FRAUD DEVELOPMENT AND LINKAGES WITH CORRUPTION OCCURRENCES

Abstract

This paper presents a review of the literature on connecting the relevance of fraud theory towards current and past cases that have already occurred globally. The local focus is towards the Malaysian public sector in terms of the harm that it has towards economic losses that are incurred when there are any actions of fraud. The discussion is through analysing different and varying definitions of fraud by various organisations and people. Discussion crosses throughout various perceptions of authors from different backgrounds such as accountancy, management, economics, psychology, financial crime and others. This paper first outlines the current fraud issues before relating these actions with fraud theories. These actions of fraud can be through collusion or allowed behaviours within each of the organisation. Although there are certain mechanisms in place such as internal control systems, these actions of fraud are still occurring in the current society. Findings indicate that fraud is a diverse and broad subject matter, it is always evolving and is an exciting field of research as more organisations or individuals will commit fraudulent actions although there are control mechanisms in place.