A PATH MODEL EXPLAINING THE FRAUD AND ERROR IN ENTERPRISES: AN INTERNAL PERSPECTIVE

Abstract

In the VUCA world, continuous fluctuations have made frauds and errors
more sophisticated and harder to detect. They are considered serious problems
to solve and are of interest to many parties including businesses, organizations,
and government agencies. This study was conducted to predict factors’ impact
on errors and fraud in Vietnamese enterprises from an internal perspective.
Data collected by survey method from 170 administrators and accountants are
analyzed by SmartPLS software. The research results show that the culture of
honesty and assessing internal control processes have significant influences on
the extent of errors and fraud. These findings have suggested a number of
governance implications for businesses and auditing firms as well as
government authorities in predicting corporate fraud in order to develop
control solutions.