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Occupational Fraud Risk, Internal Control Initiatives and the Sustainability of Small, Medium and Micro Enterprises in a Developing Country: a Literature Review

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  • Ashwin Petersen

    (Cape Peninsula University of Technology)

  • Juan-Pierré Bruwer

    (Cape Peninsula University of Technology)

  • Suzaan Le Roux

    (Cape Peninsula University of Technology)

Abstract

Prior research supports the view that South African Small, Medium and Micro Enterprises (SMMEs) add significant socio-economic value to the national economy. Unfortunately, these business entities’ sustainability leaves much to be desired as they are reported to be among the worst in the world - an estimated 80% of South African SMMEs fail after being in existence for only three years. Although the sustainability of these business entities is believed to be adversely affected by an array of risks which realise (stemming from a harsh economic environment), it is imperative that South African SMMEs make use of sound internal control initiatives to mitigate such risks. According to scholarly literature, it appears that South African SMMEs make use of customised internal control initiatives which are often viewed as inadequate and/or ineffective which, in turn, do not properly mitigate risks. This may result in the sustainability of these business entities to be adversely affected. In order to shed light on the preceding phenomenon, for this study, a literature review was conducted to investigate the theoretical relationship that exists among internal control initiatives, occupational fraud risk, and SMME sustainability, in a South African context.

Suggested Citation

  • Ashwin Petersen & Juan-Pierré Bruwer & Suzaan Le Roux, 2018. "Occupational Fraud Risk, Internal Control Initiatives and the Sustainability of Small, Medium and Micro Enterprises in a Developing Country: a Literature Review," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(4), pages 567-580, AUGUST.
  • Handle: RePEc:dug:actaec:y:2018:i:4:p:567-580
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    References listed on IDEAS

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    1. Rasha Kassem, 2014. "Detecting asset misappropriation: a framework for external auditors," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 10(1), pages 1-42.
    2. Schmitt-Grohe, Stephanie & Uribe, Martin, 2001. "Stabilization Policy and the Costs of Dollarization," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 482-509, May.
    3. Samantha PRINSLOO & Candice WALKER & Lise BOTHA & Juan-Pierre BRUWER & Yolandé SMIT, 2015. "The Influence of Combined Assurance Initiatives on the Efficiency of Risk Management in Retail Small and Very Small Enterprises in Bellville, South Africa," Expert Journal of Business and Management, Sprint Investify, vol. 3(2), pages 63-81.
    4. Guilhoto, Joaquim José Martins & Marjotta-Maistro, Marta C. & Hewings, Geoffrey J. D., 2002. "Economic landscapes, what are they? An application to the Brazilian economy and to sugar cane complex," MPRA Paper 54229, University Library of Munich, Germany.
    5. Joaquim J. M. Guilhoto & Marta C. Marjotta-Maistro & Geoffrey J. D. Hewings, 2002. "Economic Landscapes: An Application to the Brazilian Economy and to the Sugar Cane Complex," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 6, pages 99-118, Springer.
    6. Juan-Pierré BRUWER & Luyolo SIWANGAZA & Yolandé SMIT, 2018. "Loss Control and Loss Control Strategies in SMMEs Operating in a Developing Country: A Literature Review," Expert Journal of Business and Management, Sprint Investify, vol. 6(1), pages 1-11.
    7. Irma Booyens, 2011. "Are small, medium- and micro-sized enterprises engines of innovation? The reality in South Africa," Science and Public Policy, Oxford University Press, vol. 38(1), pages 67-78, February.
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    Cited by:

    1. Urim-Tummim Shipanga & Suzaan Le Roux & Jobo Dubihlela, 2022. ". Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 4(4), pages 126-139, December.
    2. Juan-Pierré BRUWER & Mariaan LOMBARD & Yolandé SMIT & Ankit KATRODIA, 2019. "The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise," Expert Journal of Business and Management, Sprint Investify, vol. 7(1), pages 100-106.

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