The Impact of Internal Control Practices on Fraud Prevention: The Case of Lebanese Small-Medium Enterprises
##plugins.themes.bootstrap3.article.main##
When compared to large corporations, Small and Medium Enterprises (SMEs) are far more likely to suffer from employee losses and much less likely to be able to absorb these losses. Small and Medium Enterprises (SMEs) are better able to handle internal control than large corporations. It appears that the people of Lebanon view this issue with sensitivity, it is rarely brought up in casual conversation. Since internal control is the main issue facing Lebanese businesses, they would rather not address it. Only 308 of 400 responders filled out the survey, and the results were evaluated with the use of the SPSS statistical package. Findings showed that businesses in the modern era urgently require monitoring systems, as new evidence shows that monitoring frameworks affect performance evaluations. The environment in which it operates shapes a company's management mindset. The monitoring setup provides the backbone upon which further layers of internal control may be built. Consequently, the study's subjects include the organizations' cultures and working styles and the ethics and ethical beliefs of the employees who create and execute controls. Many factors interact to maintain a stable ecosystem. A subset of the executive board and representatives from each board committee have been tasked with gathering the information necessary to complete this report at the request of the board of directors.
Downloads
References
-
Alabdullah, T., Ahmed, E., & Muneerali, M. (2019). Effect of Board Size and Duality on Corporate Social Responsibility: What has Improved in Corporate Governance in Asia? Journal of Accounting Science, 3(2), 121-135.
Google Scholar
1
-
Al-Mamun, A., Yasser, Q., Rahman, M., Wickramasinghe, A., & Nathan, T. (2014). Relationship between audit committee characteristics, external auditors and economic value added of public listed firms in Malaysia. Corporate Ownership & Control, 12(1), 899-910.
Google Scholar
2
-
Amrah, R., & Obaid, M. (2019). Effective Corporate Governance Mechanisms, Ownership Structure and Financial Reporting Quality: evidence from Oman. Asia-Pacific Management Accounting Journal, 14(3), 121-154.
Google Scholar
3
-
Bala, H., Amran, N. A., & Shaari, H. (2019). Audit Committee Attributes and Cosmetic Accounting in Nigeria. Managerial Auditing Journal, 35(2), 177-206.
Google Scholar
4
-
Bryman, A. & Stephen, E. (2015). Business Research Methods. European Management Journal, 22(6), 704 – 713.
Google Scholar
5
-
Chedid, O., & Chaya, J. (2020). The role of internal auditors to implement IFRS9: Case of Lebanese SMEs. Journal of Economics and International Finance, 12(1), 6-19.
Google Scholar
6
-
Defond, M. L., Francis, J. R., & Hallman, N. J. (2018). Awareness of SEC Enforcement and Auditor Reporting Decisions. Contemporary Accounting Research, 35(1), 277-313.
Google Scholar
7
-
Dita, A. H., & Murtaqi, I. (2014). The Effect of Net Profit Margin, Price to Book Value and Debt to Equity Ratio to Stock Return in the Indonesian Consumer Goods Industry. Journal of Business and Management, 3(3), 305-315.
Google Scholar
8
-
El Khoury, R. (2018). Corporate Governance Does Affect Bank Quality of financial reports: Evidence from Lebanon. International Journal of Business & Management Science, 8(1), 83- 108.
Google Scholar
9
-
Feng, M., Li, C., & McVay, S. (2009). Internal control and management guidance. Journal of Accounting and Economics, 48(2-3), 190–209. doi:10.1016/j.jacceco.2009.09.004.
Google Scholar
10
-
Hamdan, A. (2020). Audit Committee Characteristics and Earnings Conservatism in Banking Sector: empirical research from GCC. Afro-Asian Journal of Finance and Accounting, 10(1), 1- 23.
Google Scholar
11
-
Hamdan, A. & Mushtaha, S. & AL-Sartawi, A. (2013). The Audit Committee Characteristics and Earnings Quality: Evidence from Jordan. Australasian Accounting, Business and Finance Journal, 7(4), 51-80.
Google Scholar
12
-
Hassan, S. U., and Bello, A. (2013). Firm Characteristics and Financial Reporting Quality of Listed Manufacturing Firms in Nigeria. International Journal of Accounting, Banking, and Management, 1(6), 47–63.
Google Scholar
13
-
Kipkoech, K. D., & Joel, T. (2016). Effect of Economic Factors on Tax Compliance in Kenya: A survey of limited liability companies within Eldoret municipality. Journal of International Business Research and Marketing, 1(2), 18-22.
Google Scholar
14
-
Leone, A. J. (2007). Factors related to internal control disclosure: A discussion of Ashbaugh, Collins, and Kinney (2007) and Doyle, Ge, and McVay (2007). Journal of Accounting and Economics, 44(1-2), 222-237. doi:10.1016/j.jacceco.2007.01.002.
Google Scholar
15
-
Maher, M., & Andersson, T. (2018). Corporate Governance: Effects on Firm Performance and Economic Growth, Forthcoming in Convergence and Diversity of Corporate Governance Regimes and Capital Markets, Oxford University Press, 2000.
Google Scholar
16
-
Maina, E. K., Gachunga, H., Muturi, W. & Ogutu, M. (2017). Influence of Firm Characteristics on the Impact of Disclosure and Transparency in the Performance of Companies Listed in Nairobi Securities Exchange. International Journal of Scientific Research and Management, 5(9), 6994–7007.
Google Scholar
17
-
Mangala D., & Isha (2016). Influence of Corporate Characteristics on Extent of Disclosure in Published Annual Reports in India. Amity Journal of Finance, 1(2): 22 – 34.
Google Scholar
18
-
Marcel, V. (2013). Prospects for Good Governance in Lebanon's Nascent Petroleum Sector. Strategy Reviews, 2(1), 122-124.
Google Scholar
19
-
Skaife, H. A., Veenman, D., & Wangerin, D. (2013). Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading. Journal of Accounting and Economics, 55(1), 91–110. doi:10.1016/j.jacceco.2012.07.005.
Google Scholar
20