Business Commons^™

Exploring The Impact Of Incentives On Management Behavior, Chen Zhao

Graduate Theses, Dissertations, and Problem Reports

This dissertation is comprised of three studies that examine the impact of incentives on management behavior to complement agency problems literature. The first paper studies whether incentives associated with firm life cycle stages impact management disclosure quality. The second paper explores these incentives more deeply and investigates whether the likelihood of fraud is different across life cycle stages. The third paper examines whether rating agencies play a role in alleviating agency problems in nonprofit organizations by increasing public exposure and reducing information asymmetry.

Study one examines the relationship between firms’ life cycle stages and disclosure quality. Life cycle stages are …

Mysteries Solved And Unsolved In The Search For The Missing Cryptoqueen, Claudia Calhoun

RadioDoc Review

The Missing Cryptoqueen, produced for BBC Sounds by Jamie Bartlett and Georgia Catt, investigates the cryptocurrency scam fronted by Dr. Ruja Ignatova, self-described “cryptoqueen.” The series benefits from the engrossing complexity of a sprawling conspiracy: The podcasters travel across continents to find both the scammers and their victims, making important stops in the U.K., Germany, Bulgaria, the Netherlands, and Uganda. The series also benefits from its own breathless narration, which keeps listeners in the present-tense of the storytelling. This was an especially compelling series for the large audience who listened as the weekly episodes were released, as the series integrated …

Pharmacy Internal Controls: A Call For Greater Vigilance During The Covid-19 Pandemic, Andrew N. Mason

Faculty Publications -School of Business

For businesses that store physical goods, managing product inventories and financial cost accounting controls are critical. Pharmacies are under considerable scrutiny, due to the nature of their merchandise, making internal controls even more vital. Due to the emergence of COVID-19 and government mitigation strategies, the US economy has seen significant macro- and microeconomic effects. COVID-19 has changed the pharmacy working environment, which could theoretically increase rates of employee drug diversion. Therefore, better inventory management could reduce the misuse of pharmaceutical drugs from fraudulent and drug diversion activities. The author explored secondary findings to create a multidisciplinary conceptual analysis of the …

Applying Visual Analytics To Fraud Detection Using Benford's Law, Clarence Goh

Research Collection School Of Accountancy

Benford's law has been examined as a useful tool for detecting potential accounting fraud. In this article, I provide an introduction to Benford's law and examine how the first digit, second digit, and first-two digits tests in Benford's law can be employed to detect potential accounting fraud. In addition, I also highlight, through a worked example, how Tableau, a visual analytics tool, can be used to perform Benford's law's first-digit test to detect potential fraud.

E-Commerce Within Lebanese Banks Sustainabilityconcerns; Advantages And Limitations, Mohamad Abdulwahab Wajih Tabsh

BAU Journal - Health and Wellbeing

Electronic commerce is conducting and executing any trade, business or service through the electronic channels and the Internet website. By analyzing the advantages and limitations of e-commerce we identify the positive contribution to the traditional commercial practice and its Limitations. We also list the effects of ecommerce on the banks in Lebanon within the context of sustainability concern. We summarize the positive additions to the financial services provided and the negative aspects that are facing the banks in the financial economy and its own characteristics. The ease of conducting e-commerce transactions still carries with it many deficiencies intrinsic to the …

Ums_Hr_Increase In Fraudulent Unemployment Claims Email, University Of Maine System

Office of Human Resources

Email from the University of Maine System Office of Human Resources warning faculty and staff regarding the increased number of fraudulent unemployment claims and what to do about them.

Fraudulent Stock Certificates Of The Norfolk & Western Railway, David Adams

MSU Libraries

No abstract provided.

Analyzing Small Business To Determine The Best Internal Controls To Implement Within Student Organizations In Order To Prevent Fraud, Madison J. Brinkman

Senior Theses

After serving as a treasurer for a student organization it was clear that it would not be difficult to commit fraud and the largest obstacle was likely the guilt that would be associated with being unethical. However, students frequently cheat in an academic setting which is similar to the setting which a student organization operates within, making it possible that leaders in student organizations are committing fraud. Therefore, students were surveyed about both cheating in an academic setting and personal experience with a leader in their student organization committing fraud. The survey results along research regarding past publicized cases of …

Small Nonprofit Fraud: Risk Mitigation Strategies, Anne M. Marchetti

Walden Dissertations and Doctoral Studies

Fraud is a significant worldwide issue for organizations of every size and industry. Small nonprofit organizations are particularly vulnerable to financial and reputational loss due to a fraud incident, which can be devastating. Grounded in the Committee of Sponsoring Organization of the Treadway Commission framework, the purpose of this qualitative single case study was to explore fraud risk mitigation strategies employed by management in a small nonprofit organization in Florida. Three managers in a small nonprofit organization in Florida, participated in face-to-face semistructured interviews to share their fraud risk mitigation strategies. The data collection process also included inspection of business …

Fraud In Nonprofit Organizations, Haylee Walker

Honors College Theses

This study focuses on the impact that occupational fraud has on the nonprofit sector and how nonprofit organizations react to fraud occurrences. Specifically, it focuses on how often nonprofits choose to prosecute fraudsters. It also explores how the negative publicity surrounding a fraud incident in a nonprofit might affect the subsequent amount of charitable donations that nonprofit will receive. Finally, this study will explore whether or not nonprofits have a fiduciary duty to their stakeholders to prosecute fraudsters and publicize fraud incidents.

Essays On Financial Institutions And Advisors, Joseph D. Farizo

Theses and Dissertations--Finance and Quantitative Methods

In my first chapter, I examine how index funds vote their proxies on firms in its index that their family does not hold in its actively managed funds. For a given proxy proposal at a given point in time, I find that an index fund is more likely to oppose management on shares its family does not hold in its active funds than on shares its family does hold in its active funds. I further demonstrate that index fund governance has positive effects on the probability a proposal passes and on shareholder value. In my second chapter coauthored with Will …

Improving Accountants' Ability To Identify, Manage, And Prevent Fraud In Not-For-Profit Organizations, Gabrielle Pauline Fish

Doctoral Dissertations and Projects

Fraud is a growing problem in the not-for-profit (NFP) sector; this problem increases because of the lack of fraud-prevention preparation had by NFP financial professionals. Furthermore, asset misappropriation is the most commonly perpetrated occupational fraud in NFPs. Although approximately 90% of all reported frauds are asset misappropriation, a gap in existing research results in limited data regarding asset misappropriation in NFPs. This study contains an extensive examination of peer-reviewed research regarding fraud topics, with an emphasis on asset misappropriation. The conceptual framework incorporated the Fraud Management Lifecycle Theory, the Fraud Triangle Theory, the Theory of White-Collar Crime, and the Routine …

Private Company Lies, Elizabeth Pollman

All Faculty Scholarship

Rule 10b-5’s antifraud catch-all is one of the most consequential pieces of American administrative law and most highly developed areas of judicially-created federal law. Although the rule broadly prohibits securities fraud in both public and private company stock, the vast majority of jurisprudence, and the voluminous academic literature that accompanies it, has developed through a public company lens.

This Article illuminates how the explosive growth of private markets has left huge portions of U.S. capital markets with relatively light securities fraud scrutiny and enforcement. Some of the largest private companies by valuation grow in an environment of extreme information asymmetry …

Chief Financial Officer Demographic Characteristics And Fraudulent Financial Reporting In China, Jinghui Sun, Pamela Kent, Baolei Qi, Jiwei Wang

Research Collection School Of Accountancy

We investigate whether management's cognitions, values and perceptions are associated with fraud for 18 863 firm-years for Chinese listed firms from 2000 to 2014. Demographic characteristics of the chief financial officer (CFO) are used as proxies for management's cognitions, values and perceptions. We find that fraudulent financial reporting is higher when CFOs are younger, male, and have lower education backgrounds. An analysis of inflated earnings, fictitious assets, material omissions and other material misstatements provide similar results, with the exception that CFOs with higher education levels are associated with more inflated earnings. Accounting and Finance

Perception Of Nonprofit Employees And Board Governance On The Internal Control Of Contributions: A Qualitative Study, Holly Andrea Caldwell

Doctoral Dissertations and Projects

This research contributes to the very limited number of qualitative studies on the development and implementation of internal controls in nonprofit organizations. The study explored the understanding of perceptions regarding internal controls in cash contributions from nonprofit organizational employees, Executive Directors/CEOs, and board members. This embedded single-case study consists of eight nonprofit organizations located in the Commonwealth of Virginia of the United States. Eleven themes of board governance, communication, contributions, development of policies and procedures, efficiency, fiduciary duty, leadership, resource availability, separation of duties, training, and trust were identified through interviews, review of policies and procedures for cash receipts and …

Directed Gifts, Love Offerings And The Uncertain Guidance Of Irs Publication 526 For Donors And Donees To Non-Profit Organizations: Literature Review, Victoria Liggett

Honors College Theses

Love offerings are donations given to an identified beneficiary of a non-profit organization. It can be challenging for tax experts to make accurate tax assessments based on such offerings and enormously difficult for the layperson. This is exacerbated by the unclear directives of the IRS, which include the sometimes nearly inscrutable guidelines of IRS Publication 526. The lack of clarity makes this a hazard for accountants and attorneys involved in tax preparation. Against this backdrop, this paper provides a literature review exploring the history of the issues, current guidelines as decided by court cases, and research done with regards to …

Faculty And Staff Perception Of Financial Fraud In Higher Education, Stephanie Hammons

Mahurin Honors College Capstone Experience/Thesis Projects

This research was designed to survey full-time faculty and staff, from multiple universities, about their experience of fraud within their current and previous institution. Through the survey, we were provided insight into the perception of fraud within higher education institutions and the faculty and staff perception of how the institution handled it. Through the information provided in the survey, it is revealed if whether fraud is a rare occurrence at most institutions or if whether it is a bigger problem than it appears to be. In addition, we will learn how many instances of fraud within different institutions participants have …

Fraud In Small Businesses: A Preliminary Study, Esther Bunn, Jack Ethridge, Kaili Crow

Faculty Publications

This study investigates the attitudes small business owners and managers have towards fraud and internal controls. Commonly small businesses consist of long-term friends and relatives and tend to embody a culture of family, love, and trust. Four factors were identified that lend themselves to a lack of internal controls and a breeding ground for fraud. A survey was distributed to small business owners and management. The responses were analyzed and compared to the data in the 2016 American Certified Fraud Examiners Report to the Nations. Of the four expectations studied, only the anticipated results of Expectation 1 were confirmed.

Strategies To Prevent And Detect Occupational Fraud In Small Retail Businesses, Marquita V. Davis

Walden Dissertations and Doctoral Studies

Business owners' lack of strategies to prevent and detect occupational fraud in small retail businesses in the United States could result in substantial financial losses or insolvency. Grounded in Cressey's fraud triangle, the purpose of this multiple case study was to explore internal control strategies 6 owners of small retail businesses in southeastern Pennsylvania used to prevent and detect occupational fraud. Face-to-face interviews, observations, and documentation are the data collection techniques I used in this study. Data were transcribed, coded, analyzed, and member checked to identify emergent themes. Six themes emerged from the thematic analysis: financial impact, transaction responsibility and …

Caveat Emptor: A Study Of Fraud, Red Flags, And Investor Due Diligence, Katherina D. Albers

Honors College Theses

For decades fraud has been an ever growing problem in our society, costing Americans hundreds of billions of dollars each year. Every investor and consumer pay for the effects and damages of fraud directly or indirectly. Investors need to proactively search for red flags before investing. Through an examination of two recent frauds, Theranos and Fyre Media, I will discuss the frauds perpetrated and the red flags present that investors missed.

Exploring The Perceptions Of Accountants On Academic Preparations Related To Occupational Fraud And Internal Control Weaknesses, Mohamad Majdi Sahloul

Doctoral Dissertations and Projects

Occupational fraud and internal control material weaknesses (ICMWs) have become global issues due to the strong correlation between internal control (IC) and fraud revelation. However, academic education (AE) has a positive influence on deliberative reasoning and ethical decisions. Nevertheless, little is known of how accountants perceive their AE prepared them to detect fraud and respond to ICMWs. Thus, there is a need to explore how accountants perceive the strengths and weaknesses in their AE regarding fraud and ICMWs. The study contains a comprehensive review of articles published by peer-reviewed journals, particularly in the last five years. The conceptual framework included …

Chapter: “Health Law And Ethics”, Allison K. Hoffman, I. Glenn Cohen, William M. Sage

All Faculty Scholarship

Law and ethics are both essential attributes of a high-functioning health care system and powerful explainers of why the existing system is so difficult to improve. U.S. health law is not seamless; rather, it derives from multiple sources and is based on various theories that may be in tension with one another. There are state laws and federal laws, laws setting standards and laws providing funding, laws reinforcing professional prerogatives, laws furthering social goals, and laws promoting market competition. Complying with law is important, but health professionals also should understand that the legal and ethical constraints under which health systems …

Cryptocurrency Fraud: A Look Into The Frontier Of Fraud, Stafford C. Baum

Honors College Theses

This research project was conducted to look into what sort of frauds can be committed to steal unsuspecting investors’ cryptocurrencies. The inspiration for this research came in the form of the fact that millions of dollars are lost to cryptocurrency fraud each day, and many of these frauds are successful due to the public’s naivete towards the dangers of investing in cryptocurrencies. After researching many different cryptocurrency fraud cases, the frauds could be categorized into four major categories. These categories include Ponzi schemes, fake initial coin offering schemes, pump and dump schemes as well as cryptocurrency theft.

Equifax: Anatomy Of A Security Breach, Ashton Glenn

Honors College Theses

The infamous 2017 Equifax breach not only compromised millions of citizens’ data, but the breach also left Equifax vulnerable to lawsuits that claim the company acted negligently. This thesis analyzes the events and facts behind the incident to determine the probable outcome of the main case against Equifax. A claim of a breach can come from either Equifax’s data protection or breach response. This thesis concludes the results of the case depends on the final court to determine if Equifax acted negligently with its data protection. If the case ends in the Eleventh District Court of Appeals, the court will …

Is Upcoding Anesthesia Time The Tip Of The Iceberg In Insurance Fraud?, Alberto Coustasse, Mike Frame, Avinandan Mukherjee

Management Faculty Research

The question of whether there is anomalous billing in anesthesia care is beginning to be asked by operating room managers, health care administrators, policy makers, and regulators. This question may arise when an anesthesia case seems to take more time to complete than it should. Audits, when conducted, have found that an unusual number of claims end with the digits 0 or 5 as if large numbers of cases start or end on the 5-minute mark. Such a finding serves as a red flag for that practice to undergo an audit. Questions may also be raised because the percentage of …

Investigating Information Security Policy Characteristics: Do Quality, Enforcement And Compliance Reduce Organizational Fraud?, Dennis T. Brown

Doctor of Business Administration Dissertations

Organizational fraud, a deceitful practice or willful device resorted to with intent to deprive another of his right, or in some manner to do harm or injury, is a growing global concern. While cyberattacks from the outside are more expected, the internal security threat from trusted insiders is responsible for significantly more information compromise than external threats. Information systems make life easier but are increasingly used by employees to perpetrate fraudulent activities. For example, a trusted insider employee with access to sensitive customer databases could misappropriate information and sell it to a competitor for personal gain. These type losses are …

An Analysis Of Fraud Prevention And Detection In Not-For-Profit Organizations In The State Of South Carolina, Mary Gibson

Doctoral Dissertations and Projects

This study analyzed fraud detection and prevention techniques and analyzed if there was a relationship between the techniques and the detection of fraud. The combined techniques were fraud risk assessment, fraud risk register, code of conduct, fraud assessment training, whistle-blower policy, fraud control plan, fraud control policy, and internal control review. Nonprofits are vulnerable to fraud and costly for the organizations that rely heavily on donations to provide needed services or goods to a community. Through analyzing 109 nonprofits surveyed in South Carolina, the researcher found 59 reported fraud occurrences and 86 percent were using fraud detection and prevention techniques. …

Domestic Asset Tracing And Recovery Of Hidden Assets And The Spoils Of Financial Crime, Nathan Wadlinger, Carl Pacini, Nicole Stowell, William Hopwood, Debra Sinclair

St. Mary's Law Journal

Abstract forthcoming

Beneficial Ownership: Tracking The True Owners Of Business Accounts, Angela Lintag-Ihde

Economic Crime Forensics Capstones

Bank accounts are a popular place to hide and move illegal funds. Many banks offer private banking or wealth management services, to customers with more than $1,000,000. That provides premier banking services as well as a confidential, safe, and legal haven. With these services is a heightened money laundering risk. The Federal Financial Institutions Examination Council (FFIEC) of Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual specifically states that privacy and confidentiality are important elements of private banking relationships. “Private Banking and Wealth Management services are vulnerable to money laundering schemes that include: private bankers as client advocates; powerful clients including …

A Close Look At Audit Standards And Best Practices How To Validate The Existence Of An Asset, Luis Lebron

Economic Crime Forensics Capstones

A comparative analysis will be conducted seeking to identify how to obtain sufficient evidence to determine the existence of an asset within an organization during an independent audit. The external auditor is often regarded as the “gatekeeper” of the financial markets which has a fiduciary duty to its clients. (Choy, Fields, & King, 2008) Accounting firms are required by operation of law to act in an ethical manner and have a social responsibility to protect the interest of the public. However, there exists an ongoing issue in the performance of audits by larger firms. In a recent study conducted by …