The Impact of using Computerized Accounting Information Systems in detecting Fraud; An analytical study for the construction sector in KRG
DOI:
https://doi.org/10.26750/Vol(10).No(3).Paper34Keywords:
CAIS, Fraud, Internal Control, Audit Procedures and Good Governance.Abstract
This academic paper investigates whether accounting fraud has been detected with the use of computerized accounting information systems (CAIS) and what can be done to protect a company’s fear resources from theft or misuse. Even though organizations in the current era are confronted with technological advancements, but still no previous study in the construction sector has investigated these subject matters through the lens of CAIS.
To obtain the objectives of the study, self-administrated questionnaires were designed on a five-point Likert scale to collect data, judgment sampling was applied, and the sample size was 140. Independent variables of the study represent features of CAIS, while dependent variables represent detecting fraud. Empirically the statistical SPSS software has been used to analyse the identified data and concluded results indicate features of CAIS through internal control, audit procedures and good governance as construct moderating variables enable organizations to detect fraud.
References
AbuMusa AA (2008) Information technology and its implications for internal auditing An empirical study of Saudi organizations. Managerial Auditing Journal 23: 438-466.
Al Bataineh, I. and Bataineh, A., 2018. The Relationship Between Computerized Accounting Information Systems and Rationalizing the Government Expenditures at the General Budget of Jordan. Research Journal of Finance and Accounting, 9(8), pp.171-178.
Albrecht, W. S., Romney, M. B., Cherrington, D. J., Payne, I. R., Roe, A. J., & Romney, M. B. (1986). Red-flagging management fraud: A validation. Advances in Accounting, 3(3), 323-333.
Alleyne, P. and Howard, M., 2005. An exploratory study of auditors’ responsibility for fraud detection in Barbados. Managerial Auditing Journal.
Almasria, N., Airout, R.M., Samara, A.I., Saadat, M. and Jrairah, T.S., 2021. The role of accounting information systems in enhancing the quality of external audit procedures. Journal of management Information and Decision Sciences, 24(7), pp.1-23.
Amahalu, N., Abiahu, M.F.C. and Chinyere, O., 2017. Comparative analysis of computerized accounting system and manual accounting system of quoted Microfinance Banks (MFBs) in Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 7(2), pp.30-43.
Ameen, A.A. and Ahmad, K., 2017. Information systems strategies to reduce financial corruption. In Leadership, Innovation and Entrepreneurship as Driving Forces of the Global Economy (pp. 731-740). Springer, Cham.
Ameh, J. and Odusami, K., 2010. Professionals’ ambivalence toward ethics in the Nigerian construction industry.
Amidu, M., Effah, J. and Abor, J., 2011. E-accounting practices among small and medium enterprises in Ghana. Journal of Management Policy and Practice, 12(4), pp.146-155.
Anggraeni, A.F., 2016. Correlation between information technology and management information systems quality. International Journal of Scientific & Technology Research, 5(6), pp.168-172.
Bales, K. and Fox, T.L., 2011. Evaluating a trend analysis of fraud factors. Journal of Finance and Accountancy, 5, p.1.
Best, P.J., Mohay, G. and Anderson, A., 2004. Machine‐independent audit trail analysis—a tool for continuous audit assurance. Intelligent Systems in Accounting, Finance & Management: International Journal, 12(2), pp.85-102.
Bowen, P., Edwards, P., & Cattell, K. (2012, September). Corruption in the South African construction industry: A mixed methods study. In Proceedings of the 28th Annual ARCOM Conference, Edinburgh, United Kingdom (pp. 521-31).
Brown, J. and Loosemore, M., 2015. Behavioural factors influencing corrupt action in the Australian construction industry. Engineering, Construction and Architectural Management.
Chan, A.P. and Owusu, E.K., 2017. Corruption forms in the construction industry: Literature review. Journal of Construction Engineering and Management, 143(8), p.04017057.
Dorée, A.G., 2004. Collusion in the Dutch construction industry: an industrial organization perspective. Building research & information, 32(2), pp.146-156.
Elbarrad, S.S., 2012. Rationalizing the investment decision in computerized accounting information systems-An applied study on Saudi Arabian companies. International Journal of Economics and Finance, 4(8), pp.42-58.
el-Dalabeeh, A. H., & ALshbiel, S. (2012). The role of computerized accounting information systems in reducing the costs of medical services at King Abdullah University Hospital. Interdisciplinary Journal of Contemporary Research in Business, 4, 893-900. Retrieved from http://www.ijcrb.webs.com.
Grande, E.U., Estébanez, R.P. and Colomina, C.M., 2011. The impact of Accounting Information Systems (AIS) on performance measures: empirical evidence in Spanish SMEs. The international journal of digital accounting research, 11(1), pp.25-43.
Holtfreter, K., 2005. Is occupational fraud “typical” white-collar crime? A comparison of individual and organizational characteristics. Journal of Criminal Justice, 33(4), pp.353-365.
Hurt, R. L. (2013). Accounting information systems: Basic concepts and current issues (3rd ed). New York, NY: McGraw-Hill/Irwin.
Ilić, M.P. and Anđelić, S., 2017. The role of computerized accounting information system in detecting accounting errors and accounting fraud. Bizinfo (Blace), 8(1), pp.17-30.
Islam, A., Corney, M., Mohay, G., Clark, A., Bracher, S., Raub, T. and Flegel, U., 2011, January. Detecting collusive fraud in enterprise resource planning systems. In IFIP International Conference on Digital Forensics (pp. 143-153). Springer, Berlin, Heidelberg.
Ismail, N.A. and King, M., 2006. The alignment of accounting and information systems in SMEs in Malaysia. Journal of Global Information Technology Management, 9(3), pp.24-42.
Itang, A. E. (2018). Challenges impeding effective implementation of internal accounting controls in computerized systems: A survey of Nigerian SMEs. Proceedings of the 2018 International Doctoral Conference of LIGS University, Honolulu, USA, August 30, 2018, 69–76. Retrieved from https://www.ligsuniversity.com/data/2018-12-20-11-06-56-International-Doctoral-Conference-of-LIGSUniversity- New-Challenges-in-Global-Economy.pdf
Itang, A.E., 2020. Computerized accounting systems: Measuring structural characteristics. Research Journal of Finance and accounting, 11(16), pp.38-54.
Kassem, R. and Higson, A., 2012. The new fraud triangle model. Journal of emerging trends in economics and management sciences, 3(3), pp.191-195.
Laudon, K.C. and Laudon, J.P., 2004. Management information systems: Managing the digital firm. Pearson Educación.
Le, Y., Shan, M., Chan, A.P. and Hu, Y., 2014. Investigating the causal relationships between causes of and vulnerabilities to corruption in the Chinese public construction sector. Journal of construction engineering and management, 140(9), p.05014007.Mitchell, S. H. (1997) Management fraud trends, Secured Lender, pp. 104-108.
Modugu, P.K., Ohonba, N. and Izedonmi, F., 2012. Challenges of auditors and audit reporting in a corrupt environment. Research Journal of Finance and Accounting, 3(5), pp.77-82.
Munthali, F., Muchemwa, V., Phiri, W. and Ng’andwe, E., An empirical investigation of the adequacy of security controls of computerized accounting information systems (CAIS) in the listed companies in Zambia.
Olken, B. (2004) Monitoring Corruption: Evidence from a Field Experiment in Indonesia, NBER Working Paper 11753.
Ömer, T.A.N., 2016. Impact of accounting information systems on internal auditors in Turkey. Öneri Dergisi, 12(46), pp.245-260.
Oni, A. A. (2015). Computer assisted audit techniques and audit quality in developing countries: Evidence from Nigeria. Journal of Internet Banking and Commerce, 20(2), 1-17.
Peltier-Rivest, D. and Lanoue, N., 2015. Cutting fraud losses in Canadian organizations. Journal of Financial Crime.
Qatanani, K.M. and Hezabr, A.A., 2015. The effect of using accounting information systems to improve the value chain in business organizations-empirical study. European Journal of Accounting Auditing and Finance Research, 3(6), pp.1-11.
Rezaee, Z. (2005), “Causes, consequences, and deterrence of financial statement fraud”, Critical Perspectives on Accounting, Vol. 16 No. 3, pp. 277-298
Romney, B. M and Steinbart, J. P (2009) “Accounting Information System” 11th edition, Upper Saddle River
Singleton, Tommie, Aaron Singleton, Jack Bologna and Robert Lindquist, 2010, Fraud Auditing and Forensic Accounting, 4th Edition, John Wiley & Sons, Inc., New Jersey, USA.
Smith, J. S. (2016). Accounting Information Systems: Ethics, Fraudulent Behavior, and Preventative Measures.
Sohail, M., and Cavill, S. (2008). Accountability to prevent corruption in construction projects. Journal of Construction Engineering and management, 134(9), 729-738.
Stansbury, N. (2005) Exposing the foundations of corruption in construction. In Global Corruption Report (2005) Special Focus: Corruption in Construction and Post Conflict Reconstruction
Steckel, A.J., 2011. Analysis of QuickBooks internal control utilization.
Susanto, A., 2008. Sistem Informasi Akuntansi: Struktur Pengendalian Risiko Pengembangan. Edisi Perdana: Lingga Jaya, p.60.
TAN, Ö. (2017). Impact of accountıng ınformatıon systems on ınternal audıtors ın turkey.
Transparency International. (1999). ―Bribe payers index 1999.‖ 〈http:// archive.transparency.org/policy_research/surveys_indices/bpi/bpi _1999〉 (Jan. 29, 2015).
Transparency International. (2002). “Bribe payers index 2002.” 〈http:// archive.transparency.org/policy_research/surveys_indices/bpi/bpi_2002〉 (Jan. 29, 2015).
Transparency International. (2006). “Bribe payers index 2006.” 〈http:// archive.transparency.org/policy_research/surveys_indices/bpi/bpi_2006〉 (Jan. 29, 2015).
Transparency International. (2008). “Bribe payers index 2008.” 〈http:// archive.transparency.org/policy_research/surveys_indices/bpi/bpi_2008〉 (Jan. 29, 2015).
Transparency International. (2011). “Bribe payers index 2011.” 〈http://bpi .transparency.org/bpi2011〉 (Jan. 29, 2015).
Turban, et al. (2003). Information Technology.Second Edition. USA: John Wiley & Sons,Inc.
Vanasco, R. R. (1998). Fraud auditing. Managerial Auditing Journal.
World Bank. "Enhanced Transparency in Procurement through Voluntary Disclosure under the RTI Act (2013)." Washington DC, 2009.
Wyslocka, E., and Jelonek, D. (2015). Accounting in the cloud computing. Turkish Online Journal of Science & Technology, 5(4), 1-11.
Yuniarti, R.D. and Ariandi, I., 2017. The effect of internal control and anti-fraud awareness on fraud prevention (A survey on inter-governmental organizations). Journal of Economics, Business, and Accountancy Ventura, 20(1), pp.113-124.
Amy Fontinelle (2017). Introduction To Accounting Information Systems.
Hall, J.A (2011), Accounting information system, seventh ed., Australia. South-western cengage learning.
Romney, M. B, Steinbart, P. j, Summers, S. L and Wood, D, A, (2021) accounting information systems, fifteenth ed., Harlow, Pearson 2021.
Simkin, M.G, Rose, J, M and Norman, C, S (2012) Core concepts of accounting information systems, twelfth ed., USA. John Wiley & Sons, Inc, 2012.
Turner, L, Weickgenannt, A and Copeland, M. K, 2017 Accounting information systems controls and processes, Third ed., USA, Wiley 2017.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Journal of University of Raparin
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
