Tag Archives: Fraud

Corporate Farud: Causes, Effects and Deterence on Financial Institutions in Ghana (Review Completed - Accepted)

The purpose of the study is to find out the causes, effects and deterrence and prevention of corporate fraud in financial institution of Ghana. In particular, we examine the effects of fraud on firm’s financial performance. A cross sectional model was used to find the effects of financial institutions fraud on financial performance. It was revealed that, fraud has a significant negative effects on financial performance i.e. Return on Assets of financial institutions in Ghana. However, structured questionnaires was also used to find out the perception of Accountants, Auditors and management on the main causes of banking fraud and  deterrence and prevention methods in curbing the menace. It was revealed that weaker internal control, inadequate training and fraud policies, failed Documents and proper Remuneration are the strong arsenal that causes fraud in financial institutions of Ghana. Moreover, organizational use of password protection, Good Remuneration, Employees background Checks, adequate fraud training were perceived as the most deterrence and prevention method in fighting fraud in financial institutions. Our results have practical implication for management, accountants, Auditors and all stakeholders in financial institutions on the effects of fraud on firms financial performance and in mounting fool proof methods in curbing this canker and reducing it to bearest minimum. The study contributes deterrence and prevention methods aim at improving it effectiveness in reducing fraud in Ghana and West Africa.

Keywords: Fraud, Ghana, Return on Assets, deterrence and prevention, financial institutions

Dynamic Analysis of Financial Statement Fraud on Profitability of Manufacturing Firms in Nigeria (Published)

The aim of this research study is to assess the impact of financial statement fraud on profitability of selected Nigerian manufacturing firms covering (2002-2016). The specific objectives focused on ascertaining the effect of variables of financial statement fraud on return on assets (ROA). To achieve these objective, descriptive research design was used for the study while secondary data was collected from the financial reports of the selected firms and website of Security and Exchange Commission. The Analysis of Covariance (ANCOVA) was used and STATA II econometric method was adopted in the analysis of the data. Beneish model was adopted in the analysis of the financial reports to create a dummy variable for the selected firms from 2002-2016 and validation of the parameters were ascertained using various statistical techniques such as t-test, co-efficient of determination (R2), F-statistics and Wald chi-square. Three hypotheses were formulated and tested using the t-statistics at 5% level of significance. The findings of the analysis revealed that there is a significant relationship between financial statement fraud and profitability in Nigerian manufacturing industry. It was found that increase in fictitious revenue in manufacturing industry would lead to low profitability. The implication of this is that increase in fictitious revenue would lead to decrease in performance. The study therefore recommended that pragmatic policy options need to be taken in the manufacturing industry to effectively manage fictitious revenue, in order to enhance manufacturing industry performance in the country and also financial statement fraud should be adequately inculcated into the internal control system of manufacturing firms for the effective running of the manufacturing industry in Nigeria.

Keywords: Beneish Model, Fictitious Revenue, Financial Statement, Fraud, Profitability

Parenting Styles as Correlates of Students’ Attitude towards Examination Malpractices in Obio/Akpor Local Government Area of Rivers State: Implications for Counselling (Published)

Parenting styles refers to practices adopted by parents in rearing their children. A good parenting style is needed to develop in a child interpersonal relationship, capacity to take initiatives, self-reliance, motivation and to conform to societal acceptable code of conduct. Bad parenting style is counterproductive and may as well get children involved in antisocial behaviours including examination malpractices. This work is a correlational study intended to determine the relationship between parenting styles and students’ attitude towards examination malpractices. Three research questions and three hypotheses were designed to guide the study. The instruments for data collection were Students’ Attitude to Examination Malpractices Scale and Parenting Style Scale. These instruments were vetted by three experts in Educational Psychology. The reliability coefficient of Attitude to Examination Malpractices Scale measured through test-retest method and Pearson product moment correlation technique was 0.86. The reliability indices of sections of Parenting Style Scale established through Cronbach Alpha technique were 0.68, 0.81, 0.73 and 0.84 for sections A, B, C and D respectively. It was found that though, majority of the students showed negative attitude towards examination malpractices, a sizeable percentage of them showed positive attitude towards the malaise. Authoritative, authoritarian, permissive and neglectful parenting styles had a significant joint relationship with students’ attitude towards examination malpractices. Authoritative, authoritarian and permissive parenting styles each had individual negative relationship with students’ attitude towards examination malpractices while neglectful parenting style had a positive relationship with students’ attitude towards examination malpractices. Based on these findings, it is imperative for the counsellors to assist prospective couples through premarital counselling or marital counselling to adopt good parenting styles especially authoritative parenting style in nurturing their children. Appreciable number of counsellors should be employed by the government of Rivers State and sent to secondary schools to help maladjusted students acquire good value re-orientation that will enable them distinguish what is good from what is bad with a view to avoiding negative tendencies including examination malpractices

Keywords: Authoritarian, Authoritative, Corruption, Examination, Fraud, Test, antisocial behaviour, cheating, malpractices, neglectful parenting styles, permissive

Parenting Styles as Correlates of Students’ Attitude towards Examination Malpractices in Obio/Akpor Local Government Area of Rivers State: Implications for Counselling (Published)

Parenting styles refers to practices adopted by parents in rearing their children. A good parenting style is needed to develop in a child interpersonal relationship, capacity to take initiatives, self-reliance, motivation and to conform to societal acceptable code of conduct. Bad parenting style is counterproductive and may as well get children involved in antisocial behaviours including examination malpractices. This work is a correlational study intended to determine the relationship between parenting styles and students’ attitude towards examination malpractices. Three research questions and three hypotheses were designed to guide the study. The instruments for data collection were Students’ Attitude to Examination Malpractices Scale and Parenting Style Scale. These instruments were vetted by three experts in Educational Psychology. The reliability coefficient of Attitude to Examination Malpractices Scale measured through test-retest method and Pearson product moment correlation technique was 0.86. The reliability indices of sections of Parenting Style Scale established through Cronbach Alpha technique were 0.68, 0.81, 0.73 and 0.84 for sections A, B, C and D respectively. It was found that though, majority of the students showed negative attitude towards examination malpractices, a sizeable percentage of them showed positive attitude towards the malaise. Authoritative, authoritarian, permissive and neglectful parenting styles had a significant joint relationship with students’ attitude towards examination malpractices. Authoritative, authoritarian and permissive parenting styles each had individual negative relationship with students’ attitude towards examination malpractices while neglectful parenting style had a positive relationship with students’ attitude towards examination malpractices. Based on these findings, it is imperative for the counsellors to assist prospective couples through premarital counselling or marital counselling to adopt good parenting styles especially authoritative parenting style in nurturing their children. Appreciable number of counsellors should be employed by the government of Rivers State and sent to secondary schools to help maladjusted students acquire good value re-orientation that will enable them distinguish what is good from what is bad with a view to avoiding negative tendencies including examination malpractices.  

Keywords: Authoritarian, Authoritative, Corruption, Examination, Fraud, Test, antisocial behaviour, cheating, malpractices, neglectful parenting styles, permissive

The Role of External Auditors in Error and Fraud Discovered in the Financial Statements in the Jordanian Public Shareholding Companies (Industrial) (Published)

The Purpose of this study is to identify the role of external auditors in error and fraud discovered in the financial statements in the Public shareholding industrial Companies in Jordan. It is also about recognizing the role of external auditors with the duties assigned to them when auditing financial statements and discovering error and fraud in those statements. The current study also concentrated on the principle of confidentiality whether it should prevent the external auditor from informing the competent authorities about any fraud or error that takes place in the company they are auditing. The researcher chose a random sample of external auditors affiliated to Jordan Association of certified public Accountants, who audited the financial statements of the public shareholding industrial companies in Jordan. The study produced a set of important results and recommendations the most prominent of which was that there is a statistically significant relationship between the prompt reporting by the auditor about the existence of error or fraud cases and the maintenance of privacy towards the establishment they are reviewing its accounts. There is also a statistically significant relationship between uncovering error and fraud in the financial statements of the companies and the responsibility shouldered by the external auditor. The researcher also advises the shareholders to follow up the financial systems of the companies they participate in and to demand for periodical modernization of those systems.

Keywords: Auditors, Error, Financial Statement, Fraud, Jodan, Shareholding Company

Forensic Accounting As a Veritable Tool for Efficient Management of State Owned Public Sectors in Ebonyi State: The Accountants Perspective (Published)

The study was carried out to find out the uses of forensic accounting as well as the basic skills required for the use of forensic accounting in state owned public sectors in Ebonyi state, Nigeria. Two research questions and hypotheses guided the study. The population of the study comprised of One hundred and fifty six Accountants working in the state ministries in Abakaliki urban. A sample size of sixty two (62) accountants was used. Out of sixty two (62) copies of the questionnaire distributed only sixty copies (60) were returned. The study found out the uses as calculation of economic damage, determining the level of bankruptcy or insolvency for an organization, act as a guide in re-organization of organizational financial activities, used to check on security fraud, used for valuation of a business, etc. The basic skills required for the use of forensic accounting in public sectors include: knowledge of preparing financial statements, ability to compute key financial ratios, being informed on the types of audit evidence etc. The researchers conclude that forensic accounting is essential in every organization especially public sectors and recommended that tertiary institutions offering accountancy and accounting education should ensure that forensic accounting is offered not just in the post graduate level but equally at the under graduate level and to curb the incessant cases of corruption in public sectors in Nigeria, forensic accounting must be professionally practiced in all organizations.

Keywords: Accounting, Fraud, and public sector, forensic

THE GHOST WORKER SYNDROME: A COMPLEX DIMENSSION TO PUBLIC SERVICE CORRUPTION IN KOGI STATE – NORTH CENTRAL NIGERIA. (Review Completed - Accepted)

The public sector constitutes the largest sector of the Nigerian economy. It employs the largest population of the labour force and also controls the bulk of the financial resources of the country. What this implies is that whatever adversely affects the public service has a huge multiplier effect on national development. The ghost can be a real person who knowingly or not is placed on the payroll, or a fictitious person invented by the dishonest employee. Thus, this paper attempts an x-ray the menacing ill of ghost workers, by the adoption of some basic accounting procedures to ensure internal control of public funds. This is because the public sector is the most venerable sector to employee frauds. The research findings show that public sector management in Kogi State has not lived up to expectation especially with regards to human resource management, good internal control system and good accounting  procedure to reduce the act of ghost workers, among others. The study recommends the formulation of good human resource and recruitment policy, attractive pay package and internal control/audit department.

Keywords: Corruption, Effectiveness, Efficiency, Fraud, Ghost, Public Sector

WHISTLEBLOWER REWARD AND SYSTEMS IMPLEMENTATION EFFECTS ON WHISTLEBLOWING IN ORGANISATIONS (Published)

Whistleblowing has become a major concern globally following tremendous organisational misconduct that had befallen huge organisations and has ultimately led to the collapse of some organisations, with its trickling down effects translating into global economic meltdown. Several countries have adopted and signed up to whistleblower acts including Ghana as a way of addressing this challenge of corruption and fraud, for which some organisations have implemented whistleblowing systems and provided reward systems to encourage whistleblowing. The study employs fisher’s exact test to analyse the effect of whistleblowing implementation systems in organisations in Ghana and its associated reward systems effects on whistleblowing. It observes that, these have not been as effective as desired, particularly as whistleblowing implemented systems have minimal or no effect and reward systems intended to motivate whistleblowing fails to motivate its essence such that, the presence of these systems have not impacted on organisational productivity

Keywords: Corruption, Fraud, Punitive, Reported Misconduct, Reward systems, Sufficiency of whistleblowing implementation systems, Whistleblower, Whistleblowing

The New Fraud Diamond Model: How Can It Help Forensic Accountants In Fraud Investigation In Nigeria? (Published)

Fraud has been associated with human organisation from recorded history. Investigating and detecting fraud is not an easy task and requires thorough knowledge about the nature of fraud, how it can be committed and concealed. Forensic Accountants are increasingly being asked to play an important role in helping organisations investigate, prevent and detect fraud. This paper aims at broadening Forensic Accountants knowledge about fraud and why it occurs. The paper adopts secondary source of data to explain Wolf and Hermanson fraud theory and shows its relevance, presents the other fraud models and relates them to Wolf and Hermanson’s model, and proposes a “New Fraud Diamond Model’’ that Forensic Accountants could use when assessing the risk of fraud in Nigeria.

Keywords: Forensic Accountants, Fraud, Fraud Detection, Fraud Diamond Model, Fraud Investigation

Whistleblower Reward and Systems Implementation Effects on Whistleblowing in Organisations (Review Completed - Accepted)

Whistleblowing has become a major concern globally following tremendous organisational misconduct that had befallen huge organisations and has ultimately led to the collapse of some organisations, with its trickling down effects translating into global economic meltdown. Several countries have adopted and signed up to whistleblower acts including Ghana as a way of addressing this challenge of corruption and fraud, for which some organisations have implemented whistleblowing systems and provided reward systems to encourage whistleblowing. The study employs fisher’s exact test to analyse the effect of whistleblowing implementation systems in organisations in Ghana and its associated reward systems effects on whistleblowing. It observes that, these have not been as effective as desired, particularly as whistleblowing implemented systems have minimal or no effect and reward systems intended to motivate whistleblowing fails to motivate its essence such that, the presence of these systems have not impacted on organisational productivity.

Keywords: Corruption, Fraud, Punitive, Reported Misconduct, Reward systems, Sufficiency of whistleblowing implementation systems, Whistleblower, Whistleblowing