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An Exploratory Study of Internal Control and Fraud Prevention Measures in SMEs
Jaya Kumar Shanmugam, Mohd Hassan Che Haat, Azwadi Ali
Pages - 90 - 99     |    Revised - 15-03-2012     |    Published - 16-04-2012
Volume - 3   Issue - 2    |    Publication Date - April 2012  Table of Contents
Internal Control, Fraud, Small and Medium Enterprises
Small business and entrepreneurship has emerged as an important area of research over the past 40 years. This paper revolves around the issues of the internal controls, fraud and it prevention measures on SMEs performance. The level of fraud incidence as reported by owners is still at a very low level and the overall cost incurred is still within expectation. However, there is a question of whether the low reported rate of fraud is due to adequate preventive actions currently employed by owners, or whether the owners are reluctant to reveal the truth in order to portray their efficiency and effectiveness in running their businesses. This conceptual paper attempts to analyze relevant literature on internal control, fraud, current trends on fraud and business crime prevention measure. Based on the literature, a future research could be suggested in the context of Malaysia. It is hoped that future research on this aspect will uncover the relationship between the effectiveness of internal control and fraud on SMEs and to gauge the adequacy of fraud prevention measure taken by SMEs owners in Malaysia. It is expected that effective internal control and the presence of appropriate fraud preventive measures will help to improve SMEs performance. KEYWORDS: Internal Control; Fraud; Small and Medium Enterprises
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Mr. Jaya Kumar Shanmugam
Universiti Malaysia Terengganu - Malaysia
Mr. Mohd Hassan Che Haat
- Malaysia
Mr. Azwadi Ali
- Malaysia