1. bookVolume 11 (2020): Issue 1 (March 2020)
Journal Details
First Published
19 Sep 2012
Publication timeframe
2 times per year
access type Open Access

Impact of Fraud Risk Assessment on Good Corporate Governance: Case of Public Listed Companies in Oman

Published Online: 13 Apr 2020
Page range: 16 - 30
Received: 09 Nov 2018
Accepted: 26 Jan 2019
Journal Details
First Published
19 Sep 2012
Publication timeframe
2 times per year

Background: Fraud risk assessment as a control mechanism is becoming necessary due to continuous and never-ending fraudulent activities. Frauds arise regardless of the existence of codes for corporate governance and available control activities such as those of internal and external audit units. It is high time for the corporate governance functions such as Audit and Risk Committees and Senior Management to identify the controls, which can assist in achieving good corporate governance and at the same time provide satisfaction to the shareholders.


JEL Classification

1. Abbot, L., Park, Y., Parker, S. (2000), “The effects of audit committee activity and independence on corporate fraud“, Managerial Finance, Vol. 26 No. 11, pp. 55-68.Search in Google Scholar

2. Abdel-Meguid, A., Samaha, K., Dahawy, K. (2014), “Preliminary evidence on the relationship between corporate governance attributes and audit committee functionality in Egypt: beyond checking the box“, Corporate Governance, Vol. 14 No. 2, pp. 197-210.Search in Google Scholar

3. Abdullahi, R., Mansor, N. (2015), “Forensic Accounting and Fraud Risk Factors: The Influence of Fraud Diamond Theory“, European Journal of Business and Management. Vol. 7 No. 28, pp. 30-37.Search in Google Scholar

4. Abdullatif, M. (2013), “Fraud Risk Factors and Audit Programme Modifications: Evidence from Jordan“, Australasian Accounting, Business and Finance Journal. Vol. 7 No. 1, pp. 59-77.Search in Google Scholar

5. ACFE (2016), “ Report to the nations on occupational fraud and abuse: 2016 global fraud study “, Association of Certified Fraud Examiners, Chicago.Search in Google Scholar

6. Akkeren, J. V., Buckby, S. (2017), “Perceptions on the Causes of Individual and Fraudulent Co-offending: Views of Forensic Accountants“, Journal of Business Ethics, Vol. 146 No. 2, pp. 383-404.Search in Google Scholar

7. Al-Moataz, E. S. (2003), “The Effectiveness of Audit Committees within Saudi Corporations: An Empirical Investigation“, Ph.D. Thesis, Business School Loughborough University, London, UK. Available at https://dspace.lboro.ac.uk/dspace-jspui/bitstream/2134/6972/3/15417.pdf (12 November 2018)Search in Google Scholar

8. Anderson, R. (2011), “Risk management and corporate governance“, Organization for Economic Co-Operation and Development (OECD).Search in Google Scholar

9. Bentley-Goode, K. A., Newton, N. J., Thompson, A. M. (2017), “Business Strategy, Internal Control over Financial Reporting, and Audit Reporting Quality“, Auditing: A Journal Of Practice & Theory Vol. 36 No. 4, pp. 49–69.Search in Google Scholar

10. Bhasin, M. L. (2013), “Corporate Governance and Forensic Accountant: an Exploratory Study“, Journal of Accounting – Business Management, Vol. 20 No. 2, pp. 35-49.Search in Google Scholar

11. Brennan, N. M., McGrath, M. (2007), “Financial statement fraud: Some lessons from US and European case studies“, Australian Accounting Review, Vol. 17 No. 2, pp. 49–61.Search in Google Scholar

12. Bruisnsma, C., Wemmenhove, P. (2009), “Tone at the top is vital! A Delphi study”, ISACA Journal, Vol. 3, pp. 1–4.Search in Google Scholar

13. CMA (2016), “Oman Code of Corporate Governance for Public Listed Companies“, Capital Market Authority, Muscat.Search in Google Scholar

14. COSO (2016), “Enterprise Risk Management: Aligning risk with strategy performance“, Committee of Sponsoring Organizations of the Treadway Commissions (COSO).Search in Google Scholar

15. Efiong, E. J. (2012), “An exploration of forensic accounting education and practice for fraud prevention and detection in Nigeria“, International Journal of Business and Management, Vol. 7 No 4, pp. 26-34.Search in Google Scholar

16. García, L. S., Barbadillo, E. R., & Pérez, (2010), “Audit committee and internal audit and the quality of earnings: empirical evidence from Spanish companies“, Journal of Management Governance, Vol. 16 No. 2, pp. 305-331.Search in Google Scholar

17. Gatzert, N., Schmit, J. T., Kolb, A. (2016), “Assessing the Risks of Insuring Reputation Risk“, Journal of Risk Insurance, Vol. 83 No. 3, pp. 641-679.Search in Google Scholar

18. Hair, J. F., Hult, G. T., Ringle, C. M., Sarstedt, M. (2017), “A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM)”, Sage, New York.Search in Google Scholar

19. Halbouni, S. S., Nada, O., Abeer, G. (2016), “Corporate governance and information technology in fraud prevention and detection: Evidence from the UAE“, Managerial Auditing Journal Vol. 31 No. 6/7, pp. 589-628.Search in Google Scholar

20. Hashim, F., Mahadi, N. D., Amran, A. (2015), “Corporate Governance and Sustainability Practices in Islamic Financial Institutions: The Role of Country of Origin“, Procedia Economics and Finance Vol. 31, pp. 36 – 43Search in Google Scholar

21. Henseler, J., Ringle, C. M., Sarstedt, M. (2015), “A new criterion for assessing discriminant validity in variance-based structural equation modeling”, Journal of the academy of marketing science, Vol. 43 No. 1, pp.115-135.Search in Google Scholar

22. Hoitash, R., Hoitash, U. (2009), “The role of audit committees in managing relationships with external auditors after SOX: Evidence from the USA“, Managerial Auditing Journal, Vol. 24 No. 4, pp. 368-397.Search in Google Scholar

23. Homayara, L. A., Md. Jahangir, A., Saeed, A. J., Sawlat, H. Z. (2008), “A Conceptual Review on Corporate Governance and its Effect on Firm’s Performance: Bangladesh Perspective“, AIUB Bus Econ Working Paper Series AIUB-BUS-ECON-2008-10, American International University-Bangladesh (AIUB), Office of Research and Publications (ORP), revised Mar 2008.Search in Google Scholar

24. Keasey, K., Thomson, S., Right, M. (2012), “Corporate governance, economic, management, and financial issues“, Oxford press University, Oxford.Search in Google Scholar

25. Korine, H., Gomez, Y. P. (2014), “Strong managers, strong owners: Corporate Governance and Strategy“, Cambridge University Press, LondonSearch in Google Scholar

26. KPMG (2014, May), “Fraud risk management Developing a strategy for prevention, detection, and response“ Available at https://assets.kpmg/content/dam/kpmg/pdf/2014/05/fraud-risk-management-strategy-prevention-detection-response-O-201405.pdf (15 July 2018)Search in Google Scholar

27. Krishnan, J., Lee, J. E. (2009), “Audit committee financial expertise, litigation risk, and corporate governance”, Auditing: A Journal of Practice & Theory, Vol. 28 No. 1, pp. 241-261.Search in Google Scholar

28. Laux, C., Laux, V. (2009), “Board committees, CEO compensation, and earnings management“, The Accounting Review, Vol. 84 No. 3, pp. 869-891.Search in Google Scholar

29. Law, P. (2011), “Corporate governance and no fraud occurrence in organizations: Hong Kong evidence“, Managerial Auditing Journal, Vol. 26, pp. No. 6, pp. 501-518.Search in Google Scholar

30. Mohd-Sanusi, Z., Rameli, M. N., Omar, N., Ozawa, M. (2015), “Governance mechanisms in the Malaysian Banking Sector: Mitigation of Fraud Occurrence“, Asian Journal of Criminology, Vol. 10 No. 3, pp. 231-249.Search in Google Scholar

31. Mukrashi, F. A. (2016), “Oman’s National Gas Company fires CEO over bribery“ Available at http://gulfnews.com/news/gulf/oman/oman-s-national-gas-company-fires-ceo-over-bribery-1.1674858 (19 August 20181)Search in Google Scholar

32. Nwagbara, U. (2012), “ En/countering corrupt leadership and poor corporate governance in the Nigerian banking sector: Towards a model of ethical leadership “, Indian Journal of Corporate Governance, Vol. 5 No. 2, pp. 133-148.Search in Google Scholar

33. Oso, L., Semiu, B. (2012), “The concept and practice of corporate governance in Nigeria: The need for public relations and effective corporate communication”, Journal of Communication, Vol. 3 No. 1, pp. 1-16.Search in Google Scholar

34. Patelli, L., Pedrini, M. (2015), “Is tone at the top associated with financial reporting aggressiveness“, Journal of Business Ethics, Vol. 126 No. 1, pp. 3–19.Search in Google Scholar

35. Pintea, M. O., Fulop, M. T. (2015), “Corporate Governance – Key Factor to Enhance Performance. Managerial Challenges of the Contemporary Society”. Vol. 8 No. 2, 116-120.Search in Google Scholar

36. Ramayah, T., Cheah, J., Chuah, F., Ting, H., Mumtaz A., M. (2018), Partial Least Squares Structural Equation Modeling (PLS-SEM) Using SmartPLS 3.0: An Updated Guide and Practical Guide to Statistical Analysis. Pearson, Kuala Lumpur.Search in Google Scholar

37. Rehman, A., Hashim, F. (2018), “Literature Review: Preventive Role of Forensic Accounting and Corporate Governance Maturity“, Journal of Governance and Integrity (JGI), pp. 68-93.Search in Google Scholar

38. Rehman, A., Hashim, F. (2019), “Impact of Mature Corporate Governance on Detective Role of Forensic Accounting: Case of Public Listed Companies in Oman” in FGIC 2nd Conference on Governance and Integrity 2019, KnE Social Sciences, pp. 637–665.Search in Google Scholar

39. Reuter, S. (2013), “Oman’s Bank Muscat hit by $39 mln prepaid card fraud”. Available at https://www.reuters.com/article/oman-bankmuscat-fraud/omans-bank-muscat-hit-by-39-mln-prepaid-card-fraud-idUSL6N0BQ1C720130226 (25 December 2018)Search in Google Scholar

40. Reuters, S. (2011), “Oman’s Renaissance uncovers fraud at Topaz unit, H1 profit falls”. Available at https://www.reuters.com/article/us-renaissance-results/omans-renaissance-uncovers-fraud-at-topaz-unit-h1-profit-falls-idUSTRE77E0NW20110815 (25 December 2018)Search in Google Scholar

41. Reuters, S. (2014), “Oman court jails businessman to 15 years over bribes”. Available at https://www.reuters.com/article/us-oman-corruption-sentences/oman-court-jails-businessman-to-15-years-over-bribes-idUSBREA280I020140309 (25 December 2018)Search in Google Scholar

42. Rezaee, Z., Lo. D., Ha, M., Suen, A. (2016), “Forensic Accounting Education and Practice: Insights from China“, Journal of Forensic Investigative Accounting, Vol. 8 No. 1, pp. 23-34.Search in Google Scholar

43. Saud, S., Marchand, N. (2012), “Contribution of internal audit in the achievement of corporate goals” A Case of Sweden and Pakistan“, (Master’s Thesis; Business Administration Karlstad Business School. Sweden) available at http://www.diva-portal.org/smash/get/diva2:537276/fulltext01 (19 October 2018).Search in Google Scholar

44. Shir, L. N. (2013), “Role Effectiveness of Audit Committees’ Governance Characteristics: Impacts on Internal and External Auditing of Listed Companies“ (Ph.D. Thesis, School of Accounting College of Business RMIT University, Australia), Available at https://researchbank.rmit.edu.au/view/rmit:160435 (25 June 2018)Search in Google Scholar

45. Singleton, T., Singleton, A. (2010), “Fraud Auditing and Forensic Accounting 4th Edition”, John Wiley Sons, Chicago.Search in Google Scholar

46. Siregar, S. V., Tenoyo, B. (2015), “Fraud awareness survey of the private sector in Indonesia“, Journal of Financial Crimes, Vol. 22 No. 3, pp.329-346.Search in Google Scholar

47. Stewart, J., Munro, L. (2007), “The Impact of Audit Committee Existence and Audit Committee Meeting Frequency on the External Audit: Perceptions of Australian Auditors“, International Journal of Auditing Vol. 11, pp. 51–69.Search in Google Scholar

48. Vona L.W. (2010), “The Fraud Audit: Responding to the Risk of Fraud in Core Business Systems“, John Wiley and Sons, New York.Search in Google Scholar

49. Wilbanks, R. M., Hermanson, D. R., Vineeta, D. S. (2017), “Audit Committee Oversight of Fraud Risk: The Role of Social Ties, Professional Ties, and Governance Characteristics“, American Accounting Association: Accounting Horizons Vol. 31 No. 3, pp. 21–38.Search in Google Scholar

50. Wilkinson, N. (2014, March), “A framework for organizational governance maturity: an internal audit perspective“, South Africa: (Ph.D. Thesis, University of Pretoria. South Africa), Available at https://repository.up.ac.za/bitstream/handle/2263/43563/Wilkinson_Framework_2014.pdf;sequence=4 (18 March 2018)Search in Google Scholar

51. Wilkinson, N., Plant, K. (2012), “A framework for the development of an organizational governance maturity model: a tool for internal auditors“, Southern African Journal of Accountability and Auditing Research, Vol. 13 No. 1, pp. 19-31.Search in Google Scholar

52. World Bank, (2016), “Worldwide Governance Indicators“ Available at www.databank.worldbank.org:http://databank.worldbank.org/data/reports.aspx?source=worldwide-governance-indicators (26 March 2018)Search in Google Scholar

53. Yeboah, E. B., Kwafoa, P., Amoah, G. B. (2017), “Security of Staff in Academic Libraries: A Study of Sam Jonah Library, University of Cape Coast“, Journal of Applied Information Science, Vol. 05 No. 1, pp. 155-165.Search in Google Scholar

54. Zakaria, N. B. (2012), “Corporate Governance And The Relationship Between Default Risk and The Earnings Response Coefficient“ (Ph.D. thesis Victoria University of Wellington, New Zealand): available at http://researcharchive.vuw.ac.nz/bitstream/handle/10063/2106/thesis.pdf?sequence=1 (15 February 2018)Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo