Mitigating Fraud in Accounting: A Comprehensive Literature Review of Prevention Strategies
DOI:
https://doi.org/10.1229/tecempresarialjournal.v18i2.235Keywords:
Fraud prevention, Accounting, Ethical conduct, Cognitive Biases.Abstract
This paper presents a comprehensive literature review on fraud prevention strategies in accounting. Seven key strategies, including education, corporate governance, religiosity, cognitive biases, moral philosophy, whistleblowing, and technology, were analyzed. The review emphasizes the significance of ethics education, strong leadership, and religiosity in promoting ethical conduct. Addressing cognitive biases and leveraging auditors' ethical idealism can enhance fraud prevention efforts. In conclusion, a multifaceted approach to fraud prevention is crucial for organizations to effectively combat fraudulent activities in accounting. By incorporating diverse prevention strategies and considering their theoretical underpinnings, organizations can foster a culture of integrity, accountability, and transparency. The findings from this literature review provide valuable insights for academics, practitioners, and policymakers to develop robust fraud prevention mechanisms and protect organizational interests.
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