Mitigating corporate financial fraud : a qualitative study
Johnnie R. Bejarano · ProQuest Demo Repository · 2008
Corporate financial fraud in the U.S. is about 556 times more costly ($258 million) than employee fraud ($464 thousand). Financial fraud is deliberate, requires planning, organization, trickery, false representation, and continues to occur despite anti-fraud legislation. This qualitative study explored the perceptions of a purposive sample of 20 accountants, examiners, and investigators in the Denver, Colorado area on how to mitigate corporate financial fraud. Findings revealed that mitigating corporate financial fraud requires improvements to (a) education, (b) training, (c) detection, (d) prevention, and (e) internal controls. A new fraud mitigation model© emerged that integrates differential association theory, agency theory, endogenous and exogenous fraud factors that might help explain and predict the patterns of behavior exhibited by perpetrators of financial fraud.