Fraud Detection and Prevention Methods in Mauritius: A Study on Accounting Practitioners’ Perceptions
Introduction
A recent study conducted by researchers Subadar Agathee and Mootooganagen Ramen has shed light on the methods used by accounting practitioners in Mauritius to detect and prevent fraud. The study, published in the Revista Internacional Administracion & Finanzas, aimed to assess the effectiveness of various fraud detection and prevention methods employed by junior auditors, senior auditors, and professional accountants.
Methodology
The researchers designed a questionnaire that was sent to 10 reputed companies, including Big 4 firms, and received responses from 120 accounting practitioners. The study analyzed the frequency and effectiveness of various fraud detection and prevention methods used by accounting practitioners in Mauritius.
Most Frequently Used Methods
The results revealed that the most frequently used methods to combat fraud were:
- Bank reconciliation
- Staff rotation
- Cash reviews
- Password protection
Findings
In contrast to previous studies, the researchers found that the methods with the highest mean effectiveness ratings were also the ones most frequently used by accounting practitioners in Mauritius. The study highlights the least and most frequent fraud detection and prevention methods used in the country, providing valuable insights for organizations looking to strengthen their internal controls and prevent fraudulent activities.
Recommendations
According to the study’s findings, organizations should adopt an integrated strategy to combat potential risks rather than dealing with each issue separately. Additionally, they should weigh the significant intangible benefits of combating fraud against direct costs and ensure that employees are aware of the consequences of any malpractice.
Significance
The study is significant not only because it provides insights into the perceptions of fraud detection methods in Mauritius but also because it adds to the existing literature on the topic. As the first formal study conducted in the Mauritian context, it highlights the importance of adopting effective fraud detection and prevention methods to mitigate risks and prevent financial losses.
Keywords
- Forensic Accounting
- Internal Auditing
- Fraud
- Mauritius
JEL Classification
M40, M49