Title: Assessment of internal control systems to curb corporate fraud - evidence from Brazil

Authors: Joshua Onome Imoniana; Eduardo Costa De Feitas; Luiz Carlos Jacob Perera

Addresses: University of São Paulo, Prof. Luciano Gualberto Ave 908, FEA 3 Building Room 238, São Paulo – SP, 05508-010, Brazil ' Presbyterian Mackenzie University, Center of Applied Social Sciences CCSA, Rua da Consolação 930, São Paulo – SP, 01302-907, Brazil ' Presbyterian Mackenzie University, Center of Applied Social Sciences CCSA, Rua da Consolação 930, São Paulo – SP, 01302-907, Brazil

Abstract: Prior studies concentrated on the misuse of accounting information systems and did not explore the effectiveness of internal control systems with a view to curb corporate frauds. This study abridged the aforementioned gap. The study rallied around the question of which procedures are deemed appropriate or not in the internal control procedures to mitigate the risks of fraud in organisations. We carried out an interpretative and critical analysis on the issue. Based on the aforementioned, we conclude that corruption and misappropriation of assets are frauds combated more efficiently and effectively with the complainants channel, mechanisms of internal control and rules of compliance; while frauds in financial statements usually linked to higher echelon are more appropriately mapped and traced by external auditors.

Keywords: internal control systems; ICSs; corporate fraud; auditing; compliance rules; Brazil; corruption; asset misappropriation; complainants channels; financial statements.

DOI: 10.1504/AJAAF.2016.077592

African Journal of Accounting, Auditing and Finance, 2016 Vol.5 No.1, pp.1 - 24

Received: 23 Nov 2015
Accepted: 21 Jan 2016
Published online: 06 Jul 2016 *

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