Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/83753
Title: Maltese auditors’ perceptions of motivations leading to management fraud : an analysis
Authors: Vassallo, Chloe (2021)
Keywords: Auditors -- Malta
Fraud -- Malta
Fraud -- Prevention
Commercial crimes -- Malta
Issue Date: 2021
Citation: Vassallo, C. (2021). Maltese auditors’ perceptions of motivations leading to management fraud : an analysis (Master’s dissertation).
Abstract: PURPOSE: This dissertation aims to understand the perceptions of Maltese external auditors in respect of what management motivations may lead to management fraud in Malta. Understanding the motivations may increase the likelihood of detecting such fraud. Furthermore, the dissertation takes this understanding one step further by analysing also the perceptions of Maltese external auditors with regards to the most suitable prevention measures for combatting management fraud. DESIGN: In order to achieve the research objectives, a mixed methodology was adopted. Data was gathered by conducting semi-structured interviews as well as through the distribution of an online questionnaire. FINDINGS: The findings indicated that the integrity of management and the capabilities of the fraud perpetrator are significant factors and should be considered in the assessment of fraud risks. The findings also suggested that the motivation perceived to be most likely to lead to management fraud is concealing to company’s financial distress. Furthermore, other motivations that may be more relevant within the local context such as tax evasion, were outlined during the interviews. Finally, the prevention techniques perceived to be most suitable are setting the tone at the top, segregation of duties and having a certified fraud examiner form part of the internal or external audit team. CONCLUSIONS: The study concluded that Maltese external auditors do not give particular importance to the macro-environment as well as personal problems in the assessment of fraud risk factors. Furthermore, various significant differences emerged with respect to the perceptions of audit staff ranks with regards to the lead motivators of management fraud. On the other hand, hardly any prevention technique mean scores were found to significantly differ in terms of firm type and audit staff rank. VALUE: This dissertation is the first to provide empirical evidence on the management motivations that lead to management fraud and what techniques are most suitable in preventing such fraud in the context of Malta. The findings can aid Maltese regulators and external auditors in reducing fraud risks by understanding what motivations are most likely to lead management to engage in financial reporting fraud. Moreover, the findings may also be beneficial for Maltese companies as it sheds light on what measures are most suitable to invest in to overcome this growing concern of management fraud.
Description: M. Accty.(Melit.)
URI: https://www.um.edu.mt/library/oar/handle/123456789/83753
Appears in Collections:Dissertations - FacEma - 2021
Dissertations - FacEMAAcc - 2021

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