Universal Journal of Accounting and Finance Vol. 9(4), pp. 764 - 772
DOI: 10.13189/ujaf.2021.090422
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Internal Auditors' Perception on the Efficacy of Fraud Prevention and Detection in the Public Sector


Farah Liyana Abdul Aziz 1, Intan Waheedah Othman 2,*
1 Audit National Department, Putrajaya, Malaysia
2 Faculty of Accountancy, Universiti Teknologi MARA, Selangor Branch, Malaysia

ABSTRACT

Fraud has become a worldwide issue, impacting a massive number of organizations throughout the globe. The PwC's Global Economic Crime and Fraud Survey 2020 highlighted not only has fraud surged in the private sector, but it has also impacted the public sector causing entities to incur significant financial losses. Motivated by this phenomenon, this study aims to investigate whether fraud awareness, fraud prevention and detection strategies and anti-fraud technology are significantly related to the public auditors' perceptions of the efficacy of fraud prevention and detection in the public sector. Data was collected through questionnaires, distributed to 180 respondents of public auditors in the Malaysian ministries. 133 usable responses were obtained, generating an effective response rate of 74%. Based on the underpinning fraud triangle theory, the research discovers that fraud awareness, and fraud prevention and detection strategies are positively related to the perceived efficacy of fraud prevention and detection. This study differs from prior studies that primarily examined the prevention and detection of fraud in the private sector, by expanding the scope to include the public sector. Determining whether fraud prevention and detection strategies exist and are properly implemented in the public sector is critical since government bodies continue to be vulnerable to irresponsible people misusing public funds. The research findings offer important insights on the level of fraud awareness among practitioners and the determination of fraud prevention and detection mechanisms and technologies that are perceived to be most effective in public organizations.

KEYWORDS
Fraud, Detection Strategy, Prevention Strategy, Anti-fraud Technology, Perception, Efficacy, Auditor, Public Sector, Malaysia

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Farah Liyana Abdul Aziz , Intan Waheedah Othman , "Internal Auditors' Perception on the Efficacy of Fraud Prevention and Detection in the Public Sector," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 764 - 772, 2021. DOI: 10.13189/ujaf.2021.090422.

(b). APA Format:
Farah Liyana Abdul Aziz , Intan Waheedah Othman (2021). Internal Auditors' Perception on the Efficacy of Fraud Prevention and Detection in the Public Sector. Universal Journal of Accounting and Finance, 9(4), 764 - 772. DOI: 10.13189/ujaf.2021.090422.