Impact of Fraud Preventive Measures on Good Corporate Governance

Ali Rehman, Fathyah Hashim

Abstract


This study seeks to understand the impact of fraud preventive measures on good corporate governance within Omani public listed companies. Fraud preventive measures are considered as fraud risk assessment and preventive role of forensic accounting. This study also proposed that preventive role of forensic accounting mediates the relationship between fraud risk assessment and good corporate governance. Unit of analysis is public listed companies in Oman. This study utilized census sampling with quantitative cross sectional study. PLS-SEM was employed for the data and result analysis. Results suggest that, fraud risk assessment does not have significant impact on good corporate governance; whereas, preventive role of forensic accounting has significant impact on good corporate governance and it is also mediating between fraud risk assessment and good corporate governance. This study can assist regulators and policy makers towards inclusion of forensic accounting as permanent and compulsory component of the codes of corporate governance. Moreover, it is highly recommended for organizations to have in-house antifraud activity which can support and enhance good corporate governance. This study identifies forensic accounting as in-house preventive measure activity which can be available within an organization and working as governance management. This preventive role of forensic accounting is not explored before especially in the Omani market.


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DOI: https://doi.org/10.5296/jcgr.v4i1.17490

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Journal of Corporate Governance Research  ISSN 1948-4658

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