المجلة الدولية لنشر البحوث والدراسات

International Journal of Research and Studies Publishing

المجلة الدولية لنشر البحوث والدراسات
القائمة الرئيسية

The impact of the Fraud Examiners on Fraud Risk Management in Lehman Brothers Inc. in the financial crisis in the United States

By: Ahmed Farouk Ali Mohammed

Master of Risk Management, Faculty of Management, Midocean University, Saudi Arabia


Abstract:

In this research we try to provide a practical recommendation to help the business leaders prevent and detect the fraud in various business environment, these strategies may help the companies to make difference when it comes to fraud risk management through highlighting the importance of fraud examiners in the fraud risk management. Moreover, fraud examiners can help corporates monitor and control their fraud exposures using five main principles, Risk governance, Risk assessment, Control Activities, Investigation and Corrective Action, Risk Monitoring. This research focuses on the pivotal role of fraud examiners in preventing and detecting fraud particularly in the United States. Through an examination of historical financial scandals such as Enron, Lehman Brother Inc, …etc., corporate governance, risk management theories. The study aims to elucidate the multifaceted contributions of fraud examiners. Adopting a mixed-methods approach involving qualitative interviews and quantitative surveys, the research seeks to uncover the impact of the fraud examiners on identifying, preventing, and addressing fraudulent activities which hold implications for the corporate governance, financial stability, and investor confidence. Association of Certified Fraud Examiners. (2022) report to the Nations on Occupational Fraud and Abuse, found that fraud examiners who are independent of the entity being audited are more likely to be objective and impartial in their investigations. They are also less likely to be influenced by management or other employees who may be involved in the fraud


Keywords:

Fraud, Fraud Examiners, Risk assessment, Corporate Governance

DOI

Email

About the Authors

Master of Risk Management, Faculty of Management, Midocean University, Saudi Arabia

References

1. Albrecht, W. S., Albrecht, C. O., Albrecht, C. C., & Zimbelman, M. F. (2018). Fraud examination. Cengage Learning.https://books.google.com/books?hl=en&lr=&id=-J1OEAAAQBAJ&oi=fnd&pg=PP1&dq=Albrecht,+W.+S.,+Albrecht,+C.+C.,+Albrecht,+C.+O.,+%26+Zimbelman,+M.+F.+(2019).+Fraud+Examination.+Cengage+Learning.&ots=fzZu6kor6O&sig=ADmBNtstOSPnj4UoUOjXdNAFH_Y
2. Ashbaugh-Skaife, H., Collins, D. W., & LaFond, R. (2006). The effects of corporate governance on firms’ credit ratings. Journal of accounting and economics, 42(1-2), 203-243. https://www.sciencedirect.com/science/article/pii/S016541010600036X
3. Beasley, M. S., Carcello, J. V., Hermanson, D. R., & Lapides, P. D. (2000). Fraudulent financial reporting: Consideration of industry traits and corporate governance mechanisms. Accounting horizons, 14(4), 441-454. https://publications.aaahq.org/accounting-horizons/article-abstract/14/4/441/1660
4. Blundell-Wignall, A., & Atkinson, P. (2008). The Subprime Crisis: Causal Distortions and Regulatory Reform. Financial Market Trends, 2008(2), 1-26. https://rba.gov.au/publications/confs/2008/blundell-wignall-atkinson.html
5. Burce Dorris J.D. President and CEO, A. o. (2022). Occupational Fraud 2022 - A REPORT TO THE NATIONS.
6. Burkhanov, U. (2011). The big failure: Lehman Brothers’ effects on global markets. European Journal of Business and Economics, 2.
7. Davies, H., & Zhivitskaya, M. (2018). Three lines of defence: a robust organising framework, or just lines in the sand?. Global Policy, 9, 34-42.
8. Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1), 49-64. https://journals.sagepub.com/doi/abs/10.1177/031289629101600103
9. Dufey, G., & Girma, S. (2010). Corporate corruption in the United Kingdom. European Journal of Political Economy, 26(2), 220-234.
10. Healy, P. M., & Palepu, K. G. (2003). The fall of Enron. Journal of Economic Perspectives, 17(2), 3-26. https://www.aeaweb.org/articles?id=10.1257/089533003765888403 https://advisory.kpmg.us/articles/2022/ten-key-regulatory-challenges-2022-fraud-financial-crimes.html
11. Jensen, M. C., & Meckling, W. H. (2019). Theory of the firm: Managerial behavior, agency costs and ownership structure. In Corporate governance (pp. 77-132). Gower. https://api.taylorfrancis.com/content/chapters/edit/download?identifierName=doi&identifierValue=10.4324/9781315191157-9&type=chapterpdf
12. Kindle, B. S. (2019). CFCS CERTIFICATION EXAMINATION STUDY MANUAL. In E. B. Kenneth Barden. Association of Certified Financial Crime Specialists.
13. Kranacher, M. J., & Riley, R. (2019). Forensic accounting and fraud examination. John Wiley & Sons. https://books.google.com/books?hl=en&lr=&id=GnOODwAAQBAJ&oi=fnd&pg=PR12&dq=Kranacher,+M.+J.,+Riley+Jr,+R.+A.,+%26+Wells,+J.+T.+(2011).+Forensic+accounting+and+fraud+examination.+John+Wiley+%26+Sons.&ots=PLS1t79CKb&sig=RnU3QZXCZ5b6E3gX1PQZQgYQtM4
14. Krishnan, J., & Partington, G. (2013). Audit committee effectiveness and financial reporting quality: The case of property-casualty insurers. Accounting Review, 88(3), 1003-1034.
15. Lam, J. (2003). Enterprise risk management: From incentives to controls. John Wiley & Sons
16. Luburić, R. (2017). Strengthening the three lines of defence in terms of more efficient operational risk management in central banks. Journal of Central Banking Theory and Practice, 6(1), 29-53.
17. Luburic, R., Perovic, M., & Sekulovic, R. (2015). Quality management in terms of strengthening the" three lines of defence" in risk management-process approach. International Journal for Quality Research, 9(2), 243.
18. Mansor, N., & Abdullahi, R. (2015). Fraud triangle theory and fraud diamond theory. Understanding the convergent and divergent for future research. International Journal of Academic Research in Accounting, Finance and Management Science, 1(4), 38-45.
19. MARZUKI, M. M., MAJID, W. Z. N. A., AZIS, N. K., ROSMAN, R., & ABDULATIFF, N. K. H. (2020). Fraud risk management model: A content analysis approach. The Journal of Asian Finance, Economics and Business (JAFEB), 7(10), 717-728.
20. Pierce, E. M., Goldstein, J., & Pierce, E. (2016, October). Moving from enterprise risk management to strategic risk management: examining the revised COSO ERM framework. In 14th Global Conference on Busness and Economics,(October).
21. Said, J., Alam, M., Ramli, M., & Rafidi, M. (2017). Integrating ethical values into fraud triangle theory in assessing employee fraud: Evidence from the Malaysian banking industry. Journal of International Studies, 10(2).
22. Sánchez-Aguayo, M., Urquiza-Aguiar, L., & Estrada-Jiménez, J. (2021). Fraud detection using the fraud triangle theory and data mining techniques: a literature review. Computers, 10(10), 121.
23. Scott, H. S., Campbell, D., & Gulliver, J. (2021). Regulation of Governance & Risk Management: The Intersection of Banking & Technology. Program on International Financial Systems.
24. Team, C. (2023, Jun 28). corporatefinanceinstitute.com. Retrieved from https://corporatefinanceinstitute.com/resources/accounting/top-accounting-scandals/
25. Thomas, C. W., & Gibson, S. G. (2002). Framing the Enron story: The impact of rhetoric on stakeholder opinions. Business Communication Quarterly, 65(2), 9-22.
26. Wells, J. T. (2018). International Fraud Handbook. John Wiley & Sons. https://books.google.com/books?hl=en&lr=&id=nI9aDwAAQBAJ&oi=fnd&pg=PR9&dq=Wells,+J.+T.+(2018).+Principles+of+Fraud+Examination+(5th+ed.).+John+Wiley+%26+Sons.&ots=DGjOOr_qP1&sig=4AsEVxeBfryRDt6euNp3HY6dcZ4
27. https://docs.google.com/forms/d/1mlS0O7eLTO-tfgSJw-MezuhGI_oSS3JglN6YKbaa6NY/edit#responses

Download PDF





المجلة الدولية لنشر البحوث والدراسات

المجلة الدولية لنشر البحوث والدراسات مجلة علمية محكمة متخصصة في نشر الابحاث العلمية في مختلف التخصصات، تصدر المجلة الدولية دورياً كل شهر. تصدر المجلة في المملكة الأردنية الهاشمية

تعليمات النشر للباحث

  • » تنسيقات البحث
  • » قالب البحث
  • » أخلاقيات النشر
  • » اقرار الباحث

    • سياسة الخصوصية

  • » سياسة مراجعة الأبحاث
  • » سياسة الوصول المفتوح
  • » حقوق النشر والترخيص
  • » سياسة الاقتباس

    • للإقتراحات

    نحن نعمل باستمرار على تحسين مجلتنا العلمية وعملية النشر لدينا بهدف تزويدك بأفضل تجربة نشر علمية. فإننا نقدر رأيك ونرحب بأي اقتراحات عبر الإيميل التالي: info@ijrsp.com

    جميع الحقوق © محفوظة المجلة الدولية لنشر البحوث والدراسات 2019