##plugins.themes.bootstrap3.article.main##

Establishing reliable internal control systems in Lebanon is a challenge for businesses looking to reduce their vulnerability to fraud. The purpose of this research was to determine whether or not internal control measures were successful in reducing fraud in Lebanon’s commercial sector. The study polls 308 businesses to learn more about control methods such as division of responsibilities, audit frequency, and ethics education. The results illuminate the present status of internal controls in Lebanon, illuminating the country’s successes and failures in its efforts to prevent fraud. With the information from this research, businesses may improve their fraud prevention tactics and safeguard their assets in the Lebanese market.

 

Keywords: Internal Control, Monitoring, Controlling Activities, Controlling Environment, Information & Communication

Downloads

Download data is not yet available.

References

  1. Abdullatif, M., & Al-Rahahleh, A. S. (2020). Applying a new audit regulation: Reporting key audit matters in Jordan. International Journal of Auditing, 24(2), 268–291.
     Google Scholar
  2. Agustina, F., Nurkholis, N., & Rusydi, M. (2021). Auditors’ professional skepticism and fraud detection. International Journal of Research in Business and Social Science, 10(4), 275–287.
     Google Scholar
  3. 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.
     Google Scholar
  4. Alayli, S. (2023a). The impact of capital budgeting practices on financial performance of Lebanese banks. The EUrASEANs: Journal on Global Socio-economic Dynamics, 1(38), 29-39.
     Google Scholar
  5. Alayli, S. (2023b). The impact of digital banking on customer satisfaction in the Lebanese banking industry: The mediating effect of user experience. International Journal of Information Management Sciences, 7(1), 1-22.
     Google Scholar
  6. Alayli, S. (2023c). The mediating effect of metaverse technology on the relationship between virtual economy and launching clothing retailers: The case Of Dubai. Journal of Positive Psychology and Wellbeing, 7(2) 1707-1717.
     Google Scholar
  7. Alberti, C. T., Bedard, J. C., Bik, O., & Vanstraelen, A. (2022). Audit firm culture: Recent developments and trends in the literature. European Accounting Review, 31(1), 59–109.
     Google Scholar
  8. Baker, C. R., Cohanier, B., & Leo, N. J. (2017). Breakdowns in internal controls in bank trading information systems: The case of the fraud at Société Générale. International Journal of Accounting Information Systems, 26, 20–31.
     Google Scholar
  9. Berdiyeva, O., Islam, M. U., & Saeedi, M. (2021). Artificial intelligence in accounting and finance: Meta-analysis. NUST Business Review, 3(1), 56–79.
     Google Scholar
  10. Castro, P. R., Amaral, J. V., & Guerreiro, R. (2019). Adherence to the compliance program of Brazil’s anti-corruption law and internal controls implementation. Revista Contabilidade e Financas, 30(80), 86–201.
     Google Scholar
  11. Dinh, T., & Schultze, W. (2022). Accounting for R&D on the income statement? Evidence on non-discretionary vs. discretionary R&D capitalization under IFRS in Germany. Journal of International Accounting, Auditing and Taxation, 46, 1-20.
     Google Scholar
  12. Eaton, T. V, & Korach, S. (2016). A criminological profile of white-collar crime. Journal of Applied Business Research, 32(1), 129–142.
     Google Scholar
  13. Fulop, M. T., Tiron-Tudor, A., & Cordos, G. S. (2018). Audit education role in decreasing the expectation gap. Journal of Education for Business, 94(5), 306–313.
     Google Scholar
  14. Fung, S., Pham, V. T., & Raman, K. K. (2022). Client corruption culture and audit quality: the conditioning effect of the competitive position of the incumbent auditor. Review of Quantitative Finance and Accounting, 59(3), 1133–1171.
     Google Scholar
  15. Grayston, C. (2022). Audit down but not out. International Journal of Auditing, 26(1), 8–11.
     Google Scholar
  16. Harasheh, M., & Provasi, R. (2022). A need for assurance: Do internal control systems integrate environmental, social, and governance factors? Corporate Social Responsibility and Environmental Management, 30(1), 384-401.
     Google Scholar
  17. Harber, M., & Marx, B. (2020). Auditor independence and professional scepticism in South Africa: Is regulatory reform needed? South African Journal of Economic and Management Sciences, 23(1), 1-12.
     Google Scholar
  18. Hamza, I., & Shatila, K. (2022). The Effect of Gamification on Employee Behavior: The Mediating Effects of Culture and Engagement. The Journal of Asian Finance, Economics and Business (JAFEB), 9(5), 213-224.
     Google Scholar
  19. Hay, D., Shires, K., & Van Dyk, D. (2020). Auditing in the time of COVID – the impact of COVID-19 on auditing in New Zealand and subsequent reforms. Pacific Accounting Review, 33(2), 179–188.
     Google Scholar
  20. Jalloul, S., Awwad, G., & Shatila, K. (2022). The impact of accounting information systems on bank performance: The case of Lebanon. Management and Economics Review, 7(3), 405-422.
     Google Scholar
  21. Kartini, K. (2015). Accountability mediation effect on internal control effect against fraud prevention (A study in the government of West Sulawesi, Indonesia). International Journal of Economic Research, 12(1), 195–204.
     Google Scholar
  22. Lowe, D. J., Pope, K. R., & Samuels, J. A. (2015). An examination of financial sub-certification and timing of fraud discovery on employee whistleblowing reporting intentions. Journal of Business Ethics, 131(4), 757–772.
     Google Scholar
  23. Meiryani, M., Fitriani, N. A., & Habib, M. M. (2019). Can information technology and good corporate governance be used by internal control for fraud prevention? International Journal of Recent Technology and Engineering, 8(3), 5556–5567.
     Google Scholar
  24. Millet-Reyes, B., & Uddin, N. (2021). Board structure changes after accounting fraud: the case of Schneider Electric. CASE Journal, 17(3), 406–418.
     Google Scholar
  25. Musa, N. (2019). A conceptual framework of IT security governance and internal controls. Jurnal Teknologi Maklumat dan Multimedia Asia-Pasifik, 7(2), 63-77.
     Google Scholar
  26. Nyakarimi, S. N., Kariuki, S. N., & Kariuki, P. W. (2020). Application of internal control system in fraud prevention in banking sector. International Journal of Scientific and Technology Research, 9(3), 6524–6536.
     Google Scholar
  27. Nyambuya, K., Yasseen, Y., & Soni, F. (2021). Barriers to the adoption of independent reviews by nonpublic interest entities in South Africa. African Journal of Business and Economic Research, 16(2), 185–206.
     Google Scholar
  28. Oradi, J., Asiaei, K., & Rezaee, Z. (2020). CEO financial background and internal control weaknesses. Corporate Governance: An International Review, 28(2), 119–140.
     Google Scholar
  29. Ozili, P. K., & Outa, E. R. (2018). Bank income smoothing in South Africa: role of ownership, IFRS and economic fluctuation. International Journal of Emerging Markets, 13(5), 1372–1394. https://doi.org/10.1108/IJoEM-09-2017-0342
     Google Scholar
  30. Ozili, P. K., & Outa, E. R. (2019). Bank earnings smoothing during mandatory IFRS adoption in Nigeria. African Journal of Economic and Management Studies, 10(1), 32–47.
     Google Scholar
  31. Pilonato, S. (2022). Accounting can support a “sustainable” corruption network: a case analysis. Journal of Public Budgeting, Accounting and Financial Management, 34(1), 120–138.
     Google Scholar
  32. Pizzi, S., Venturelli, A., Variale, M., & Macario, G. P. (2021). Assessing the impacts of digital transformation on internal auditing: A bibliometric analysis. Technology in Society, 67(101738).
     Google Scholar
  33. Prodanova, N. A., Trofimova, L. B., Bashina, O. E., Kachkova, O. E., Ilienkova, N. D., & Polyanskaya, T. A. (2019). Approaches for obtaining audit evidence at fair value measurement. International Journal of Economics and Business Administration, 7(3), 279–292.
     Google Scholar
  34. Rametse, N., Makara, T., & Santhariah, A. (2020). An investigation of the attitudes of business taxpayers towards the Malaysian goods and services tax and its potential managerial benefits. Journal of the Australasian Tax Teachers Association, 15, 115–141.
     Google Scholar
  35. Rashid, M. A., Al-Mamun, A., Roudaki, H., & Yasser, Q. R. (2022). An overview of corporate fraud and its prevention approach. Australasian Accounting, Business and Finance Journal, 16(1), 101–118.
     Google Scholar
  36. Rendon, R. G., & Rendon, J. M. (2015). Auditability in public procurement: An analysis of internal controls and fraud vulnerability. International Journal of Procurement Management, 8(6), 710–730.
     Google Scholar
  37. Sarhan, A. A., Ntim, C. G., & Al-Najjar, B. (2019). Antecedents of audit quality in MENA countries: The effect of firm- and country-level governance quality. Journal of International Accounting, Auditing and Taxation, 35, 85–107.
     Google Scholar
  38. Shatila, K., & Alozian, M. (2019). Factors affecting employee turnover: the case of Lebanese retail companies. Journal of Human Resources, 7(2), 5-13.
     Google Scholar
  39. Solichin, M., Sanusi, Z. M., Johari, R. J., Gunarsih, T., & Shafie, N. A. (2022). Analysis of audit competencies and internal control on detecting potential fraud occurrences. Universal Journal of Accounting and Finance, 10(1), 171–180.
     Google Scholar
  40. Sulaiman, N. A., Jaffar, N., & Yahya, Y. (2022). Audit rotation and strength of corporate governance and its effects on audit quality. Management and Accounting Review, 21(3), 71–89.
     Google Scholar
  41. Ushakov, D., & Shatila, K. (2022). The impact of engagement on turnover intention: The case of United Arab Emirates banks. The EUrASEANs: Journal on Global Socio-economic Dynamics, 5(36), 94-105.
     Google Scholar
  42. Ushakov, D., Dudukalov, E., Mironenko, E., & Shatila, K. (2022). Big data analytics in smart cities’ transportation infrastructure modernization. Transportation Research Procedia, 63, 2385-2391.
     Google Scholar
  43. Ushakov, D., Dudukalov, E., Shmatko, L., & Shatila, K. (2022). Artificial Intelligence as a factor of public transportations system development. Transportation Research Procedia, 63, 2401-2408.
     Google Scholar
  44. White, S., Bailey, S., & Asenova, D. (2020). Blurred lines: exploring internal auditor involvement in the local authority risk management function. Public Money and Management, 40(2), 102–112.
     Google Scholar