University of Twente Student Theses
Prevention of Dutch fraud cases : a multiple case study on the effectiveness of internal control in the process of financial statement fraud prevention.
Nijenhuis, R.G. (2016) Prevention of Dutch fraud cases : a multiple case study on the effectiveness of internal control in the process of financial statement fraud prevention.
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| Abstract: | This research project examines why internal controls in Dutch financial statement fraud cases were unable to prevent such fraudulent events from happening. Performing a multiple case study on Dutch fraud cases pointed out two important findings. First, the applicability of the Fraud Triangle and other fraud theories to the cases of Dutch fraud analyzed during this study. Second, it was found that management override is one of the main reasons as to why internal controls are insufficient. Internal controls are sufficiently able to prevent low levels of employment from committing fraud. However, an increase of the level of employment causes a decrease in the effectiveness of internal controls. This research recommends that next to internal controls, organizations should focus on creating an environment in which it becomes impossible for employees to rationalize fraudulent behavior. To make sure internal controls are effective the right ethical culture should be implied. The right ethical culture prevents management override, which was found to be the greatest weakness of internal controls in this study. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics, 85 business administration, organizational science, 86 law |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/69819 |
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