An Analysis of Fraud Prevention and Detection in Not-for-Profit Organizations in the State of South Carolina
Mary Gibson · Digital Commons (Liberty University) · 2018
This study analyzed fraud detection and prevention techniques and analyzed if there was a relationship between the techniques and the detection of fraud. The combined techniques were fraud risk assessment, fraud risk register, code of conduct, fraud assessment training, whistle-blower policy, fraud control plan, fraud control policy, and internal control review. Nonprofits are vulnerable to fraud and costly for the organizations that rely heavily on donations to provide needed services or goods to a community. Through analyzing 109 nonprofits surveyed in South Carolina, the researcher found 59 reported fraud occurrences and 86 percent were using fraud detection and prevention techniques. This study showed statistical significance in the relationships between fraud prevention and detection techniques used in nonprofits and the detection of fraud. In this study, the results indicated the NFPOs in South Carolina had fraud detected and used the techniques which demonstrated a level of understanding prevention and detection techniques. This study helps internal stakeholders understand the theories and aspects of fraud to bring awareness to help prevent or detect fraud quicker.