Financial shenanigans: The importance of anti-fraud education

Diane Jamieson,Ifedapo Francis Awolowo,Firoz Bhaiyat,Joanne Winfield,Nigel Garrow

doi:10.22495/jgr_v8_i3_p5

Diane Jamieson, Ifedapo Francis Awolowo + Show 3 more

Open Access

https://doi.org/10.22495/jgr_v8_i3_p5

Copy DOI

Abstract

Fraud, financial distress and liquidation, audit failures, hubris and narcissism, are all genuine and serious issues in today’s business environment. Challenges exist for organisations in many different guises as they strive to achieve their goals. This often results in a balancing act between the right course of action and action which could be seen to be ethically immoral or even illegal. Recently many organisations have encountered financial distress for different reasons, at a high cost to employees, pensioners, and other stakeholders. How can organisations ensure that legal and ethical decisions and actions are taken? Through a review of literature, recent case studies, and the incidence of relevant courses in universities, this paper examines the importance of education in the fight against corporate fraud. Evidence indicates that employees can be effective corporate watchdogs in the fight against financial deception and unethical decisions; increasing the number of people in a firm with enhanced fraud awareness and knowledge through education should, therefore, be one of the essential requirements for our future business managers and leaders. We indicate why anti-fraud education is important in the fight against financial shenanigans, and why it should be more widely adopted for the benefit of all stakeholders.

Highlights

Over the last fifty years, the business community has experienced a syndrome of ethical breakdowns worldwide, including extremely costly financial statement fraud (Albrecht, Holland, Malagueño, Dolan, & Tzafrir, 2015)
We indicate why anti-fraud education is important in the fight against financial shenanigans, and why it should be more widely adopted for the benefit of all stakeholders
This paper considers why this is not replicated to such an extent in other countries and suggests why anti-fraud education is important in the fight against financial shenanigans to accounting majors but to all business managers and leaders

Summary

INTRODUCTION

Over the last fifty years, the business community has experienced a syndrome of ethical breakdowns worldwide, including extremely costly financial statement fraud (Albrecht, Holland, Malagueño, Dolan, & Tzafrir, 2015). Many companies have experienced financial distress since the global financial crisis of 2008 This has had serious adverse consequences for a range of stakeholders, most notably employees, pensioners, and creditors, who are typically innocent parties in the fraudulent activity but suffer significant long term financial consequences from the actions of others. Many organisations have encountered financial distress for different reasons, at a high cost to employees, pensioners, and other stakeholders. Employees can be effective corporate watchdogs in the fight against financial deception and unethical decisions, so we suggest that fraud awareness education should be one of the essential requirements for our future business managers and leaders.

LITERATURE REVIEW

Cost of fraud

Forensic accounting

Findings

CONCLUSION