) ◽  
pp. 173-179 ◽  
Author(s):  
Samantha Perrin ◽  
Benoît Testé
Keyword(s):  
Internal Control ◽  
Three Dimensions ◽  
Social Utility ◽  
External Control ◽  
Job Interview ◽  
Locus Of Causality ◽  
Causal Explanations ◽  
Professional Success ◽  
The Social ◽  
Different Types

Research into the norm of internality ( Beauvois & Dubois, 1988 ) has shown that the expression of internal causal explanations is socially valued in social judgment. However, the value attributed to different types of internal explanations (e.g., efforts vs. traits) is far from homogeneous. This study used the Weiner (1979 ) tridimensional model to clarify the factors explaining the social utility attached to internal versus external explanations. Three dimensions were manipulated: locus of causality, controllability, and stability. Participants (N = 180 students) read the explanations expressed by appliants during a job interview. They then described the applicants on the French version of the revised causal dimension scale and rated their future professional success. Results indicated that internal-controllable explanations were the most valued. In addition, perceived internal and external control of explanations were significant predictors of judgments.

Pengaruh Kualitas Sumber Daya Manusia, Pemanfaatan Teknologi Informasi, Dan Sistem Pengendalian Intern Terhadap Ketepatwaktuan Pelaporan Keuangan Pemerintah Desa

2018 ◽  
Vol 26 (2) ◽  
pp. 131-143
Author(s):  
Marlinawati Marlinawati ◽  
Dewi Kusuma Wardani
Keyword(s):  
Information Technology ◽  
Control System ◽  
Human Resources ◽  
Financial Reporting ◽  
Internal Control ◽  
Positive Influence ◽  
Internal Control System ◽  
Speed Up ◽  
Village Government

The purpose of this research is to know the influence between the Quality of Human Resources, Utilization of Information Technology and Internal Control System Against Timeliness of Village Government Financial Reporting at Gunungkidul Regency. This research is causative research. The population is the village government in Gunungkidul Regency, especially in Gedangsari subdistrict. Criteria of respondents in the study were to village and village apparatus. We use questionnaire to collect data. We use multiple regression with SPSS program version 16.0 to analyze data. We find that quality of human resources and internal control system have a positive influence on the timeliness of village government financial reporting. On the other hand, utilization of information technology does not influence the timeliness of village government financial reporting. These imply that the quality of human resources and internal control system can speed up the preparation of village government financial reporting.

IMPLEMENTASI SISTEM PENGENDALIAN INTERNAL PADA PERUSAHAAN JASA

2019 ◽  
Vol 2 (2) ◽  
pp. 110
Author(s):  
Wahyu Wahyu Wahyu ◽  
Marliyati Marliyati Marliyati ◽  
I. Nyoman Romangsi
Keyword(s):  
Risk Assessment ◽  
Operating Procedure ◽  
Internal Control ◽  
Standard Operating Procedure ◽  
Control Environment ◽  
Service Company ◽  
Standard Operating ◽  
Information And Communication

The aim of this article is to analyze internal control in service company. The analyze used the components of internal control according to COSO: control environment, risk assessment, control activities, information and communication, monitoring. Analysis of internal control used the data obtained through observation, questionnaires, interview, and documentary. Based on this analysis results can be concluded, that the dual positions refer with company SOP (Standard Operating Procedure). Separation of task does not work because that the dual positions. Therefore, the component of control activities applied at company is not in accordance with the component of control activities according to COSO. Nonconformity components still results in very effective internal control because the purpose of the internal control still remains to be achieved even though there are components that are not in accordance with the internal control components according to COSO.

The Severity of Internal Controls over Financial Reporting Deficiencies: Differences among Types and Industries

2014 ◽  
pp. 55-77
Author(s):  
Tatiana Mazza ◽  
Stefano Azzali
Keyword(s):  
Information Technology ◽  
Financial Reporting ◽  
Internal Control ◽  
Service Industry ◽  
Listed Companies ◽  
Internal Controls ◽  
Service Companies ◽  
Finance Industry ◽  
Material Weaknesses ◽  
Fixed Assets

This study analyzes the severity of Internal Control over Financial Reporting deficiencies (Deficiencies, Significant Deficiencies and Material Weaknesses) in a sample of Italian listed companies, in the period 2007- 2012. Using proprietary data the severity of the deficiencies is tested for account-specific, entity level and information technology controls and for industries (manufacturing and services vs finance industries). The results on ICD severity is compared with one of the most frequent ICD (Acc_Period End/Accounting Policies): for account-specific, ICD in revenues, purchase, fixed assets and intangible, loans and insurance are more severe while ICD in Inventory are less severe. Differences in ICD severity have been found in the characteristic account: ICD in loan and insurance for finance industry and ICD in revenue, purchase for manufacturing and service industry are more severe. Finally, we found that ICD in entity level and information technology controls are less severe than account specific ICD in all industries. However, the results on entity level and information technology deficiencies could also mean that the importance of these types of control are under-evaluated by the manufacturing and service companies.

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