Fraud Prevention and Detection Methods in Russian Small-Scale Enterprises: Perceptions of Managers and Accountants Regarding Their Effectiveness
MILYUTINA, EKATERINA (2013)
2013
Yrityksen taloustiede, laskentatoimi - Accounting and Finance
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Hyväksymispäivämäärä
2013-07-31
Julkaisun pysyvä osoite on
http://urn.fi/urn:nbn:fi:uta-1-24076
http://urn.fi/urn:nbn:fi:uta-1-24076
Tiivistelmä
Previous studies of fraud prevention and detection in Russian business environment have primarily targeted large-scale organizations. Meanwhile, small businesses are particularly vulnerable to deception due to lack of resources that large companies have to elaborate internal control.
The purpose of this research is to identify effective methods to fight asset misappropriation, in particular billing, payroll and expense reimbursement schemes, in Russian small businesses. This is achieved by answering the following research questions: What measures do fraud experts recommend to prevent and detect billing, payroll and expense reimbursement schemes? What measures do Russian small businesses have in place to prevent and detect billing, payroll and expense reimbursement schemes? How do managers and accountants estimate effectiveness of the measures in preventing and detecting billing, payroll and expense reimbursement schemes?
The data used in this study was gathered carrying out an analysis of the content of recent fraud literature and conducting an e-mail survey. A total of 14 small business managers and accountants responded to the questionnaire (response rate 100%). Because of non-random selection of the survey participants, there might be a difference between the results from the current study and the results from the entire population
It was found that managers and accountants in small businesses believe the most effective fraud detection procedures are comparing purchase order with invoice and with shipping documents and confirming data with vendors/customers. They rate having restricted access to business records in organization as the most effective fraud prevention measure, while fraud detection training is viewed as the least effective measure.
Keywords: Fraud, Prevention, Detection, Effectiveness, Usage, Small Businesses
The purpose of this research is to identify effective methods to fight asset misappropriation, in particular billing, payroll and expense reimbursement schemes, in Russian small businesses. This is achieved by answering the following research questions: What measures do fraud experts recommend to prevent and detect billing, payroll and expense reimbursement schemes? What measures do Russian small businesses have in place to prevent and detect billing, payroll and expense reimbursement schemes? How do managers and accountants estimate effectiveness of the measures in preventing and detecting billing, payroll and expense reimbursement schemes?
The data used in this study was gathered carrying out an analysis of the content of recent fraud literature and conducting an e-mail survey. A total of 14 small business managers and accountants responded to the questionnaire (response rate 100%). Because of non-random selection of the survey participants, there might be a difference between the results from the current study and the results from the entire population
It was found that managers and accountants in small businesses believe the most effective fraud detection procedures are comparing purchase order with invoice and with shipping documents and confirming data with vendors/customers. They rate having restricted access to business records in organization as the most effective fraud prevention measure, while fraud detection training is viewed as the least effective measure.
Keywords: Fraud, Prevention, Detection, Effectiveness, Usage, Small Businesses