Breaking Walls: Strengthening Learnings in Battling Occupational Fraud

Abstract

Fraudulent transactions directly affect the operations and overall performance of an organization, leading to financial losses, reputational damage, and disruptions in business processes and it encompasses a range of illicit activities, all aimed at enriching the perpetrators at the expense of the organization. Timely and relevant, occupational fraud is one of the most common issues and concerns in every nation in the exercise of occupational functions. The intention behind fraud encompasses a broader range of actions designed to provide the perpetrator with undue benefits and the impact of occupational fraud on organizations inhibit the operating activities and operating efficiency of any business establishments.  The purpose of this study is to understand the lived experiences of internal auditors on the intent of perpetrators in engaging to occupational fraud.  Following the phenomenological approach of a qualitative research, 15 internal auditors were purposively selected whom the researcher firmly believed have experienced auditing the intentions of fraudsters in the conduct of occupational fraud.  Significant statements of the participants were clustered into themes and affirmed that theft of assets, misappropriation of funds, access to resources and abuse of positions are the significant purposes of fraud activities.  The experiences of internal auditors in auditing occupational fraud supported that the intentions of perpetrators were the exploitation of assets, resources and positions and it represents a complex challenge to any organization and will compromise its financial credibility and stability.