Inclination towards fraud among the participants in financial reporting process

• Main Authors: Awang, Yunita, Ismail, Suhaiza, Abdul Rahman, Abdul Rahim
• Format: Conference or Workshop Item
• Language: English
• Published: 2015
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/17600/1/456-ICAS2015%20456-464.pdf; http://repo.uum.edu.my/17600/; http://www.icas.my/index.php/proceedings/3-icas-2015-proceedings/148-inclination-towards-fraud-among-the-participants-in-financial-reporting-process
• Institution: Universiti Utara Malaysia

Fraud is a significant ethical dilemma for businesses and harmful to the capital market participants.Financial reporting fraud is an intentional misstatement of financial information to mislead the financial statement users.It causes huge losses to the organizations, threatens the investors’ confidence on the published financial statements and erodes the image of accounting profession.This descriptive paper attempts to explore the inclination level towards financial reporting fraud among the participants in the financial reporting process and to determine the effect of their personal background on such inclination level.Using a sample of 121 Muslim participants in the financial reporting process at Malaysian banking institutions, the findings indicate that the inclination level is low.The inclination level is only affected by the working experience at the present bank and the bank type.The findings provide insights to the banks’ stakeholders on the inclination level of fraud among the participants in financial reporting process and are particularly useful to the top management of banking institutions for a better understanding on personal background items influencing fraud in financial reporting intention.Limitations and suggestions for future research conclude the paper.