IDEAS home Printed from https://ideas.repec.org/a/aml/intbrm/v3y2012i2p90-99.html
   My bibliography  Save this article

An Exploratory Study of Internal Control and Fraud Prevention Measures in SMEs

Author

Listed:
  • Jaya Kumar Shanmugam

    (Universiti Malaysia Terengganu, Malaysia)

  • Mohd Hassan Che Haat

    (, Malaysia)

  • Azwadi Ali

    (, Malaysia)

Abstract

Small business and entrepreneurship has emerged as an important area of research over the past 40 years. This paper revolves around the issues of the internal controls, fraud and it prevention measures on SMEs performance. The level of fraud incidence as reported by owners is still at a very low level and the overall cost incurred is still within expectation. However, there is a question of whether the low reported rate of fraud is due to adequate preventive actions currently employed by owners, or whether the owners are reluctant to reveal the truth in order to portray their efficiency and effectiveness in running their businesses. This conceptual paper attempts to analyze relevant literature on internal control, fraud, current trends on fraud and business crime prevention measure. Based on the literature, a future research could be suggested in the context of Malaysia. It is hoped that future research on this aspect will uncover the relationship between the effectiveness of internal control and fraud on SMEs and to gauge the adequacy of fraud prevention measure taken by SMEs owners in Malaysia. It is expected that effective internal control and the presence of appropriate fraud preventive measures will help to improve SMEs performance.

Suggested Citation

  • Jaya Kumar Shanmugam & Mohd Hassan Che Haat & Azwadi Ali, 2012. "An Exploratory Study of Internal Control and Fraud Prevention Measures in SMEs," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 3(2), pages 90-99, April.
    • Handle: RePEc:aml:intbrm:v:3:y:2012:i:2:p:90-99
    as

    Download full text from publisher

    File URL: https://www.cscjournals.org/manuscript/Journals/IJBRM/Volume3/Issue2/IJBRM-75.pdf
    Download Restriction: no
    File URL: https://www.cscjournals.org/library/manuscriptinfo.php?mc=IJBRM-75
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Coutorie, Larry E., 1995. "The future of high-technology crime: A parallel Delphi study," Journal of Criminal Justice, Elsevier, vol. 23(1), pages 13-27.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tuan Zainun Tuan Mat & Danny Shahmizi Teh Ismawi & Erlane K Ghani, 2019. "Do Perceived Pressure and Perceived Opportunity Influence Employees¡¯ Intention to Commit Fraud?," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 132-143, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Akartuna, Eray Arda & Johnson, Shane D. & Thornton, Amy, 2022. "Preventing the money laundering and terrorist financing risks of emerging technologies: An international policy Delphi study," Technological Forecasting and Social Change, Elsevier, vol. 179(C).

    More about this item

    Keywords

    Internal Control; Fraud; Small and Medium Enterprises;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aml:intbrm:v:3:y:2012:i:2:p:90-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nabeel Tahir (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.