Breaking Through the Wall of Occupational Fraud: A Systematic Literature Review
A Systematic Literature Review
Abstract
Occupational fraud is a significant threat to the integrity and sustainability of an organization. This study presents a systematic literature review on occupational fraud. This research uses the Scopus database without any year restrictions. Thirty-five articles were identified for further analysis. Our findings highlight a deep understanding of the motivations and driving factors behind fraudulent behavior, as well as the need for a holistic approach to managing occupational fraud. This research provides valuable insights for practitioners, researchers, and policymakers in their efforts to overcome the challenges organizations face in preventing and detecting occupational fraud. This research enriches the literature review on occupational fraud, which is still difficult to find.Kata Kunci: Literature Review, Occupational Fraud, Fraud
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References
Abd Rahim, ShazaNadhira, Rina Fadhilah Ismail, &; Roshayani Arshad. (2021). Internal Control Mechanisms and Perceived Occupational Fraud: Evidence of Malaysian Companies. Academy of Strategic Management Journal, 20(6), 1–12.
ACFE. (2024). Occupational Fraud 2024: A Report to the Nations. Association of Certified Fraud Examiners, Inc.
Andon, P., Free, C., &; Scard, B. (2015). Pathways to accountant fraud: Australian evidence and analysis. Accounting Research Journal, 28(1), 10–44. https://doi.org/10.1108/ARJ-06-2014-0058
Bonny, P., Goode, S., &; Lacey, D. (2015). Revisiting employee fraud: Gender, investigation outcomes and offender motivation. Journal of Financial Crime, 22(4), 447–467. https://doi.org/10.1108/JFC-04-2014-0018
Flasher, R., Shirley, S., &; Higgins, J. P. (2022). The Structure of State Auditor Functions in the Fight Against Corruption. Current Issues in Auditing, 16(1), A18–A26. https://doi.org/10.2308/CIIA-2020-044
Hollow, M. (2014). Money, morals and motives: An exploratory study into why bank managers and employees commit fraud at work. Journal of Financial Crime, 21(2), 174–190. https://doi.org/10.1108/JFC-02-2013-0010
Holtfreter, K. (2005a). Fraud in US organisations: an examination of control mechanisms. Journal of Financial Crime, 12(1), 88–95. https://doi.org/10.1108/13590790510625070
Holtfreter, K. (2005b). Is occupational fraud "typical" white-collar crime? A comparison of individual and organizational characteristics. Journal of Criminal Justice, 33(4), 353–365. https://doi.org/10.1016/j.jcrimjus.2005.04.005
Holtfreter, K. (2008). Determinants of fraud losses in nonprofit organizations. Nonprofit Management and Leadership, 19(1), 45–63. https://doi.org/10.1002/nml.204
Indah Bayunitri, B., &; Christinawati, A. (2019). The Influence of Internal Auditor Skills on Fraud Detection (Survey at Pt. Bank Mandiri Soekarno-Hatta Bandung Branch, Bandung, Indonesia). In International Journal of Innovation, Creativity and Change. www.ijicc.net (Vol. 6). www.ijicc.net
Kalovya, O. Z. (2023). Determinants of occupational fraud losses: offenders, victims and insights from fraud theory. Journal of Financial Crime, 30(2), 361–376. https://doi.org/10.1108/JFC-10-2019-0136
Kassem, R. (2014). Detecting asset misappropriation: a framework for external auditors. In Int. J. Accounting, Auditing and Performance Evaluation (Vol. 10, Issue 1).
Kassem, R. (2024). Spotlight on fraud risk in hospitality, a systematic literature review. International Journal of Hospitality Management, 116. https://doi.org/10.1016/j.ijhm.2023.103630
Kihl, L. A., Misener, K. E., Cuskelly, G., &; Wicker, P. (2021). Tip of the Iceberg? An International Investigation of Fraud in Community Sport. Sport Management Review, 24(1), 24–45. https://doi.org/10.1016/j.smr.2020.06.001
Koomson, T. A. A., Owusu, G. M. Y., Bekoe, R. A., &; Oquaye, M. (2020). Determinants of asset misappropriation at the workplace: the moderating role of perceived strength of internal controls. Journal of Financial Crime, 27(4), 1191–1211. https://doi.org/10.1108/JFC-04-2020-0067
Kumar, K., Bhattacharya, S., &; Hicks, R. (2018). Employee perceptions of organization culture with respect to fraud – where to look and what to look for. Pacific Accounting Review, 30(2), 187–198. https://doi.org/10.1108/PAR-05-2017-0033
Kuo, C., &; Tsang, S. S. (2023). Detection of price manipulation fraud through rational choice theory: evidence for the retail industry in Taiwan. Security Journal, 36(4), 712–731. https://doi.org/10.1057/s41284-022-00360-3
Lenz, P. J., & Graycar, A. (2016). Stealing from the boss: Who is looking? Journal of Financial Crime, 23(3), 613–623. https://doi.org/10.1108/JFC-09-2015-0053
MacAilao, M. C. (2020a). Raising the red flags: The concept and indicators of occupational fraud. Journal of Critical Reviews, 7(11), 26–29. https://doi.org/10.31838/jcr.07.11.06
MacAilao, M. C. (2020b). The internal auditors beyond auditing norms. Journal of Critical Reviews, 7(11), 67–70. https://doi.org/10.31838/jcr.07.11.10
Mangala, D., &; Soni, L. (2023). A systematic literature review on frauds in banking sector. In Journal of Financial Crime (Vol. 30, Issue 1, pp. 285–301). Emerald Publishing. https://doi.org/10.1108/JFC-12-2021-0263
Maulidi, A. (2020). Storytelling of bureaucratic white-collar crimes in Indonesia: is it a matter of reciprocal norm? Journal of Financial Crime, 27(2), 573–586. https://doi.org/10.1108/JFC-07-2019-0087
Maulidi, A., &; Ansell, J. (2020). Tackling practical issues in fraud control: a practice-based study. Journal of Financial Crime, 28(2), 493–512. https://doi.org/10.1108/JFC-07-2020-0150
Nawawi, A., &; Salin, A. S. A. P. (2018). Internal control and employees' occupational fraud on expenditure claims. Journal of Financial Crime, 25(3), 891–906. https://doi.org/10.1108/JFC-07-2017-0067
Nee, C., Button, M., Shepherd, D., Blackbourn, D., &; Leal, S. (2019). The psychology of the corrupt: some preliminary findings. Journal of Financial Crime, 26(2), 488–495. https://doi.org/10.1108/JFC-03-2018-0032
N'Guilla Sow, A., Basiruddin, R., Mohammad, J., &; Abdul Rasid, S. Z. (2018). Fraud prevention in Malaysian small and medium enterprises (SMEs). Journal of Financial Crime, 25(2), 499–517. https://doi.org/10.1108/JFC-05-2017-0049
Nigrini, M. J. (2019). The patterns of the numbers used in occupational fraud schemes. Managerial Auditing Journal, 34(5), 602–622. https://doi.org/10.1108/MAJ-11-2017-1717
Omair, B., &; Alturki, A. (2020). Multi-Dimensional Fraud Detection Metrics in Business Processes and their Application. In IJACSA) International Journal of Advanced Computer Science and Applications (Vol. 11, Issue 9). www.ijacsa.thesai.org
Peltier-Rivest, D. (2009). An analysis of the victims of occupational fraud: a Canadian perspective. Journal of Financial Crime, 16(1), 60–66. https://doi.org/10.1108/13590790910924966
Peltier-Rivest, D., & Lanoue, N. (2011). Thieves from within: Occupational fraud in Canada. Journal of Financial Crime, 19(1), 54–64. https://doi.org/10.1108/13590791211190722
Peltier-Rivest, D., &; Lanoue, N. (2015). Cutting fraud losses in Canadian organizations. Journal of Financial Crime, 22(3), 295–304. https://doi.org/10.1108/JFC-11-2013-0064
Ratmono, D., & Frendy. (2022). Examining the fraud diamond theory through ethical culture variables: A study of regional development banks in Indonesia. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2117161
Said, J., Alam, M. M., Karim, Z. A., &; Johari, R. J. (2018). Integrating religiosity into fraud triangle theory: findings on Malaysian police officers. Journal of Criminological Research, Policy and Practice, 4(2), 111–123. https://doi.org/10.1108/JCRPP-09-2017-0027
Shepherd, D., Beatty, E., Button, M., &; Blackbourn, D. (2020). The media, personal digital criminal legacies and the experience of offenders convicted of occupational fraud and corruption. Journal of Criminological Research, Policy and Practice, 6(1), 3–16. https://doi.org/10.1108/JCRPP-05-2019-0033
Shepherd, D., &; Button, M. (2019). Organizational Inhibitions to Addressing Occupational Fraud: A Theory of Differential Rationalization. Deviant Behavior, 40(8), 971–991. https://doi.org/10.1080/01639625.2018.1453009
Suh, J. B., Nicolaides, R., & Trafford, R. (2019). The effects of reducing opportunity and fraud risk factors on the occurrence of occupational fraud in financial institutions. International Journal of Law, Crime and Justice, 56, 79–88. https://doi.org/10.1016/j.ijlcj.2019.01.002
Suh, J. B., Shim, H. S., &; Button, M. (2018). Exploring the impact of organizational investment on occupational fraud: Mediating effects of ethical culture and monitoring control. International Journal of Law, Crime and Justice, 53, 46–55. https://doi.org/10.1016/j.ijlcj.2018.02.003
Talib, S. A., Hasnan, S., Hussain, A. R. M., Ali, M. M., &; Ismail, R. F. (2024). Determinants of asset misappropriation in small and medium enterprises: Evidence from Malaysia. Journal of Management World, 2024(1), 1–12. https://doi.org/10.53935/jomw.v2024i1.269
Tranfield, D., Denyer, D., &; Smart, P. (2003). Towards a Methodology for Developing Evidence-Informed Management Knowledge by Means of Systematic Review. British Journal of Management, 14(3), 207–222.
Yang, M., & Chen, Y. (2023). Cognitive rationalization in occupational fraud: structure exploration and scale development. Frontiers in Psychology, 14. https://doi.org/10.3389/fpsyg.2023.1112127
Yekini, K., Ohalehi, P., Oguchi, I., &; Abiola, J. (2018). Workplace fraud and theft in SMEs: Evidence from the mobile telephone sector in Nigeria m e Workplace theft in SMEs: Evidence from the mobile telephone sector in Nigeria. Journal of Financial Crime, 25(4), 969–983.
Zakaria, K. M., Nawawi, A., &; Puteh Salin, A. S. A. (2016). Internal controls and fraud-empirical evidence from oil and gas company. Journal of Financial Crime, 23(4), 1154–1168. https://doi.org/10.1108/JFC-04-2016-0021
Zyglidopoulos, S. C., &; Fleming, P. J. (2008). Ethical distance in corrupt firms: How do innocent bystanders become guilty perpetrators? Journal of Business Ethics, 78(1–2), 265–274. https://doi.org/10.1007/s10551-007-9378-4
ACFE. (2024). Occupational Fraud 2024: A Report to the Nations. Association of Certified Fraud Examiners, Inc.
Andon, P., Free, C., &; Scard, B. (2015). Pathways to accountant fraud: Australian evidence and analysis. Accounting Research Journal, 28(1), 10–44. https://doi.org/10.1108/ARJ-06-2014-0058
Bonny, P., Goode, S., &; Lacey, D. (2015). Revisiting employee fraud: Gender, investigation outcomes and offender motivation. Journal of Financial Crime, 22(4), 447–467. https://doi.org/10.1108/JFC-04-2014-0018
Flasher, R., Shirley, S., &; Higgins, J. P. (2022). The Structure of State Auditor Functions in the Fight Against Corruption. Current Issues in Auditing, 16(1), A18–A26. https://doi.org/10.2308/CIIA-2020-044
Hollow, M. (2014). Money, morals and motives: An exploratory study into why bank managers and employees commit fraud at work. Journal of Financial Crime, 21(2), 174–190. https://doi.org/10.1108/JFC-02-2013-0010
Holtfreter, K. (2005a). Fraud in US organisations: an examination of control mechanisms. Journal of Financial Crime, 12(1), 88–95. https://doi.org/10.1108/13590790510625070
Holtfreter, K. (2005b). Is occupational fraud "typical" white-collar crime? A comparison of individual and organizational characteristics. Journal of Criminal Justice, 33(4), 353–365. https://doi.org/10.1016/j.jcrimjus.2005.04.005
Holtfreter, K. (2008). Determinants of fraud losses in nonprofit organizations. Nonprofit Management and Leadership, 19(1), 45–63. https://doi.org/10.1002/nml.204
Indah Bayunitri, B., &; Christinawati, A. (2019). The Influence of Internal Auditor Skills on Fraud Detection (Survey at Pt. Bank Mandiri Soekarno-Hatta Bandung Branch, Bandung, Indonesia). In International Journal of Innovation, Creativity and Change. www.ijicc.net (Vol. 6). www.ijicc.net
Kalovya, O. Z. (2023). Determinants of occupational fraud losses: offenders, victims and insights from fraud theory. Journal of Financial Crime, 30(2), 361–376. https://doi.org/10.1108/JFC-10-2019-0136
Kassem, R. (2014). Detecting asset misappropriation: a framework for external auditors. In Int. J. Accounting, Auditing and Performance Evaluation (Vol. 10, Issue 1).
Kassem, R. (2024). Spotlight on fraud risk in hospitality, a systematic literature review. International Journal of Hospitality Management, 116. https://doi.org/10.1016/j.ijhm.2023.103630
Kihl, L. A., Misener, K. E., Cuskelly, G., &; Wicker, P. (2021). Tip of the Iceberg? An International Investigation of Fraud in Community Sport. Sport Management Review, 24(1), 24–45. https://doi.org/10.1016/j.smr.2020.06.001
Koomson, T. A. A., Owusu, G. M. Y., Bekoe, R. A., &; Oquaye, M. (2020). Determinants of asset misappropriation at the workplace: the moderating role of perceived strength of internal controls. Journal of Financial Crime, 27(4), 1191–1211. https://doi.org/10.1108/JFC-04-2020-0067
Kumar, K., Bhattacharya, S., &; Hicks, R. (2018). Employee perceptions of organization culture with respect to fraud – where to look and what to look for. Pacific Accounting Review, 30(2), 187–198. https://doi.org/10.1108/PAR-05-2017-0033
Kuo, C., &; Tsang, S. S. (2023). Detection of price manipulation fraud through rational choice theory: evidence for the retail industry in Taiwan. Security Journal, 36(4), 712–731. https://doi.org/10.1057/s41284-022-00360-3
Lenz, P. J., & Graycar, A. (2016). Stealing from the boss: Who is looking? Journal of Financial Crime, 23(3), 613–623. https://doi.org/10.1108/JFC-09-2015-0053
MacAilao, M. C. (2020a). Raising the red flags: The concept and indicators of occupational fraud. Journal of Critical Reviews, 7(11), 26–29. https://doi.org/10.31838/jcr.07.11.06
MacAilao, M. C. (2020b). The internal auditors beyond auditing norms. Journal of Critical Reviews, 7(11), 67–70. https://doi.org/10.31838/jcr.07.11.10
Mangala, D., &; Soni, L. (2023). A systematic literature review on frauds in banking sector. In Journal of Financial Crime (Vol. 30, Issue 1, pp. 285–301). Emerald Publishing. https://doi.org/10.1108/JFC-12-2021-0263
Maulidi, A. (2020). Storytelling of bureaucratic white-collar crimes in Indonesia: is it a matter of reciprocal norm? Journal of Financial Crime, 27(2), 573–586. https://doi.org/10.1108/JFC-07-2019-0087
Maulidi, A., &; Ansell, J. (2020). Tackling practical issues in fraud control: a practice-based study. Journal of Financial Crime, 28(2), 493–512. https://doi.org/10.1108/JFC-07-2020-0150
Nawawi, A., &; Salin, A. S. A. P. (2018). Internal control and employees' occupational fraud on expenditure claims. Journal of Financial Crime, 25(3), 891–906. https://doi.org/10.1108/JFC-07-2017-0067
Nee, C., Button, M., Shepherd, D., Blackbourn, D., &; Leal, S. (2019). The psychology of the corrupt: some preliminary findings. Journal of Financial Crime, 26(2), 488–495. https://doi.org/10.1108/JFC-03-2018-0032
N'Guilla Sow, A., Basiruddin, R., Mohammad, J., &; Abdul Rasid, S. Z. (2018). Fraud prevention in Malaysian small and medium enterprises (SMEs). Journal of Financial Crime, 25(2), 499–517. https://doi.org/10.1108/JFC-05-2017-0049
Nigrini, M. J. (2019). The patterns of the numbers used in occupational fraud schemes. Managerial Auditing Journal, 34(5), 602–622. https://doi.org/10.1108/MAJ-11-2017-1717
Omair, B., &; Alturki, A. (2020). Multi-Dimensional Fraud Detection Metrics in Business Processes and their Application. In IJACSA) International Journal of Advanced Computer Science and Applications (Vol. 11, Issue 9). www.ijacsa.thesai.org
Peltier-Rivest, D. (2009). An analysis of the victims of occupational fraud: a Canadian perspective. Journal of Financial Crime, 16(1), 60–66. https://doi.org/10.1108/13590790910924966
Peltier-Rivest, D., & Lanoue, N. (2011). Thieves from within: Occupational fraud in Canada. Journal of Financial Crime, 19(1), 54–64. https://doi.org/10.1108/13590791211190722
Peltier-Rivest, D., &; Lanoue, N. (2015). Cutting fraud losses in Canadian organizations. Journal of Financial Crime, 22(3), 295–304. https://doi.org/10.1108/JFC-11-2013-0064
Ratmono, D., & Frendy. (2022). Examining the fraud diamond theory through ethical culture variables: A study of regional development banks in Indonesia. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2117161
Said, J., Alam, M. M., Karim, Z. A., &; Johari, R. J. (2018). Integrating religiosity into fraud triangle theory: findings on Malaysian police officers. Journal of Criminological Research, Policy and Practice, 4(2), 111–123. https://doi.org/10.1108/JCRPP-09-2017-0027
Shepherd, D., Beatty, E., Button, M., &; Blackbourn, D. (2020). The media, personal digital criminal legacies and the experience of offenders convicted of occupational fraud and corruption. Journal of Criminological Research, Policy and Practice, 6(1), 3–16. https://doi.org/10.1108/JCRPP-05-2019-0033
Shepherd, D., &; Button, M. (2019). Organizational Inhibitions to Addressing Occupational Fraud: A Theory of Differential Rationalization. Deviant Behavior, 40(8), 971–991. https://doi.org/10.1080/01639625.2018.1453009
Suh, J. B., Nicolaides, R., & Trafford, R. (2019). The effects of reducing opportunity and fraud risk factors on the occurrence of occupational fraud in financial institutions. International Journal of Law, Crime and Justice, 56, 79–88. https://doi.org/10.1016/j.ijlcj.2019.01.002
Suh, J. B., Shim, H. S., &; Button, M. (2018). Exploring the impact of organizational investment on occupational fraud: Mediating effects of ethical culture and monitoring control. International Journal of Law, Crime and Justice, 53, 46–55. https://doi.org/10.1016/j.ijlcj.2018.02.003
Talib, S. A., Hasnan, S., Hussain, A. R. M., Ali, M. M., &; Ismail, R. F. (2024). Determinants of asset misappropriation in small and medium enterprises: Evidence from Malaysia. Journal of Management World, 2024(1), 1–12. https://doi.org/10.53935/jomw.v2024i1.269
Tranfield, D., Denyer, D., &; Smart, P. (2003). Towards a Methodology for Developing Evidence-Informed Management Knowledge by Means of Systematic Review. British Journal of Management, 14(3), 207–222.
Yang, M., & Chen, Y. (2023). Cognitive rationalization in occupational fraud: structure exploration and scale development. Frontiers in Psychology, 14. https://doi.org/10.3389/fpsyg.2023.1112127
Yekini, K., Ohalehi, P., Oguchi, I., &; Abiola, J. (2018). Workplace fraud and theft in SMEs: Evidence from the mobile telephone sector in Nigeria m e Workplace theft in SMEs: Evidence from the mobile telephone sector in Nigeria. Journal of Financial Crime, 25(4), 969–983.
Zakaria, K. M., Nawawi, A., &; Puteh Salin, A. S. A. (2016). Internal controls and fraud-empirical evidence from oil and gas company. Journal of Financial Crime, 23(4), 1154–1168. https://doi.org/10.1108/JFC-04-2016-0021
Zyglidopoulos, S. C., &; Fleming, P. J. (2008). Ethical distance in corrupt firms: How do innocent bystanders become guilty perpetrators? Journal of Business Ethics, 78(1–2), 265–274. https://doi.org/10.1007/s10551-007-9378-4
Published
2024-09-06
How to Cite
PUDJIWATI, Arni; UTOMO, Dwi Cahyo.
Breaking Through the Wall of Occupational Fraud: A Systematic Literature Review.
E-Jurnal Akuntansi, [S.l.], v. 34, n. 8, sep. 2024.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/114947>. Date accessed: 15 oct. 2024.
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