<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In a globalised scenario, the topic of an enormous increase of malfeasance in the local governments, posing catastrophic threats which come from vicious bureaucratic apparatus, becomes a global phenomenon. This current study uses case study material on the risk management control system specially the control environment in Indonesia local governments to extend existing theory by developing a contingency theory for the public sector. Within local government, contingency theory has emerged as a lens for exploring the links between public sector initiatives to improve risk mitigation and the structure of the control system. The case illustrates that the discretion of control environment - the encouragement of a local government’s control environment - is considered as a springboard for fraud deterrence and might be the loopholes in the government control systems.</p></abstract>

In a globalised scenario, the topic of an enormous increase of malfeasance in the local governments, posing catastrophic threats which come from vicious bureaucratic apparatus, becomes a global phenomenon. This current study uses case study material on the risk management control system specially the control environment in Indonesia local governments to extend existing theory by developing a contingency theory for the public sector. Within local government, contingency theory has emerged as a lens for exploring the links between public sector initiatives to improve risk mitigation and the structure of the control system. The case illustrates that the discretion of control environment - the encouragement of a local government’s control environment - is considered as a springboard for fraud deterrence and might be the loopholes in the government control systems.

The efficacy of control environment as fraud deterrence in local government

Management & Marketing

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"The efficacy of control environment as fraud deterrence in local government"}

In a globalised scenario, the topic of an enormous increase of malfeasance in the local governments, posing catastrophic threats which come from vicious...

The efficacy of control environment as fraud deterrence in local government

Published Online: Jan 11, 2018

Page range: 591 - 613

DOI: https://doi.org/10.1515/mmcks-2017-0035

Keywords
malfeasance, control environment, contingency theory

© 2018

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The efficacy of control environment as fraud deterrence in local government

Published Online: Jan 11, 2018

Page range: 591 - 613

DOI: https://doi.org/10.1515/mmcks-2017-0035

Keywordsmalfeasance, control environment, contingency theory

© 2018

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
malfeasance, control environment, contingency theory