Exploring The Causes Of Asset Misappropriation In Australian Companies – Research Proposal

Problem statement

The concept which is related to the sector of the fraud can be related to the sector of the regulators, investors and the external auditors. One of the area which can be a concern is the sector of the assist misappropriation due to the factor that it was given very less attention in audit literature which can be done in prior time framework. This mainly initiated the urge which is related to the focus of the proposal so that the different areas which is linked to the concept can be identified and explored (Nawawi et al., 2017). The current study directly purposes a framework which is related to the external auditors which can help them assess properly and respond to the risk factors which are fraud arising from the aspect of the misappropriation. The aspect which is related to the fraud can directly impact the sector which is related to the financial aspect which is linked to the concept. The organization which is taken into consideration for the approach of the research proposal is the Herniman Group. The assets control in the organization can be considered to be very much important which deals with the different prospective of the options which are dealt with the internal working of the organization.

The main focus point of the research proposal is to take into consideration different areas of fraud which is related to the assets misappropriation from the view point of the external auditors. The organization which is focused in the proposal which is the herniman group is taken due to the factor that it would be exploring different criteria which are linked dot the aspect of the misappropriation which can be seen in the sector.

Problem Statement 1: The main sector which should be taken into consideration is the security of the data which would be prevailing into the system.

Problem Statement 2: The restriction of the intruder activity within the working of the organization should be restricted.

Problem Statement 3: The total focus area which is related to the concept of the approach which is related to the different functionality which is retrieved from the implementation of the different sectors of implementation.

Problem Statement 4: Implementation of red flag in the sector of the effective tool and how would it be implemented.

Aim

The main aim of the research proposal is to taken into focus different aspects which is related to the assets misappropriation sector in dealing with the sensitive data which is indulged within the organization. The main aim is the securing of the data which is directly linked with the working of the organization.

Aim and Objective

Objective

• Deception relating to the employees.
• Embezzlement where the account had been directly manipulated or the generation of false invoice has been created.
• Taking control of the claims which is related to the false expense.
• Protection of data theft or intellectual theft off property.
• Protection of fraud which is related to the payroll where the payment lhas been fictitious and diverted (Lehmann, 2015). In this concept the restriction of the development of ‘ghost’ employees have been directly impacted.
• At the scale end, the asset misappropriation fraud can be directly limited to the cases of the isolation relating to the expenses fiddling or the lying of the employee about the qualification to get a desired job.

Research question 1: The first research question would be how the determination of whether the auditors who are external perceive the red flag across and within the different types of categories relating to asset misappropriation which is equally important.

Research question 2: The second research question can be stated that whether the auditors who are external can perceive the red flags as a tool of effective criteria of detection of the assets misappropriation. 

Research question 3: Which audit procedures would be implemented within the working which would be helpful in the sector of the detection of the factors which is related to the assets misappropriation.

Research question 4: How the risk factors in the sector of the implementation can be ignored and implemented so that mitigation aspect can be implemented within the sector of the internal working of the organization.

The concept which is related to the assets misappropriation can directly possess different types of risk factor within the working of the organization. according to the report which was made by the ACFE’s, these scheme can be considered as by far the most common form of fraud related to occupational. The figures which is given in the sector was about 83% of the cases relating to the fraud was made in this domain (Mustafa Bakri et al., 2017). The project which is taken into consideration provides directly limelight in order to mitigate the problem which is related to the assets misappropriation. The concept desire from the proposal would be the identification of the areas which are very much vulnerable and the sector of the implementing the detection and prevention measure, anti-professional fraud can directly reduce the potential impact of these threat directly to the working of the organization. The main sector which is related to the steps which is seen in the sector was the common form of employee fraud with the ACFE’s and the training which was given so that there is no sector of threats which are associated with the concept (Sadasivam et al., 2016). Security of the data can be stated to be one of the important factors which is directly linked to the competitive sector of the working of the organization and one of the important sector which would be helping in the project is the mitigation plan which would be implemented in the sector of the working with the crucial data of the organization and how the security aspects would be dwelling within the working and the processing of the information which is stored in the data.

Research Question

The asset misappropriation involves the process of the stealing of the assets of a company that is used for personal gains. Therefore, several researches have been conducted to find about the asset evaluation about the Herniman Group organization in Australia that especially deals in the development of architectural and interior design development for the people in Australia. There can be different types of assets in an architectural and interior design based company and further evaluation of these would be absolutely necessary while making a probable research over the misappropriation of the asset for Herniman Group.

The most common factor about asset misappropriation that adds to the academic knowledge is that the event occurs only when people appointed within the organization for asset management is held responsible for the stealing from the organization. Asset misappropriation may also be known as insider fraud since the fraud occurs when the third party or insider appointed employees steal the asset of the organization. The research would thus contribute to the factor that what are the reasons for which a person could possible defy their own employers and steal the assets of a company (Patterson et al., 2018). It also needs to be justified that what are the assets that are harmed by these kinds of asset misappropriation.

The study to find out the reasons and types of asset misappropriation had been assigned with the organization of Herniman Group in Australia that generally deals in architectural and interior designs. The company had been selected since it had faced the threats of asset misappropriation in recent times. Mostly, the asset misappropriation research is based on the factors of dealing with organizations which are IT based and information generating organizations, but it is also to be kept in mind that informational asset and other data that affects the asset of an architectural organization can also deal with trouble for data misappropriation. It can affect the entire organization which in turn would have an effect on the organization’s reputation altogether.

Therefore, the entire research is based on the factor of evaluating the factors which affects the asset misappropriation of the architectural organizations. These organizations are responsible for developing different kinds of architectural buildings like residential complexes, Commercial buildings, Hospitality and retirement complexes and others. Therefore, these would affect the lives of common mass in a bigger way if asset misappropriation factors arise more and more within the organization. It might also deal with the factors of fraudulent activities regarding the authority on the lands on which the buildings are erected or on which they are about to be erected.

Justification of the Project

The data collected for the research purpose has been collected by two ways. Firstly, the data would most likely be collected through the qualitative methodology to find out what are the asset management factors and the reasons how and why the asset misappropriation affects the organization in a big way (Patterson et al., 2015). This would further extend with the methodology of quantitative research where the people within the organization would be given a set of questionnaires to answer to find out what might be the potential reasons for which a person would most probably be susceptible to steal the assets from the organization they have been appointed in.

In the quantitative research, the people appointed within the organization would be presented with a set of questionnaires done for all the available employees and further this would be analyzed with the statistics as presented by the respondent employees. It would also be found that how many employees have answered all the questions and which responses were kept incomplete. The incomplete data would be discarded as per the research methodology. Measurement of asset misappropriation was adopted with some modifications from the methodologies as described by different authors. The survey questionnaires were distributed to employees with hypothetical case scenarios chosen for the completion of the project.

The analysis have found out the main reasons behind asset misappropriation of the organization of Herniman Group because there is a lack of research done on the asset misappropriation in architectural organizations. Although there were a few similar studies in the past, those studies were carried out to examine some other combinations of various organizations. The analyzed data was successful to find out the reasons behind the asset misappropriation of architecture based organizations and why the people employed within the company would most likely steal from the company they are working with in the first place.

The conceptual framework selected for this particular research had been derived from various different authors who had previously conducted researched on the asset misappropriation cases.

The hypothetical situation covers a range of situations, from those who may use valuable organization asset for personal use and what the organization already allows the employees to use as personal assets to the employees.

In the quantitative research, the people appointed within the organization would be presented with a set of questionnaires done for all the available employees and further this would be analyzed with the statistics as presented by the respondent employees. It would also be found that how many employees have answered all the questions and which responses were kept incomplete.

Potential Research Output

The dependent variable in this case is the responses of the employees and the independent variables are the incomplete data that has been not answered by the employees of the company (Timofeyev, 2016). The relationship between them exists in the analysis of data where the percentage of people uncomfortable to answer a question or ignorant about that particular phase were detected.

The data collected for the research purpose has been collected by two ways. Firstly, the data would most likely be collected through the qualitative methodology to find out what are the asset management factors and the reasons how and why the asset misappropriation affects the organization in a big way.

The elements of the study chosen for finding out the reasons and factors behind data misappropriation in Herniman Group were the employee data and the evaluation of them done on the basis of the hypothesis selected as a result.

The research result made the organization be more attentive to the interview and employment phase within the organization and in the next phase, had been more careful before employing a new person within the company (Nia & Said, 2015). Thorough background checking had been done before employing a new person.

Total budget of the project is = $70000.

References

Aiken, K. (2016). Analyzing Proactive Fraud Detection Software Tools and the Push for Quicker Solutions.

Aji, S. S. B. (2018). THE DETERMINANTS AFFECTING FRAUD TRENDS. Asia Pacific Fraud Journal, 3(1), 21-31.

Baader, G., & Krcmar, H. (2018). Reducing false positives in fraud detection: Combining the red flag approach with process mining. International Journal of Accounting Information Systems.

Coyne, J. G., Coyne, E. M., & Walker, K. B. (2016). A model to update accounting curricula for emerging technologies. Journal of Emerging Technologies in Accounting, 13(1), 161-169.

Karim, Z. A., Said, J., & Bakri, H. H. M. (2015). An exploratory study on the possibility of assets misappropriation among royal Malaysian police officials. Procedia Economics and Finance, 31, 625-631.

Kassem, R. (2014). Detecting asset misappropriation: a framework for external auditors. International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE), 10(1), 1-42.

Lehmann, C. M. (2015). Asset Misappropriation Schemes: Short Cases for Use in the Classroom. Journal of Forensic & Investigative Accounting, 7(2).

Majid, R. A., Basri, S. A., Mohamed, N., & Ahmad, K. (2016). THE COMMITMENT OF LOCAL AUTHORITIES IN BUILDING FORTRESS AGAINST MISAPPROPRIATION OF ASSETS. Malaysian Accounting Review, 15(2).

Mustafa Bakri, H. H., Mohamed, N., & Said, J. (2017). Mitigating asset misappropriation through integrity and fraud risk elements: Evidence emerging economies. Journal of Financial Crime, 24(2), 242-255.

Nawawi, A., Khalil, M. A. K. M., & Mahzan, N. (2017). BANKERS’DEMOGRAPHIC CHARACTERISTICS AND THEIR PERCEPTION ON THE RISK OF ASSET MISAPPROPRIATION: MALAYSIAN EVIDENCE. e-Academia Journal, 6(1).

Nia, E. H., & Said, J. (2015). Assessing fraud risk factors of assets misappropriation: evidences from Iranian banks. Procedia Economics and Finance, 31, 919-924.

Patterson, J. L., Goodwin, K. N., & McGarry, J. L. (2018). Understanding and Mitigating Supply Chain Fraud. Journal of Marketing Development and Competitiveness, 12(1), 70-83.

Sadasivam, G. S., Subrahmanyam, M., Himachalam, D., Pinnamaneni, B. P., & Lakshme, S. M. (2016). Corporate governance fraud detection from annual reports using big data analytics. International Journal of Big Data Intelligence, 3(1), 51-60.

Scheetz, A., Smalls, T., Wall, J., & Wilson, A. (2018). The Effect of Organization Type and Size on Fraud Reporting: Non-Profit Fraud Type Opens Opportunities.

Timofeyev, Y. (2016). Determinants of Asset Misappropriation Duration.

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