Effectiveness of Fraud Prevention and Detection Mechanisms: Accountants’ Perception

Abstract

The upsurge in fraud and the existential threat it poses to the corporate organisations has spurred the interest of many academics, accountants, auditors and investors alike. The failure of audits to detect fraud have resulted in the has called the integrity of the accountancy and the audit function profession, resulted in lawsuits and set many corporate executives on the path to find the most appropriate methods to address same. This study presents an examination fraud detection and prevention mechanisms used by organisations in Ghana, as well as the perception of accountants of their effectiveness. The research was carried out via s survey, with questionnaire administered to 99 accountants and auditors. Analysis of the results indicate that accountants in Ghanaian organisations perceive the use of appropriate oversight processes as effective in the prevention of fraud, with the highest mean value of 5.11. Delving into these processes further reveals that external audit as the most highly perceived as effective. This corresponds to the results of the type of mechanisms used, where the appropriate oversight processes again emerge as the highest in use and technological applications was the least used. Practical implications for this in Ghana points to a lag in the adopting technological applications in the prevention and detection of fraud. With the increased adoption if technology in business and the attendant risks it presents, it will be useful to explore the benefits and the costs in the bid to address emerging risks in that area.