Prevention and detection of corporate fraud : procedures practiced in Singapore
In view of the growing impact of corporate fraud, this project examines some of the common procedures practised by local business organisations in preventing and detecting fraud. Together with a review of the literature, this report presents the findings from a questionnaire survey which was de...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/62971 |
| _version_ | 1811688058895990784 |
|---|---|
| author | Chan, Grace Ai Mun Ong, Siok Hui Yew, Sook Yin |
| author2 | KB Ambanpola |
| author_facet | KB Ambanpola Chan, Grace Ai Mun Ong, Siok Hui Yew, Sook Yin |
| author_sort | Chan, Grace Ai Mun |
| collection | NTU |
| description | In view of the growing impact of corporate fraud, this
project examines some of the common procedures practised by
local business organisations in preventing and detecting fraud.
Together with a review of the literature, this report
presents the findings from a questionnaire survey which was
designed to elicit information regarding prevention and
detection of fraud from 100 local auditors and accountants.
The questionnaire survey indicated that the most common
type of fraud was committed by employees (76.67%). Management
fraud is, on the other hand, perceived as the most serious
(77.42%), and the most difficult to detect and prevent
{68.97%). There was no single most dominant reason for the
difficulties in fraud detection. However, respondents
considered "Perpetrator's objective is to hide fraud and he is
often familiar with the control procedures", as a more
prevalent factor contributing · to the difficulties in fraud
detection.
The common procedures available for fraud prevention and
detection that were identified in the survey include:
(1) implementing a system of internal control,
{2} establishing an audit committee, (3} setting up an internal audit unit and,
(4} others (eg. fraud auditing, ethical education, etc).
In the area of internal control, ensuring compliance with
section 199(2A} remains a significant issue that invites
further research. Despite the fact that respondents perceived
existing legal requirements, inclusive of section 199(2A}, as
sufficient and effective in combating fraud, the adequacy of
follow-up to ensure compliance with section 199 ( 2A} remains
questionable.
The roles and effectiveness of audit committees and
internal audit units have been examined and our
indicated both these control procedures are
effective in combating fraud.
survey has
moderately
This report rounds up with a discussion on other feasible
measures for prevention of fraud. Conflicting views were
exhibited by the auditors and company accountants who
responded. In particular, prosecution/high penalty has been
rated as the most effective measure among the seven measures
identified.
The battle against corporate fraud remains a continuing
challenge for many corporations in today' s world of ever increasing
sophistication of fraud commission. Indeed, knowing how to prevent and detect fraud is perhaps the most effective
way to avoid the heavy losses. |
| first_indexed | 2024-10-01T05:26:11Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/62971 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T05:26:11Z |
| publishDate | 2015 |
| record_format | dspace |
| spelling | ntu-10356/629712023-05-19T05:44:56Z Prevention and detection of corporate fraud : procedures practiced in Singapore Chan, Grace Ai Mun Ong, Siok Hui Yew, Sook Yin KB Ambanpola Nanyang Business School DRNTU::Business::Operations management In view of the growing impact of corporate fraud, this project examines some of the common procedures practised by local business organisations in preventing and detecting fraud. Together with a review of the literature, this report presents the findings from a questionnaire survey which was designed to elicit information regarding prevention and detection of fraud from 100 local auditors and accountants. The questionnaire survey indicated that the most common type of fraud was committed by employees (76.67%). Management fraud is, on the other hand, perceived as the most serious (77.42%), and the most difficult to detect and prevent {68.97%). There was no single most dominant reason for the difficulties in fraud detection. However, respondents considered "Perpetrator's objective is to hide fraud and he is often familiar with the control procedures", as a more prevalent factor contributing · to the difficulties in fraud detection. The common procedures available for fraud prevention and detection that were identified in the survey include: (1) implementing a system of internal control, {2} establishing an audit committee, (3} setting up an internal audit unit and, (4} others (eg. fraud auditing, ethical education, etc). In the area of internal control, ensuring compliance with section 199(2A} remains a significant issue that invites further research. Despite the fact that respondents perceived existing legal requirements, inclusive of section 199(2A}, as sufficient and effective in combating fraud, the adequacy of follow-up to ensure compliance with section 199 ( 2A} remains questionable. The roles and effectiveness of audit committees and internal audit units have been examined and our indicated both these control procedures are effective in combating fraud. survey has moderately This report rounds up with a discussion on other feasible measures for prevention of fraud. Conflicting views were exhibited by the auditors and company accountants who responded. In particular, prosecution/high penalty has been rated as the most effective measure among the seven measures identified. The battle against corporate fraud remains a continuing challenge for many corporations in today' s world of ever increasing sophistication of fraud commission. Indeed, knowing how to prevent and detect fraud is perhaps the most effective way to avoid the heavy losses. ACCOUNTANCY 2015-05-04T08:18:20Z 2015-05-04T08:18:20Z 1994 1994 Final Year Project (FYP) http://hdl.handle.net/10356/62971 en Nanyang Technological University 89 p. application/pdf |
| spellingShingle | DRNTU::Business::Operations management Chan, Grace Ai Mun Ong, Siok Hui Yew, Sook Yin Prevention and detection of corporate fraud : procedures practiced in Singapore |
| title | Prevention and detection of corporate fraud : procedures practiced in Singapore |
| title_full | Prevention and detection of corporate fraud : procedures practiced in Singapore |
| title_fullStr | Prevention and detection of corporate fraud : procedures practiced in Singapore |
| title_full_unstemmed | Prevention and detection of corporate fraud : procedures practiced in Singapore |
| title_short | Prevention and detection of corporate fraud : procedures practiced in Singapore |
| title_sort | prevention and detection of corporate fraud procedures practiced in singapore |
| topic | DRNTU::Business::Operations management |
| url | http://hdl.handle.net/10356/62971 |
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