scholarly journals Deliberation of Fraud Triangle Theory: A Comparison among Public and Private Commercial Banks of Sindh, Pakistan

2020 ◽  
Vol V (I) ◽  
pp. 336-348
Author(s):  
Vivek Anand ◽  
Muhammad Qasim Nizamani ◽  
Farheen Qasim Nizamani
Keyword(s):  
Internal Control ◽  
Commercial Banks ◽  
Primary Source ◽  
Fraud Triangle ◽  
Public And Private ◽  
Financial Pressure ◽  
Private And Public ◽  
Triangle Theory ◽  
Public Banks ◽  
Public And Private Sector

The research has been conducted to apply the most fundamental concept of fraud triangle theory, introduced by Donald Cressey's in 1950-53, to private and public commercial banks of Sindh, Pakistan. According to this theory, Donald Cressey identified that when three-component/factor i-e pressure, opportunity, and rationalization, comes into an individual's life, he is very likely to commit fraud. Eight different hypotheses are drawn for this study to test the elements of the fraud triangle in public and private sector banks. The study adopted a primary source of data collection, with a sample size of 600 distributed to respondents of the two largest bank of Pakistan, i-e, the National Bank of Pakistan and Habib Bank Limited. The statistical Mann-Whitney U-Test applied to test the hypotheses. The results of the study disclosed that the employees in public sector banks in Sindh, facing more financial pressure, the internal control of public banks is also week; hence fraudsters find more opportunities to commit fraud and the employees working in public banks also behave rationalization for their illicit activities.

scholarly journals Financial Efficacy of Selected Public and Private Sector Banks in India

2013 ◽  
Vol 2 (2) ◽  
pp. 26-31
Author(s):  
S Ayyappan ◽  
M SakthiVadivel
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Public And Private ◽  
The Public ◽  
Financial Variables ◽  
Public Sector Banks ◽  
Number Of Factors ◽  
Private And Public ◽  
Public Banks ◽  
Public And Private Sector

The banks in India have over 67,000 branches located across the country. All these are classified into two major categories, nonscheduled banks and scheduled banks. Scheduled banks includes commercial banks and the co-operative banks. The public sector banks are accountable for more than 78 percent of total banking industry in India. Even though private sector banks came later into the market, due to their customer servicing and easy banking features they are also competing equally with already existing public sector banks. so it is very essential to analyze how their financial performance is influenced by number of factors which willfurther suggest them where they need to concentrate more. in this article we have analyzed the correlation between return on total assets and other financial variables of selected private and public banks in India.

scholarly journals Integrating Religiosity into Fraud Triangle Theory: Empirical Findings from Enforcement Officers

2019 ◽  
Author(s):  
Jamaliah Said ◽  
Salsabila Asry ◽  
Marhamah Rafidi ◽  
Rawia Rida Obaid ◽  
Md. Mahmudul Alam
Keyword(s):  
Internal Control ◽  
Local Authority ◽  
Fraud Triangle ◽  
Public Officials ◽  
Huge Amount ◽  
New Model ◽  
Fraud Risk ◽  
Financial Pressure ◽  
Triangle Theory ◽  
Employee Fraud

Recently, employee-fraud has drawn extensive attention due to huge amount of losses of various organizations. This study developed a new model of fraud risk by integrating new elements into a fraud triangle theory. This study simultaneously analyzed religiosity and the three elements of fraud risk factors of employee fraud committed by low and mid-level public officials. The data collected from 120 enforcement officers indicated that religiosity is negatively related to employee fraud. By contrast, all the three elements of fraud triangle theory, namely, pressure, opportunity, and rationalization, are positively related to employee fraud. These results imply that strong religiosity is crucial to mitigate employee fraud. To minimize employee fraud, the opportunity to commit such fraud should be reduced through strong internal control, reduction of negative rationalization, and employee financial pressure. This study contributes to the literature by introducing a new model on employee-fraud occurrence that is not extensively discussed, particularly in the context of local authority in developing countries.

The fraud triangle – an alternative approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paschalis Kagias ◽  
Anastasia Cheliatsidou ◽  
Alexandros Garefalakis ◽  
Jamel Azibi ◽  
Nikolaos Sariannidis
Keyword(s):  
Internal Audit ◽  
Fraud Triangle ◽  
Public And Private ◽  
Content Type ◽  
Corporate Scandals ◽  
Fraud Risk ◽  
Private And Public ◽  
Fraud Theory ◽  
Fraud Risk Management ◽  
Public And Private Sector

Purpose In recent years, Public Accountability and Integrity have been matters of growing attention, both in the public and private sector, as citizens demand value for money entrusted to the governments through their taxes. In addition, in many countries, after the recent recession, government budgets and corporate returns have been reduced. Many corporate scandals have occasionally become known and have had a great impact on confidence in the market. Even worse, after the pandemic of COVID-19, «bare and exacerbated massive preexisting problems in the world’s economic, social and security order, threatens to push up to 100 million people into extreme poverty in 2020, struck at a time of dwindling trust in representative governance» (UNDP, 2020). The funds of organizations in the private and public sector have been shrinking, whereas the situational pressures of fraud are increased. In this context, Dorris, President and CEO of the ACFE warns for explosion of fraud in the coming years and reminds that during the 2008 economic, companies cut-off, non-revenue generating activities, such as the internal audit and the compliance departments leaving them exposed to fraud. Therefore, organizations have to do more with less. The purpose of this paper is to present the development of the fraud theory on the management’s perspective aiming to contribute to the efficient development of anti-fraud mechanisms Design/methodology/approach Having identified the fraud theory developed so far, we provide a framework for the fraud risk management. Findings This paper incorporates cost/benefits considerations, practical considerations and empirical evidence on fraud. Originality/value This paper provides valuable information to enable the management, who has the primary responsibility to prevent and detect fraud, to disclaim responsibility by broadening their understanding of fraud theory.

Internal control and employees’ occupational fraud on expenditure claims

2018 ◽  
Vol 25 (3) ◽  
pp. 891-906 ◽  
Author(s):  
Anuar Nawawi ◽  
Ahmad Saiful Azlin Puteh Salin
Keyword(s):  
Internal Control ◽  
Working Environment ◽  
Fraud Triangle ◽  
Content Type ◽  
Study Approach ◽  
Occupational Fraud ◽  
Financial Pressure ◽  
Culture Influence ◽  
Employees Satisfaction ◽  
Triangle Theory

Purpose The purpose of this study is to investigate the weaknesses of internal control in expenditure claim procedure and to identify the opinions of employees regarding an occupational fraud. This study also attempts to examine the most popular occupational fraud committed by the employee and whether a company’s working environment contributed to the fraud. Design/methodology/approach A case study approach was adopted to investigate and analyse the weaknesses of the internal control and occupational fraud incidents. A mixed method of data collection, specifically, survey questionnaire and document analysis were used. Findings This study found that the internal control of the expenditure claim procedure was weak and needed improvement. This study also found that a strong internal control and a better remuneration paid to the employees could reduce the risk of the occupational fraud committed in the company. In terms of fraud types, this study discovered that claims on mileage, followed by petrol, accommodation and suppliers’ invoice were the most popular occupational frauds committed by the employees. Finally, employee dissatisfaction and poor working-environment culture influence occupational fraud’s level in the organizations. Research limitations/implications The results provide further confirmation of the fraud triangle theory on the causes of fraud, i.e. opportunity because of a weak internal control and financial pressure because of low and non-standardized salary. This study, however, was conducted only on one company. Practical implications This study provides some recommendations to overcome the weak internal control and improve employees’ satisfaction which lead to better working environment. Thus, opportunities for fraud in the company can be reduced. Originality/value This study is original, as it focusses specifically on occupational fraud which is rare in fraud literature, particularly for a study that is conducted in developing markets like Malaysia. It also has examined various related sensitive documents and reports of employee frauds that are generally difficult to be accessed by researchers.

scholarly journals An Analysis Of Business Process Outsourcing Strategies Of Public And Private Sector Banks In India

2011 ◽  
Vol 10 (2) ◽  
Author(s):  
Siva Prasad Ravi ◽  
Ravi Kumar Jain ◽  
Hari P. Sharma
Keyword(s):  
Business Process ◽  
Point Of View ◽  
Business Process Outsourcing ◽  
Public And Private ◽  
Location Service ◽  
Long Run ◽  
Private And Public ◽  
Banking Institutions ◽  
Public Banks ◽  
Public And Private Sector

This paper is a study of the recent trends of Business Process Outsourcing (BPO) strategies and practices among banking institutions in India.  The study attempts to analyze BPOs used by private and public banks using four dimensional descriptive conceptual dimensions of outsourcing:  1) shoring model (vendor location/service creation), 2) sourcing model (vendor type), 3) engagement model (number of vendors engaged), and 4) duration of the engagement (contract period).  The comparison of results reveals similar trends of outsourcing for public and private banks. However, public banks are more regulated, and thus are restricted from outsourcing of certain processes to avoid excessive risks of privacy of data and information related to customers.  From a financial strategic point of view, in the long run, the underlying profit margins of a public bank might have adverse effects.  

Learning Internal Controls from a Fraud Case at Bank of China

2012 ◽  
Vol 27 (4) ◽  
pp. 1171-1192 ◽  
Author(s):  
Huong Ngo Higgins
Keyword(s):  
Internal Control ◽  
Banking Sector ◽  
Business Students ◽  
Internal Controls ◽  
Fraud Triangle ◽  
Bank Of China ◽  
Recent Reform ◽  
Chinese Banks ◽  
Growing Economy ◽  
Triangle Theory

ABSTRACT This case provides an opportunity to discuss principles of internal control, the process by which an entity's board of directors, management, and other personnel provide reasonable assurance that fraud and theft are prevented and detected. The case also facilitates discussion of the unique corporate governance and internal control environments in China, a fast-growing economy. Readers will be asked to apply the fraud triangle theory to identify internal control weaknesses and to design control activities for preventing fraud. The case is intended for beginning auditing students, but is also suitable for a more general audience such as accounting, management, and business students at the M.B.A. or undergraduate level. The case introduces Bank of China (BOC) against the backdrop of China's banking sector. It describes the proliferation of non-performing loans in Chinese banks, the failure to report these loans correctly, and the way in which these conditions create a climate where fraud and theft might be easily hidden. These problems and the need for internal controls become evident in the description of a major fraud scheme at BOC. After relating this scheme, the case concludes by reviewing recent reform initiatives to modernize internal controls in Chinese banks.

scholarly journals Private and Public Sector Employer Actions for Home Office Workers During the COVID-19 Epidemic

2021 ◽  
Vol 4 (1) ◽  
pp. 509-519
Author(s):  
Krzysztof Nowacki ◽  
Sandra Grabowska ◽  
Teresa Lis
Keyword(s):  
Private Sector ◽  
Home Office ◽  
Public And Private ◽  
State Sector ◽  
Private And Public ◽  
Statistical Sample ◽  
Questionnaire Method ◽  
Public And Private Sector ◽  
Sector Employer ◽  
Selection Of

Abstract A research was conducted among the employees referred to work in the home office in connection with the announced state of the epidemic in Poland. The research was conducted using a questionnaire method, the study was attended by 199 respondents. The research is burdened with an error in the selection of statistical sample units, which resulted from the respondents’ involvement and their truthfulness. The aim of the article is to assess the activities of employers from the private and state sectors in Poland, related to the delegation of employees to work in the home office, and to analyze the skills and possibilities of self-organization of work by employees. An important result of the survey was to demonstrate the differences in the behavior of public and private sector employers. The study shows that the private sector has adapted better to sudden changes than the state sector.

Analysis of employee and management fraud in Tanzania

2019 ◽  
Vol 26 (2) ◽  
pp. 412-431
Author(s):  
Omari Zuberi ◽  
Siasa Issa Mzenzi
Keyword(s):  
Public Awareness ◽  
Descriptive Analysis ◽  
Principal Component ◽  
Financial Strain ◽  
Fraud Triangle ◽  
Public And Private ◽  
Content Type ◽  
Motivation Factors ◽  
Management Fraud ◽  
Triangle Theory

Purpose The study aims to explore specific motivations, rationalizations and opportunities that are involved in the occurrences of both employee and management fraud in the context of an emerging African country, Tanzania. It builds and extends from the fraud triangle theory. Design/methodology/approach A survey was developed and administered to 114 participants who had witnessed, had examined or had been involved in fraud resolutions. The participants included fraud examiners, business managers and owners, victims, auditors, lawyers, and law enforcement agents. The data collected were analysed using descriptive analysis, principal component analysis and correlation analysis. Findings The results revealed six motivation factors that incentivize employees and managers to engage in fraudulent behaviours. These are business financial strain, social incentives and pressure, greed, operating problems, internal pressures and malevolent work environment. In addition, fraudsters rationalized their behaviour through five significant neutralization techniques identified as social weighting, transferring of blame, denial of injury, attitude and prior fraud history. Lastly, victim organisations were identified to have three main fraud opportunities: poor control environment, inadequate control activities and circumstances that allowed collusive behaviour among fraudsters. Research limitations/implications While the study attempted to explore the motivations, opportunities and rationalizations from the perspectives of the fraud-fighting professionals and witnesses, their views and suggestions might be different from the actual known fraudsters or incarcerated individuals. Practical implications Business organisations, fraud-fighting professionals and general community must understand the factors behind fraud occurrences, so proper measures may be taken to limit the frequency and amount of fraud losses. Social implications Creation of public awareness and dialogue necessary for the prevention, fighting and deterrence against all forms of fraud. Originality/value Despite the occurrences of many scams in both public and private sectors, limited studies exist as to the triggers behind fraud occurrences in the context of the developing countries and whether these triggers are the same as in other contexts. This study is an attempt to fill this gap.

scholarly journals Pengaruh Pengendalian Internal, Budaya Organisasi, dan Moralitas pada Kecenderungan Kecurangan (Fraud) di LPD se-Kabupaten Gianyar

2018 ◽  
pp. 2155
Author(s):  
I Putu Aditya Prastika Eka Putra ◽  
Made Yenni Latrini
Keyword(s):  
Organizational Culture ◽  
Internal Control ◽  
Random Sampling ◽  
Stratified Random Sampling ◽  
Fraud Triangle ◽  
Cultural Organization ◽  
Analysis Technique ◽  
Linear Regression Technique ◽  
Triangle Theory ◽  
Questionnaire Method

This research aimed to determine the effect of internal control, organizational culture, and morality to fraud tendency. The theory used in this research are Fraud Triangle Theory and Agency Theory. The population in this study is the head of LPDs in Gianyar regency. This research using proportionate stratified random sampling. The samples were taken are 73 head of LPDs. The data collectment is done by questionnaire method. The data analysis technique used in this research is multiple linear regression technique. The results of this research showed that internal control, cultural organization and morality have negative affect on fraud tendency in LPDs in Gianyar regency. Keywords:  Internal Control, Organizational Culture, Morality, Fraud Tendency

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