Purpose – The objective of this study is to investigate the likelihood of fraud occurrence according to the perception of Ministry of Foreign Affairs (MOFA) officers in Malaysia by applying the Fraud Diamond Theory. The study aims to explore the relationships between key elements of opportunity, pressure, rationalization, and capability with the likelihood of fraud occurrence. Design/methodology/approach – This study utilizes primary data collected by a questionnaire-based survey on 104 officers from the Accounts and Finance Departments of MOFA. Data are analyzed using descriptive statistics and cross-sectional regression. Findings – The findings of this study showed a statistically significant positive relationship between 4 basic variables of the Fraud Diamond Theory – opportunity, pressure, rationalization and capability with the likelihood of fraud occurrence. Practical implications – Our findings will help public officials and administrators to come out with robust system for instance utilizing Artificial Intelligent for fraud detection or fraud deterrence and (or) customized methods that may be used to mitigate fraud risk. Our findings also give insights to policymaker(s) to strengthen the existing regulations governing fraud occurrence. On top of revamping existing procedures, rules and regulations concerning the governance and regulations of public sectors, the policymaker(s) may enhance the enforcement of the existing rules and regulations pertaining to the fraudulent behavior in order to combat the fraud occurrence in public sector agencies. Originality/value – This study is an original work based on the primary data collection involving the public officials of the Ministry of Foreign Affairs Malaysia.

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Factors Influencing Fraud Occurrence: The Perception of Ministry of Foreign Affairs Public Officials

  • Noor Marini Haji-Abdullah,
  • Ivy Veronny M. Edward-Dungot,
  • Zulnaidi Yaacob,
  • Iskandar Muda

摘要

Purpose – The objective of this study is to investigate the likelihood of fraud occurrence according to the perception of Ministry of Foreign Affairs (MOFA) officers in Malaysia by applying the Fraud Diamond Theory. The study aims to explore the relationships between key elements of opportunity, pressure, rationalization, and capability with the likelihood of fraud occurrence. Design/methodology/approach – This study utilizes primary data collected by a questionnaire-based survey on 104 officers from the Accounts and Finance Departments of MOFA. Data are analyzed using descriptive statistics and cross-sectional regression. Findings – The findings of this study showed a statistically significant positive relationship between 4 basic variables of the Fraud Diamond Theory – opportunity, pressure, rationalization and capability with the likelihood of fraud occurrence. Practical implications – Our findings will help public officials and administrators to come out with robust system for instance utilizing Artificial Intelligent for fraud detection or fraud deterrence and (or) customized methods that may be used to mitigate fraud risk. Our findings also give insights to policymaker(s) to strengthen the existing regulations governing fraud occurrence. On top of revamping existing procedures, rules and regulations concerning the governance and regulations of public sectors, the policymaker(s) may enhance the enforcement of the existing rules and regulations pertaining to the fraudulent behavior in order to combat the fraud occurrence in public sector agencies. Originality/value – This study is an original work based on the primary data collection involving the public officials of the Ministry of Foreign Affairs Malaysia.