INVESTIGATING ACCOUNTANT’S PERCEPTION ON PUBLIC SERVANTS’ BUDGET-SLACK FRAUD BEHAVIOUR IN DEVELOPING ECONOMIES USING FRAUD TRIANGLE ANALYSIS

Salem Udoh () and Boris Popesko ()
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Salem Udoh: PhD Candidate and Management Accounting Lecturer FCA, Tomas Bata University, Faculty of Management and Economics; Mostni 5139,760 01, Zlin, Czech Republic
Boris Popesko: Professor Ph.D., Tomas Bata University; Faculty of Management and Economics; Mostni 5139,760 01, Zlin, Czech Republic

REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, 2024, vol. 2024, issue 42, 115-130

Abstract: This quantitative study investigates the perceptions of accountants in explaining budget-related fraud behaviour of public servants in developing economies using the elements of the fraud triangle theory. Fraud triangle elements constitute the Pressure, opportunity and rationalization dimensions that cause fraud. This study seeks to extend this theory to budget slack fraud investigation in the public sector to fill an existing gap. It therefore aims to test if indications of fraud based on the concept of fraud triangle can be used to detect public servants’ budget slack fraud behaviour in developing countries like The Gambia. The population in this study constituted all accountants in the public and private sector. Convenience sampling technique was used to collect primary data via an online questionnaire instrument containing Likert-style questions with 51% response rate. The Likert-style questions drawn on the concept of fraud triangle analysis helped to realize the study’s objectives. The result showed that components of Fraud Triangle analysis, Pressure, Opportunity and Rationalization variables have significant combined linear/predictive effect on BSFB, with the greatest influence coming from Opportunity variable. Moreover, the predictors in a multiple regression model generated 73% variance/prediction strength in budget-related fraud behaviour of which 27% are accounted for by residuals. These findings align with literature and have implication for policy and further research.

Keywords: Budget Slack Fraud; Fraud Triangle Theory; Accountants; public servants (search for similar items in EconPapers)
JEL-codes: H83 M42 M48 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:rom:rampas:v:2024:y:2024:i:42:p:115-130

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