The perception of accountants/auditors on the role of corporate governance and information technology in fraud detection and prevention
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 29 August 2023
Abstract
Purpose
This paper aims to investigate the perceptions of financial accountants and both internal and external auditors regarding the impact of corporate governance (CG) and information technology (IT) on the detection and prevention of fraud within organizations.
Design/methodology/approach
Primary data were collected from 250 financial accountants, internal auditors and external auditors through questionnaires. The non-probability snowball sampling technique was used for data collection, with the sample t-test, one-way ANOVA and paired sample t-test applied for analysis.
Findings
The results indicate that robust CG practices and IT techniques significantly aid in detecting and reducing fraudulent activities by minimizing opportunities, rationalizations, pressures and capabilities of potential employees to commit fraud. Internal controls also play a significant role in reducing instances of fraud. Notably, ethical officers and ethical training were not perceived as significantly effective in preventing and detecting fraud, leading to a perception that fraudulent practices are prevalent and increasing the risk of future fraudulent activities.
Research limitations/implications
This study recommends the adoption of strong CG practices to identify potential fraud within an organization. Moreover, IT techniques should be tailored to specific needs for effective utilization. Furthermore, the government should increase awareness regarding data provision by departments, organizations and other related personnel. Future research could use secondary data from various regions to expand the literature in this field.
Originality/value
This research uniquely combines three significant factors: CG, IT and forensic accounting in fraud detection and prevention. It contributes to the enhancement of literature about fraud and its preventive and detective measures. The results of this study set the seed for future research, government policymaking and enhanced organizational practices.
Keywords
Acknowledgements
The authors are grateful to the guest editor and two anonymous referees for detailed comments on the original version of this paper.
Funding: The authors did not receive support from any organization for the submitted work.
Since acceptance of this article, the following author has updated their affiliation: Syed Waleed Ul Hassan is at the School of Management, Zhengzhou University, China.
Citation
Hassan, S.W.U., Kiran, S., Gul, S., Khatatbeh, I.N. and Zainab, B. (2023), "The perception of accountants/auditors on the role of corporate governance and information technology in fraud detection and prevention", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-05-2023-0235
Publisher
:Emerald Publishing Limited
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