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- Title
REVIEW OF U.S. COUNTY GOVERNMENT INTERNAL CONTROL WEAKNENSSES AND RESULTING MISAPPROPRIATIONS: 2017-2022.
- Authors
Rheault, Chelsea; Boyer-Davis, Stacy; Lare, Lardja
- Abstract
In a time where financial fraud is rapidly increasing and technological advances open the backdoor and even the front door for more occurrences, advanced internal control mechanisms need to be implemented and monitored. Local governments attempt to reduce fraud risk by performing annual risk assessments, reviews, and audits. These evaluations and protocols help determine the likelihood of a loss occurring. Studies have determined that local governments often have one of the following four risk assessment violations: absence of risk analysis, non-effective risk analysis, risk management that is not linked to the risks, and failure to record asset obligations in the bylaws. Research has not been able to conclude which activities specifically link to each of these violations directly, but it has been determined that when risk assessments are not effectively employed and evaluated, significant deficiencies in the control environment of the workplace exist. The Association of Certified Fraud Examiners suggested that governmental agencies have the highest median loss as a result of fraud in the United States. This narrative literature review examines the research surrounding local government internal control weaknesses that derive from mismanagement, lack of oversight, and unethical behaviors.
- Subjects
UNITED States; INTERNAL auditing; FRAUD; LOCAL government; RISK assessment
- Publication
Journal of Business & Accounting, 2023, Vol 16, Issue 1, p17
- ISSN
1944-2874
- Publication type
Article