Relationships among Individual Risk, Compliance Risk and Financial Report Risk: A Case Study From Government Auditors
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Published:
Jun 22, 2019
Keywords:
Risk Fraud Government Auditor
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Abstract
This research aimed to analyze (1) the relationship of risk factors and (2) the influence of risk factors on financial report risk. The data collection was carried out from 8 regional audit office no 1-15 and 461 internal and external government auditors. The instruments used were interview form and questionnaire. The data analysis was done by descriptive and inferential statistics.
This research found that: (1) the individual risk factor and the compliance risk factor had positive relationship with financial report risk; (2) the individual risk and compliance risk factors had positive influence on financial report risk. The path coefficient values were .144, .455 and .661 respectively.
Findings of this research can help establish and create guidelines for fraud preventing in both public and private organizations. In addition, it can be used for encouraging executives to realize the importance of internal control system which helps reflect the transparency and reliability of financial reporting.
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บทความวิจัย (Research Article)
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References
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Mihaela, D., & Lulian, S. (2012). Internal Control and the Impact on Corporate Governance, in Romanian Listed Companies. Journal of Eastern Europe Research in Business & Economics, 2012, 1-10.
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Naruedomkul, P., & Rodwanna, P. (2011). Employee Fraud in the Organization. Chulalongkorn Business Review, 33(130), 1-13.
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Rovinelli, R. J., & Hambleton, R. K. (1977). On the use of content specialists in the assessment of criterion-referenced test item validity. Dutch Journal of Educational Research, 2(1), 49-60.
Sandholtz, W., & Koetzle, W. (2000). Accounting for Corruption: Economic Structure, Democracy and Trade. International Studies Quarterly: Blackwell Publishing and The International Studies Association : JSTOR, 44(1), 31-50.
Shleifer, A., & Vishny, R. W. (1994). Politicians and firms. The Quarterly Journal of Economics, 109(4), 995-1025.
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Srivithaya, S. (2015). The Rule of Law and the Reconciliation by Buddhist Ways in Thai Society. Journal of MCU Peace Studies. 3(2), 20-29.
Van Roy, E. (1970). On the Theory of Corruption. Economic Development and Cultural Change, 19(1), 86-110.
Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33(1), 101-125.
Werner, S.B. (1983). New Direction in The Study of Administrative Corruption, Public Administration Review 43(2), 441-456.
William, R. J. (2000). Explaining Corruption. The Politics of Corruption 1 Cheltenham: Edward Elgar Publishing.
Wright, R. A. (2013). The internal auditor’s guide to risk assessment. Altamonte Springs, Florida: The Institute for Internal Auditors Research Foundation.
Akintoye, I. R., Akingunola, R. O., & Oseni, J. E. (2011). Ineffective Corporate Governance : Challenges of Internal Audit Function. International Journal of Research in Commerce & Management, 2(3), 16-22.
Alam, M. S. (1989). Anatomy of corruption: An approach to the political economy of underdevelopment. American Journal of Economics and sociology, 48(4), 441-456.
Albrecht, W.S., Albrecht, C. C, Albrecht C.O., & Zimbelman, M. F. (2009). Fraud Examination (3rd ed). Canada: South Western Cengage Learning.
Anantanasuwong, D. (2014). Fraud and Corruption Anatomy. In Sirilaksana Khoman et al. (Ed.), Corruption and Removal Mechanism. 7-28. Public Policy Studies Institute, Chiang Mai University.
Association of Certified Fraud Examiners (ACFE). (2012). Report to the nations on occupational fraud and abuse, 2012 Global fraud study. Texas: Austin.
Badara, M. A. S. (2012). The Role of Internal Auditors in Ensuring Effective Financial Control at Local Government Level: The Case of Alkaleri L.G.A., Bauchi State. Research Journal of Financial Accounting, 3(4), 57-65.
Bandura, A. (2002). Selective Moral Disengagement in the Exercise of Moral Agency. Journal of Moral Education, 31(2), 101-119.
Bartlett, N. E., Tonkin, E. R., & Williams, A. (2004). Audit Planning for the Detection of Fraud. Milton Queensland: John Wiley & Sons, Inc.
Bayley, D. H. (1966). The Effects Corruption in a Developing Nation. Western Political Quarterly, 19(4), 719-732.
Best , J. W., & James V. K. (1986). Research in Education. (5th ed). New Jersey: Prentice Hall Inc.
Black, K. (2006). Business statistics for contemporary decision making. (4th ed). New York, NY: John Wiley & Sons, Inc.
Bowles, R. (1999). Corruption in Encyclopedia of Law and Economics, VIII. Criminal Law, Economics of Crime and Law Enforcement. General Editors: Boudewijn Bouckaert and Gerrit De Geest. Publishers: Edward Elgar and the University of Ghent. Retrieved June 1, 2019 from https://encyclo.findlaw.com/tablebib.html.
Clinton, S. B., Pinello, A. S., & Skaife, H. A. (2014). The implications of ineffective internal control and sox 404 reporting for financial analysts. Journal of Accounting and Public Policy, 33(4), 303-327.
Cressey, D. R. (1953). Other People’s Money. New Jersey: Patterson Smith.
Cronbach, L. J. (1970). Essentials of Psychological Test. (5th ed). New York: Harper Collins.
Daniela, P., & Attila, T. (2013). Internal audit versus internal control and coaching. Procedia Economics and Finance, 6(13), 694-702.
Department of Local Administration (DLA). (2018). Data Auditing from Internal Auditor 2016-2017. Retrieved June 1, 2019 from https://www.dla.go.th/servlet/TemplateOrganizeServlet? organize=internal_audit.
Doody, H. (2009). Fraud risk management: A guide to good practice. London, England: Chartered Institute of Management Accountants.
Glaser, B. G., & Strauss, A. L. (1967). The discovery of grounded theory strategies for qualitative research. Illinois: Aldine Publishing.
Goudie, A. W. & Stasavage, D. (1997). Corruption: The Issues. Organization for Economic Cooperation and Development (OECD). Technical, 122.
Habib, A., & Hossain, M. (2013). CEO/CFO Characteristics and financial reporting quality. A Review Research in Accounting Regulation, 25(1), 88-100.
Heidenheimer, A. J., Arnold, J., Johnston, M., & Levine, V. T. (1989). Political Corruption: A Handbook. New Brunswick and Oxford : Transaction Publishers.
Hesse-Biber, S. N. (2010). Mixed Methods Research: Merging Theory Huntington, S. P. (1970). Political Corruption : Concepts & Contexts: Modernization and Corruption (15). U.S.A.: Library of Congress.
Isaksen, J. (2005). The budget Process and Corruption. Bergen, Norway: U4 Anti-Corruption Resource Centre, chr. michelsen institute.
Khan, M. (1996). The efficiency Implications of Corruption. Journal of International Development, 8(5), 683–696.
Lasritad, K., Muenthaisong, K., & Janjarasjit, S. (2015). Effects of Accounting PracticeTransparency on Financial Reporting Quality of Municipality in the Northeast Thailand. Journal of Humanities and Social Sciences Mahasarakham University, 34(4), 252-260.
Leff, N. H., (1964). Economic Development Through Bureaucratic Corruption. The American Behavior Scientist, November, 8(2), 8-14.
Likert, R. (1932). A Technique for the measurement of Attitude. Arch: Psychol.
Maesschalck, J. (2004). The Impact of New Public Management Reforms on Public Servants’ Ethics : Towards A Theory. Public Administration, 82(2), 465-489.
Margit, T. (2005). The Development of Stable Party Support: Electoral Dynamics in Post-Communist Europe. American Journal of Political Science, 49(2), 283-298.
Maslow, A. H. (1970). Motivation And Personality. (2nd ed). New York: Harper & Row Publishers, Inc.
McMullan, M. (1961). The Politics of Corruption–Explaining Corruption. UK: Edward Elgar Published.
Michael, J. (1995). The Search for Definitions: The Vitality of Politics and the Issue of Corruption. USA: Colgate University.
Mihaela, D., & Lulian, S. (2012). Internal Control and the Impact on Corporate Governance, in Romanian Listed Companies. Journal of Eastern Europe Research in Business & Economics, 2012, 1-10.
Moore, C. (2008). Moral Disengagement in Processes of Organizational Corruption. Journal of Business Ethics,
80(1), 129-139.
Naruedomkul, P., & Rodwanna, P. (2011). Employee Fraud in the Organization. Chulalongkorn Business Review, 33(130), 1-13.
Nunnally, J. C., & I. H. Bernstein. (1994). Psychometric Theory. New York.
Nye, J. S. (1967). Corruption and Political Development: A Cost- Benefit Analysis. American Political Science Review, 61(2), 417-427.
Office of the State Audit (Thailand). (2018). Data Personnel Information System. Retrieved May 13, 2019 from https://www.audit.go.th/th/ Organization Chart. With Practice. New York: Guilford.
__________. (2017). Operations Auditing of Government Organization 2012–2017 Years . Retrieved May 13, 2019 from https://www.audit.go.th/sites/default/files/files/reportaudit/pdf.
Rittenberg, L. (2013). COSO Internal control-integrated framework: turning principles into positive action. Altamonte Springs, Florida: The Institute for Internal Auditors Research Foundation.
Rose-Ackermann, S. (1999). Corruption and Government: Causes, Consequences and Reform. New York: Cambridge University Press, 91-110.
Rovinelli, R. J., & Hambleton, R. K. (1977). On the use of content specialists in the assessment of criterion-referenced test item validity. Dutch Journal of Educational Research, 2(1), 49-60.
Sandholtz, W., & Koetzle, W. (2000). Accounting for Corruption: Economic Structure, Democracy and Trade. International Studies Quarterly: Blackwell Publishing and The International Studies Association : JSTOR, 44(1), 31-50.
Shleifer, A., & Vishny, R. W. (1994). Politicians and firms. The Quarterly Journal of Economics, 109(4), 995-1025.
Singleton, T. W., Singleton, A., Bologna, J. & Lindquist, R. (2006). Fraud auditing and forensic accounting. (3rd ed). New York: John Wiley & Sons, Inc.
Srivithaya, S. (2015). The Rule of Law and the Reconciliation by Buddhist Ways in Thai Society. Journal of MCU Peace Studies. 3(2), 20-29.
Van Roy, E. (1970). On the Theory of Corruption. Economic Development and Cultural Change, 19(1), 86-110.
Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33(1), 101-125.
Werner, S.B. (1983). New Direction in The Study of Administrative Corruption, Public Administration Review 43(2), 441-456.
William, R. J. (2000). Explaining Corruption. The Politics of Corruption 1 Cheltenham: Edward Elgar Publishing.
Wright, R. A. (2013). The internal auditor’s guide to risk assessment. Altamonte Springs, Florida: The Institute for Internal Auditors Research Foundation.