AAA Spark Meeting of Regions

Fraud in Nonprofit Organizations: Effectiveness of Internal Control Mechanisms in Reducing Fraud Duration

• In Event: Historical Instances of Fraud and Financial Impropriety

Abstract

I test whether specific internal control mechanisms suggested in prior literature are effective in reducing the duration of fraud in nonprofit organizations. Nonprofit organizations exist to benefit the public and perform charitable functions. When they are victims of fraud, the fraud affects more than just the organization. Its mission can be compromised. Understanding how to reduce losses by reducing the length of time fraud persists in nonprofit organizations is important to nonprofit organization management and boards, the public, academics, and fraud examiners.

Author

• Angela Woodland, Montana State University - Bozeman