The Effect of Fraud on Risk Management in Not-For-Profit organizations

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Author(s)
Kummer, Tyge
Singh, Kishore
Best, Peter
Year published
2014
Metadata
Show full item recordAbstract
Not-for-Profit (NFP) organizations have specific organizational characteristics as their objectives are ethically motivated and trust is indispensable. Additionally, NFP organizations are often small sized and do not have the expertise to prevent fraud. As a result, an effective risk management is of substantial importance. We use survey data from NFP organizations in Australia and New Zealand (N = 652) to identify factors that influence fraud prevention strategies. Our findings indicate that organizations that have not experienced fraud rely partially on ineffective prevention measures. The occurrence of fraud seems to ...
View more >Not-for-Profit (NFP) organizations have specific organizational characteristics as their objectives are ethically motivated and trust is indispensable. Additionally, NFP organizations are often small sized and do not have the expertise to prevent fraud. As a result, an effective risk management is of substantial importance. We use survey data from NFP organizations in Australia and New Zealand (N = 652) to identify factors that influence fraud prevention strategies. Our findings indicate that organizations that have not experienced fraud rely partially on ineffective prevention measures. The occurrence of fraud seems to trigger a learning process that leads to a more sophisticated understanding of internal controls and a more suitable risk management. Our results are applicable to support fraud prevention strategies and are highly relevant for practitioners.
View less >
View more >Not-for-Profit (NFP) organizations have specific organizational characteristics as their objectives are ethically motivated and trust is indispensable. Additionally, NFP organizations are often small sized and do not have the expertise to prevent fraud. As a result, an effective risk management is of substantial importance. We use survey data from NFP organizations in Australia and New Zealand (N = 652) to identify factors that influence fraud prevention strategies. Our findings indicate that organizations that have not experienced fraud rely partially on ineffective prevention measures. The occurrence of fraud seems to trigger a learning process that leads to a more sophisticated understanding of internal controls and a more suitable risk management. Our results are applicable to support fraud prevention strategies and are highly relevant for practitioners.
View less >
Journal Title
Corporate Ownership & Control
Volume
12
Issue
1
Copyright Statement
© 2014 VirtusInterpress. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Auditing and Accountability
Accounting, Auditing and Accountability
Banking, Finance and Investment
Business and Management