THE EFFECT OF EMPLOYEES PERCEPTIONS ON INTERNAL CONTROL SYSTEM MECHANISMS TOWARDS EMPLOYEE FRAUD PREVENTION
MazurinaMohd Ali, Nur FarhanahAyop, Erlane K Ghani, Suhaily Hasnan · Journal of Critical Reviews · 2020
This study aims to examine the effect of employees perceptions on internal control systems concerning employee fraud prevention.This study utilizes the questionnaire survey as the research instrument. Specifically, the questionnaires had been distributed to 100 employees within information technology companies, namely, Dell, HP and IBM in Malaysia. Using multiple regression analysis, the results show that, employees perceptions towards information and communication systems and control activities as internal control mechanisms are significant towards preventing employee fraud.The results show that the other internal control mechanisms, such as control environment, risk assessment and monitoring are not significant to influencing employees perceptions towards employee fraud prevention. The findings of this study imply that the ability of the management to communicate the policies and guidelines to the employees as well as taking appropriate measures to correct any misfeasance within companies could significantly prevent employee fraud.The implication of these findings is for the management to improve their efficiency in performing their tasks especially in terms of communication and analytical skills.