The Effect of Implementing Sustainable Development Goals and Effectiveness of Internal Controls Towards Fraud Prevention

Irfan Hadeef Dr Adam, Nur Diana, Dwiyani Sudaryanti

Abstract


This research aims to determine the influence of implementing sustainable development goals towards fraud prevention through the effectiveness of internal controls. Using company “A” in Brunei as a case study, it engages qualitative descriptive methods through semi-structured interviews with key informants. SDG principles emphasize transparency, inclusivity, and sustainability and can encourage ethical practices which in turn can create a climate for discouraging fraud. Robust internal controls—fostering accountability formats, training structures, and flexibility—also make organizations more resilient. This paper contributes to an understanding of how ethical values and technical safeguards interact to enhance fraud prevention in SMEs in developing countries. This study concludes that the application of SDG principles and the existence of strong internal controls have a positive impact on fraud prevention. The combination of their functions brings greater effectiveness than when used independently, particularly manifestation of SME as Company “A”.

Keywords: Sustainable development goals, internal controls, fraud prevention, ethical governance, Brunei, SMEs


Full Text:

PDF

References


Association of Certified Fraud Examiners. (2020). Report to the Nations: Global Study on Occupational Fraud and Abuse.

Braun, V., & Clarke, V. (2006). "Using Thematic Analysis in Psychology." Qualitative Research in Psychology, 3(2), 77-101.

Bhat, A. (2023). The Role of Ethical Leadership in Enhancing Fraud Prevention.

COSO. (2013). Internal Control—Integrated Framework. Committee of Sponsoring Organizations of the Treadway Commission.

Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.). Sage Publications.

Cressey, D. R. (1953). Other People's Money: A Study in the Social Psychology of Embezzlement. Glencoe, IL: Free Press.

Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.

Jensen, M. C., & Meckling, W. H. (1976). "Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure." Journal of Financial Economics, 3(4), 305-360.

KPMG. (2021). Fraud Risk Management: Developing a Strategy for Prevention.

Mendes de Oliveira, D. K. (2022). Training and Development as a Tool for Effective Fraud Prevention.

Natalie Low. (2024). Psychological Impact of Fraud on Society.

Ochoa Hernandez, R., Simpson, A., & Gill, G. (2021). Fraud and Its Broader Impacts on Social Cohesion and Environmental Sustainability.

Organisation for Economic Co-operation and Development (OECD). (2020). The Role of Personal Integrity in Fraud Prevention.

Saunders, M., Lewis, P., & Thornhill, A. (2019). Research Methods for Business Students (8th ed.). Pearson.

Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th ed.). Wiley.

Shleifer, A., & Vishny, R. W. (1997). "A Survey of Corporate Governance." The Journal of Finance, 52(2), 737-783.

Treviño, L. K., Weaver, G. R., & Reynolds, S. J. (2006). "Behavioral Ethics in Organizations: A Review." Journal of Management, 32(6), 951-990.

United Nations. (2015). Transforming Our World: The 2030 Agenda for Sustainable Development.

United Nations Office on Drugs and Crime (UNODC). (2021). The Role of Sustainable Development in Fraud Prevention.

Wells, J. T. (2017). Corporate Fraud Handbook: Prevention and Detection (5th ed.). Wiley.

World Bank Publication. (2021). Fraud Prevention and Internal Control in Modern Organizations.

World Economic Forum. (2020). Strengthening Institutions to Combat Fraud and Corruption.


Refbacks

  • There are currently no refbacks.


e_Jurnal Ilmiah Riset Akuntansi is indexed by:

e_Jurnal Ilmiah Riset Akuntansi is licensed under a Creative Commons Attribution 4.0 International License