Corporate Governance to Prevent Fraud-Free-Samples for Students

Question: Discuss about the Usage of Corporate Governance to prevent fraud in UAE. Answer: Introduction The increase in the rate of fraud cases in the United Arab Emirates has been one of the reasons for the Emirati has to get concerned about. This growth in the terminologies regarding the fraud cases has been the reason of the United Arab Emirates major corporate organizations to come into action for rescuing the Emiratis. Importance of the topic The topic gains its importance because of the fact that this topic focuses on the methodologies and the steps the corporate organizations of the United Arab Emirates are taking to fight against the corruption that has been occurring in the United Arab Emirates. Justification of the topic The topic is justified, as this report will give an overview scenario of the Emiratis that are suffering from the fraud cases that are happening in the United Arab Emirates. The major concern of the project is the lack of transparency in the corporate sector of United Arab Emirates that has been acting as the cause of the frauds that has been happening in United Arab Emirates. Literature Review Corporate Governance Code According to Farhan, Obaid and Azlan, 2017, In recent years the corporate sector of Dubai has arrested the senior corporate executive for being accused of staying connected with the illegal functioning and the staying indulged in the business of the illegal financial transaction. Major cases were found to be the cases of financial land real estate organizations where the transparency of the job is at stake, which leads to the fact of facing false transaction that effect the employees and the business organization itself. Due to the fact of the introduction of the Corporate Governance, code there has been a visible reduction in the fraud cases that has been occurring in the United Arab Emirates. Again according to Halbouni, Obeid and Garbou, 2016, Small and Medium sized Enterprise has been the most benefitted scope of the field as the Small and Medium sized Enterprises do not have the facilities to have a check on the business executives with the help of the technologies. Hence after the inclusion of the Corporate Governance Code the rate of frauds have decreased to a great extent causing the growth in the revenue collection of the Small and Medium sized Enterprises. The Corporate Governance code is applicable only for the organizations that are registered in the government execution processes. On having the business registered to the corporate governance code the organization can stay protected from the frauds that has been happening in the United Arab Emirates. Detecting fraud According to El Bodan, Aga and Alrub, 2017, the techniques that help in the process of detecting frauds in the corporate sectors of the United Arab Emirates that encompasses the technological systems that utilizes the manual and automated technologies to detect the main hindrances that occurs in the processing off the detection of the tracking of the fraud cases that take places in the processing of the business. On applying constrains of the system of the automated systems a drastic reduction in the fraud cases has been detected. This detection of the fraud cases in a more efficient order as this technology reduces the verbal ability of the human errors. Due to the fact of reducing the human error in the corporate sector, the chances of reducing the fraud cases decrease with the initiation of the project. Again according to Visser and Tolhurst 2017, Enterprise Resource Planning applications that uses the platform o SAP and Oracle is widely used by the manufacturing companies of the United Arab Emirates. This application acts as the major reason of protection from the fraud cases that has been happening in the United Arab emirates. The companies do not follow the methodologies of the security processes, they instead have installed the automated version of the Enterprise Resource Planning application that has been used as a platform for serving the organization from the processing of the fraud detection with the least error execution rate. Development of Corporate governance in the public sector According to Bodolica, Spraggon and Zaid 2015, the governance committee of the Abu Dhabi was established through the Resolution no 17 of the year 2010. This committee takes into consideration the formation of the formation of the laws that are needed to be constructed in order to deal with the frauds that has been taking place in the corporate sector. The United Arab Emirates government has recruited external bodies who are experts in the field of fraud detection. This services are the main reasons for the installation of the framework of the organizational and the individual development of the United Arab Emirates public sector. Responsibilities of the board Abdullah, Percy and Stewart 2015, in their journal stated that the boards that deal with the fraud detection technology are having an important role to play for the success of the business organizations in the United Arab Emirates. The committee boards are responsible for the detection of the frauds that has been taking place in the corporate sectors of the United Arab Emirates. This committee acts strategically in order to reduce the fraud cases that has been happening in the sectors that affects transparency of the business environment. Again according to Garas, Tessema and Tee, 2017, the board of committee members must be well acknowledged with the details and the knowledge of the organizations that are registered under them. This knowledge regarding the companies under their infrastructure helps them to gain control over the fraud cases that occur. This details can also help in estimating the potential fraud case that can occur due to the weak infrastructural module of the indust ry. Having the details of the company it helps the committee can warn the organization of the problems that can occur due to the imposters that are trying to pierce the wall of defense of the organization and harm the organization. Statement of problem The statement of the task is The Usage of the Corporate Governance to prevent fraud cases in United Arab Emirates. Hypothesis question Hypothesis 1 H0: Corporate Governance is not helpful for reducing the fraud cases that has been occurring in the United Arab Emirates. H1: Corporate Governance is helpful for reducing the fraud cases that has been occurring in the United Arab Emirates. Methodology The methodology that has been used for the research of the project is Qualitative in nature. Qualitative research methodology is a broad means of research process that intends to complete the research of project using the means that are available through the literature manifested in the respective topic of research title (Mansor, 2017). The qualitative research is done by going through the sources of information that has been already generated by other personnel on whom one individual can rely on referencing for the entire process (Nobanee and Ellili, 2017). Manual survey regarding the processing of the project is not taken into consideration for the qualitative way of research methodology (Shehata, 2016). Cost Analysis Items Cost Designing of the project $32 Mapping of the project $14 Execution of the project $45 The total cost that is needed to be spent for the prosecution of the project is $91. Conclusion From the above discussion it can be concluded that Corporative Governance is capable of decreasing the fraud that has been going on in the corporative sectors of the United Arab Emirates. The Corporative governance has been acting as a body of defense for the corporative organizations. Corporative Governance has been proven to b e beneficial for the organizations as it protects the organizations from any massive fraud as well as the potential frauds that may take place. The entire responsibility of the companies that are registered under the committee are undertaken by the committee itself which leads to the betterment of the organization and saves the company from getting financially damaged. References Abdullah, W.A.W., Percy, M. and Stewart, J., 2015. Journal of Contemporary Accounting Economics. Bodolica, V., Spraggon, M. and Zaidi, S., 2015. Boundary management strategies for governing family firms: A UAE-based case study.Journal of Business Research,68(3), pp.684-693. El Bodan, M., Aga, M. and Alrub, A.A., 2017. Impact of Corporate Governance and External Audit on Earning Management. Evidence from the Financial Sector of United Arabs of Emirates (UAE).International Journal of Finance and Accounting,6(6), pp.172-178. Farhan, A., Obaid, S.N. and Azlan, H., 2017. Corporate governance effect on firms performanceevidence from the UAE.Journal of Economic and Administrative Sciences,33(1), pp.66-80. Garas, S., Tessema, A. and Tee, K., 2017. The impact of Islamic Financial Services Board Standard No. 3 on corporate governance of listed firms in Kuwait.International Journal of Disclosure and Governance,14(3), pp.251-263. Halbouni, S.S., Obeid, N. and Garbou, A., 2016. Corporate governance and information technology in fraud prevention and detection: Evidence from the UAE.Managerial Auditing Journal,31(6/7), pp.589-628. Mansor, N.H.B., 2017. Borneo Oil Berhad Market Structure: The Corporate Governance and its Impact on Firm Risk and Performance. Nobanee, H. and Ellili, N., 2017. Does Operational Risk Disclosure Quality Increase Operating Cash Flow of UAE Islamic and Conventional Banks?. Shehata, N.F., 2016. Assessment of corporate governance disclosure in the GCC countries using the UNCTAD ISAR benchmark.The Journal of Developing Areas,50(2), pp.453-460. Visser, W. and Tolhurst, N., 2017.The world guide to CSR: A country-by-country analysis of corporate sustainability and responsibility. Routledge.