A framework for internal fraud risk reduction at it integrating business processes : the IFR² framework

Fraud is a million dollar business and it is increasing every year. Both internal and external fraud present a substantial cost to our economy worldwide. A review of the academic literature learns that the academic community only addresses external fraud and how to detect this type of fraud. Little or no effort to our knowledge has been put in investigating how to prevent ánd to detect internal fraud, which we call ‘internal fraud risk reduction’. Taking together the urge for research in internal fraud and the lack of it in academic literature, research to reduce internal fraud risk is pivotal. Only after having a framework in which to implement empirical research, this topic can further be investigated. In this paper we present the IFR² framework, deduced from both the academic literature and from current business practices, where the core of this framework suggests to use a data mining approach.El fraude es un negocio millonario y está aumentando cada año. Tanto el fraude interno como el externo presentan un coste considerable para nuestra economía en todo el mundo. Este artículo sobre la literatura académica enseña que la comunidad académica solo se dirige al fraude externo, y cómo se detecta este tipo de fraude. Que sepamos, se ha hecho poco o ningún esfuerzo en investigar cómo evitar y detectar el fraude interno, al que llamamos ‘reducción del riesgo de fraude interno’. Teniendo en cuenta la urgencia de investigar el fraude interno, y la ausencia de ello en la literatura académica, la investigación para reducir este tipo de fraude es esencial. Este tema puede ser aún investigado con mayor profundidad solo después de tener un marco, en el que implementar investigación empírica. En este artículo, presentamos el marco IFR, deducido tanto de la literatura académica como de las prácticas empresariales actuales, donde el foco del marco sugiere usar un enfoque de extracción de datos

On-line financial reporting: an analysis of the Dutch listed firms

This paper reports on the extent to which the Internet is used for financial reporting in the Netherlands. Results show that corporate reporting via the Internet seems to be an established fact. Most large companies have websites, and a growing percentage of those companies are placing business reporting information, including financial data, on their sites. However, the situation is not as positive as it seems. Further results show that Dutch corporations vary not only in their stage of Web-utilization, but also in the depth or volume of released information (divided into financial statement information and other investor related information). Besides, there is considerable variability in the manner in which the data are delivered, as shown by the scores of timeliness, technology and user support. In fact, the total weighted scores ranged between 11% and 74%. Concentrating on two sectors, it is found that the reporting behaviour within a single sector seems to be more or less homogeneous. This makes us conclude that companies are (partly) inspired by their competitors, and that they wish to keep pace with rivals