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Presentation Outlines
 Research Topic
 Problem Statement
 Research Questions
 Research Objectives
 Research Paradigm




                        1
Research Topic
Topic:
Frauds and Work Ethics Awareness in Malaysian Public
Sectors
Frauds – use of deception with the intention of
obtaining an advantage, avoiding an obligation or
causing loss of another party.
 Corruption
 Revenue/Assets Improperly Gained
 Misappropriation of Assets
 Other Misconducts
                                                       2
Research Topic
Work Ethics
-Discipline of dealing with what is good and bad with
moral duty and obligation

 Principles
 Codes of Ethic
 Implementations




                                                        3
Research Topic
Public Sectors – A political organization set up with
the power to direct, regulate and control a country.
 Political Party
 Legislator
 Law Enforcer
 Other government officers




                                                        4
Problem Statement (1)
 While there is a systematic campaign in Malaysia to
  promote ethics and integrity as a tool for quality
  public services, fraud cases in Malaysia continued
  to rises.
 Majority of fraud is perpetrated internally
 Despite heavy reliance being placed on internal
  controls to prevent and detect fraud, poor and
  inadequate internal controls have failed to prevent
  and detect fraud
 Employees are not adequately trained to detect
  early warning fraud signs (“red flags”)
                                                        5
Problem Statement (2)
 Greed/lifestyle and personal financial pressure were
  cited as the two most common motivations for fraud;
 Poor internal controls followed by collusion between
  employees and third party and poor ethical practices
  were the three most important factors contributing to
  major frauds;
 Despite the increasing risk and complexity of fraud
  in the current environment, many companies have
  not reviewed the adequacy and sufficiency fraud of
  its prevention strategies.


                                                         6
Problem Statement (3)
 Overall most fraud was detected internally, with
  internal controls being the most common method
  followed by notification by employees, internal audit
  review, notification by customer/supplier and
  whistleblower
 While fraud in corporate arena continued to be
  discusses in literature, it seems fraud cases within
  the public sector have not been well represented in
  the literature.



                                                          7
1) What is the level of awareness with regard to
   frauds and ethics in public sector?
2) Does the level of awareness in public sector
   contribute to the number of fraud cases in public
   sector?
3) Does fraud and ethic awareness in public sector
   varies with respect to their level of rank in the
   system?




                                                       8
Research Objectives
1) To measure the level of fraud and ethics
     awareness among public servants.
2)   To understand and recognize the nature of fraud in
     public sectors.
3)   To understand and recognize the impact of fraud in
     public sector.
4)   To identify current issues and problems pertaining
     to fraud and ethics in public sector
5)   To study the correlation between fraud awareness
     and current control in public sector.
                                                          9
Research Paradigm
Research     Research       Research Methods   Examples
Paradigms    Approach
Positivism   Quantitative   Surveys and        -Relationship between
                            correlational      awareness of fraud and
                                               the integrity level of
                                               relevant
                                               departments/ministry in
                                               public sector
                                               -Attitude of public servant
                                               towards fraud according to
                                               their level of education.




                                                                         10

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Research Topic, Problem Statement, Questions & Objectives

  • 1. Presentation Outlines  Research Topic  Problem Statement  Research Questions  Research Objectives  Research Paradigm 1
  • 2. Research Topic Topic: Frauds and Work Ethics Awareness in Malaysian Public Sectors Frauds – use of deception with the intention of obtaining an advantage, avoiding an obligation or causing loss of another party.  Corruption  Revenue/Assets Improperly Gained  Misappropriation of Assets  Other Misconducts 2
  • 3. Research Topic Work Ethics -Discipline of dealing with what is good and bad with moral duty and obligation  Principles  Codes of Ethic  Implementations 3
  • 4. Research Topic Public Sectors – A political organization set up with the power to direct, regulate and control a country.  Political Party  Legislator  Law Enforcer  Other government officers 4
  • 5. Problem Statement (1)  While there is a systematic campaign in Malaysia to promote ethics and integrity as a tool for quality public services, fraud cases in Malaysia continued to rises.  Majority of fraud is perpetrated internally  Despite heavy reliance being placed on internal controls to prevent and detect fraud, poor and inadequate internal controls have failed to prevent and detect fraud  Employees are not adequately trained to detect early warning fraud signs (“red flags”) 5
  • 6. Problem Statement (2)  Greed/lifestyle and personal financial pressure were cited as the two most common motivations for fraud;  Poor internal controls followed by collusion between employees and third party and poor ethical practices were the three most important factors contributing to major frauds;  Despite the increasing risk and complexity of fraud in the current environment, many companies have not reviewed the adequacy and sufficiency fraud of its prevention strategies. 6
  • 7. Problem Statement (3)  Overall most fraud was detected internally, with internal controls being the most common method followed by notification by employees, internal audit review, notification by customer/supplier and whistleblower  While fraud in corporate arena continued to be discusses in literature, it seems fraud cases within the public sector have not been well represented in the literature. 7
  • 8. 1) What is the level of awareness with regard to frauds and ethics in public sector? 2) Does the level of awareness in public sector contribute to the number of fraud cases in public sector? 3) Does fraud and ethic awareness in public sector varies with respect to their level of rank in the system? 8
  • 9. Research Objectives 1) To measure the level of fraud and ethics awareness among public servants. 2) To understand and recognize the nature of fraud in public sectors. 3) To understand and recognize the impact of fraud in public sector. 4) To identify current issues and problems pertaining to fraud and ethics in public sector 5) To study the correlation between fraud awareness and current control in public sector. 9
  • 10. Research Paradigm Research Research Research Methods Examples Paradigms Approach Positivism Quantitative Surveys and -Relationship between correlational awareness of fraud and the integrity level of relevant departments/ministry in public sector -Attitude of public servant towards fraud according to their level of education. 10