Factors Affecting Non-Government Organisationsâ€™ Financial Statement Fraud in South Africa: New Fraud Combined Theory Approach

Jean Damascene Mvunabandi; Bomi Cyril Nomlala

doi:10.14414/jebav.v25i2.3092

Authors

Jean Damascene Mvunabandi University of KwaZulu-Natal
Bomi Cyril Nomlala University of KwaZulu-Natal

DOI:

https://doi.org/10.14414/jebav.v25i2.3092

Keywords:

Non-Government Organisations, Financial statement fraud, Fraud red flags, Fraud Risk Indicators, Forensic Auditors.

Abstract

This article aims to obtain empirical evidence about the relationship between New Fraud Combined Theory with non-government organizationsâ€™ financial statement fraud in South Africa. The population of this thesis research comprised 87 staff from 30 chosen Non-Government organizations (NGOs). The sample size of 87 was calculated using Raosft Software. A convenience sampling technique was used to select the studyâ€™s respondents. This article adopted quantitative and descriptive survey research. A Likert questionnaire was designed and used as the research instrument for generating data from respondents. Robustness analysis was entirely performed using descriptive statistics. The result of this research indicated that all variables have a significant association with fraudulent financial statements among NGOs in the eThekwini region, South Africa. This article contributes to the body of knowledge: the significant association between auditing and financial statement fraud mitigation accentuates the new fraud combined theory which belies that effective corporate governance will significantly curb financial statement fraud among NGOs in the eThekwini region and beyond.

Author Biographies

Jean Damascene Mvunabandi, University of KwaZulu-Natal

Jean Damascene Mvunabandi recently completed a Ph.D. in accounting/auditing sciences in the school of Accounting, Economics and Finance at University of KwaZulu Natal, and is excited to focus specifically on forensic auditing and accounting, he has over 8 years of accounting and business education experience. Lecturer at Durban University of Technology. He is passionate about imparting knowledge to students. He is a member of the following professional bodies: Certified Fraud Examiners (Associate), Certified Business Advisor, He is business advisor at Hand in Hand Southern Africa, he has a robust experience in managing and coordinating projects at reputable non-government organisations (FHI 360, HIH SA, E3 initiative) and microfinance institutions in Rwanda. Data analyst using widely accepted statistical tools and software such SPSS, Analysis of movement structures (AMOS) and NVivo. Particular interest in academia, he has supervision experience of accounting postgrad students, he has demonstrable ability to facilitate online teaching. He is also passionate about research and teaching, and the following are his interest areas:AccountingAuditing and Forensic auditing,Financial Mathematics,Business management, Business environment and business risk management,Financial Decision Analysis,Theoretical and field study of accounting,Theoretical and field study of financial accountingTheoretical and field study of forensic auditing techniques,Theoretical and field study of fraud risk managementTheoretical and field study financial performance. Â Â Academic QualificationsPhD in Accounting sciences (UKZN)Master of Commerce in Accounting Sciences (UKZN)Â Bachelor of Commerce with honoursÂ Â in Accounting Sciences (NUR)Matric Certificate in Accountancy (Kageyo Secondary School) Professional Certificates Professional certificates in Digital forensics concepts, Foundations of Teaching for Learning: Being a Teacher, Project Management, managing project Risks and Changes, Initiating and Planning Projects, Fundraising and Development foundations, and Budgeting and Scheduling ProjectsÂ Â

Bomi Cyril Nomlala, University of KwaZulu-Natal

Dr. Bomi Nomlala is a Senior Lecturer in the School of Accounting, Economics, and Finance at the University of KwaZulu-Natal (UKZN). He received his Ph.D. in Accounting in 2019. He has over fifteen years of auditing/forensic education and public sector experience. He teaches Auditing at the 2nd and 3rd levels. Before joining UKZN in 2007, he worked for Auditor-General South Africa as a trainee up until a manager position. Heâ€™s passionate about imparting knowledge to students on Accounting, Fraud, and auditing. He is a member of the following professional bodies SAICA, ACFE, and ISACA. He is also passionate about research, and the following are his interest areasAudit Education.Fraud Awareness and preventionPublic sector accounting.IT Audit.Financial Capability.Financial Literacy.Forensic Accounting and Financial Knowledge.Â

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