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Effectiveness Of Monitoring Mechanisms And Mitigation Of Fraud Incidents In The Public Sector

Author

Listed:
  • Kamaliah KAMALIAH

    (Faculty of Economics; Universitas Riau; Indonesia)

  • Noor-Syazana MARJUNI

    (Faculty of Accountancy; UniversitiTeknologi MARA; Malaysia)

  • Norhayati MOHAMED

    (Faculty of Accountancy; UniversitiTeknologi MARA; Malaysia)

  • Zuraidah MOHD-SANUSI

    (Accounting Research Institute & Faculty of Accountancy; UniversitiTeknologi MARA; Malaysia)

  • Rita ANUGERAH

    (Faculty of Economics; Universitas Riau; Indonesia)

Abstract

Fraud in the public sector continues to be the major issue for the governments worldwide. Thus, this study examines the extent of monitoring mechanisms within public systems curbing fraud incidents. The authors’ survey concerned three dimensions of monitoring mechanisms: good governance, internal control procedures and fraud prevention programs. This survey has been conducted among various Malaysian government officers. The results show that, generally, misappropriation of assets is ranked as the most frequent fraudulent case in government agencies. Based on regression analysis, internal procedures or policies were significant in reducing fraud incidents. Additionally, both good governance and fraud prevention programs were proven to have a significant relationship with the occurrences of fraud within government agencies. In terms of the practical aspect, the study provides important information for public servants on the effectiveness and usefulness of good governance, internal control procedures, and fraud prevention program in the public sector. This paper provides an interesting contribution to the understanding of fraud incidents inside government agencies.

Suggested Citation

  • Kamaliah KAMALIAH & Noor-Syazana MARJUNI & Norhayati MOHAMED & Zuraidah MOHD-SANUSI & Rita ANUGERAH, 2018. "Effectiveness Of Monitoring Mechanisms And Mitigation Of Fraud Incidents In The Public Sector," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2018(30), pages 82-95, June.
    • Handle: RePEc:rom:rampas:v:2018:y:2018:i:30:p:82-95
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    References listed on IDEAS

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    1. Mohd Hassan Che Haat & Rashidah Abdul Rahman & Sakthi Mahenthiran, 2008. "Corporate governance, transparency and performance of Malaysian companies," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(8), pages 744-778, September.
    2. Philip Law, 2011. "Corporate governance and no fraud occurrence in organizations: Hong Kong evidence," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(6), pages 501-518, June.
    3. W. Steve Albrecht & Ned C. Hill & Conan C. Albrecht, 2006. "The Ethics Development Model Applied To Declining Ethics in Accounting," Australian Accounting Review, CPA Australia, vol. 16(38), pages 30-40, March.
    4. Thomas Clarke, 2004. "Cycles of Crisis and Regulation: the enduring agency and stewardship problems of corporate governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(2), pages 153-161, April.
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    Cited by:

    1. Mwangi Severinah Wanjiru & James Ndegwa, 2020. "The Influence of Fraud Risk Management on Fraud Occurrence in Kenyan listed Companies," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 147-160, October.

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    More about this item

    Keywords

    fraud incidents; good governance; internal control procedures; fraud prevention programs; monitoring mechanisms.;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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