The Impact of Internal Control Practices on Fraud Prevention: The Case of Lebanese Small-Medium Enterprises
##plugins.themes.bootstrap3.article.sidebar##
PDF
Submitted Sep 8, 2022
Published Oct 10, 2022
Published Oct 10, 2022
DOI
Abstract viewed = 231 times
Issue
Section
Articles
##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.
Keywords: Controlling Environment, Controlling Activities, Monitoring, Information and Communication, Risk Assessment, Fraud Prevention.
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.
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.
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.
Bala, H., Amran, N. A., & Shaari, H. (2019). Audit Committee Attributes and Cosmetic Accounting in Nigeria. Managerial Auditing Journal, 35(2), 177-206.
Bryman, A. & Stephen, E. (2015). Business Research Methods. European Management Journal, 22(6), 704 – 713.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Marcel, V. (2013). Prospects for Good Governance in Lebanon's Nascent Petroleum Sector. Strategy Reviews, 2(1), 122-124.
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.
Downloads
Download data is not yet available.
##plugins.themes.bootstrap3.article.details##
How to Cite
Alayli, S. (2022). The Impact of Internal Control Practices on Fraud Prevention: The Case of Lebanese Small-Medium Enterprises. European Journal of Business and Management Research, 7(5), 141–147. https://doi.org/10.24018/ejbmr.2022.7.5.1671
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
