The Major Importance of Ethics is a Fundamental Component of Society - Research Proposal Example

Running Head: Research Proposal Research Proposal [Institute’s Research Proposal Introduction Since human evolution, one can witness major importance of ethics that is a fundamental component for the existence of values in the society. It is an observation that besides other areas, ethics play a crucial role in business, and especially financial sectors, and analysis of the material has indicated that nowadays, people are beginning to overlook ethics in financial sectors that has enforced the establishment of organizations that may identify, monitor, and prevent factors that cause fraud and risks. Additionally, experts (O’Gara, pp. 29-33, 2004) have pointed out a quick increase in the number of frauds in accounting departments and organizations due to various causes. Due to such rapid increment, anti-fraud and risk management organizations are putting efforts to prevent the unethical practice that has now become a usual notion in financial sectors. Although risk management focuses more on insurance organizations; however, occupational fraud is one of the other significant aspect that has become a major concern for the risk management specialists. For such purpose, the proposed research will endeavor to recognize and analyze different aspects of occupational frauds while focusing on the factors in financial computing that enable individuals to commit frauds. Statement of the Problem In this regard, the proposed research will focus on the following purpose statement: “To identify risks and issues associated with existence of occupational frauds in the mechanism of financial computing in business organizations.” Aims and Objectives Besides identification of thesis statement, it is very imperative for a researcher to set aims and objectives that play a significant role in planning an efficient research study while evading any chances of exploitation of resources. In this regard, research anticipates that findings of the proposed study will offer a critical analysis of different factors that create an environment that facilitates individuals in carrying out fraud activities in the organizations. Moreover, the proposed research will attempt to identify the role of technology, and specifically, financial computing in the provision of opportunities of occupational frauds in the financial sector. For such purpose, the researcher will put efforts to identify flaws in the financial sector that will enable the creation of preventive measures for such flaws. Thus, it is anticipation that completion of the proposed research will provide a comprehensive opportunities to the experts associated with risk management in analyzing situations from a broad perspective, rather than a limited perspective of typical occupational fraud. Furthermore, one of the other significant objectives of this research is to acquire realistic and ground-reality findings that will be beneficial and applicable for future researchers. Literature Review It is very important to acquire a fundamental understanding about the identified thesis statement, in order to carry out research in a critical and efficient manner. For such purpose, brief analysis of the material associated with risk management, and especially occupational frauds indicated its different types. However, before its types, different experts (Wells, pp. 42-47, 2007) have attempted to define occupational fraud in their perspective, but some terms were common in every definition. In brief, occupational fraud is an unethical act that involves exploitation of available organizational resources in an unlawful manner that provides personal benefits to an individual or an entity. In order to understand occupational fraud comprehensively, experts (Koletar, pp. 19-27, 2003) have categorized it in different types that focuses on different aspects of the occupational fraud. For instance, one of its types focuses primarily on theft of assets of an organization where experts have indicated that cash has been the most common form of asset that has been the objective of occupational fraudsters globally. In specific, more than eighty-five percent of occupational frauds involve theft of cash assets of an organization. Besides this common type of occupational fraud, it is an observation (Salinger, pp. 59-66, 2005) that a number of executives carry out fraud activities on their influences and authorities in the organization that comes in the category of management fraud. Some other types of occupation fraud include customer fraud, vendor fraud, investment fraud, etc. However, due to frequent and widespread presence of first type of occupational fraud, the researcher decided to focus on it primarily. Studies (Cipriani & Guarino, 2006) related to risk management and specifically fraud and risk management indicated that globalization has resulted in opening of new doors in the financial sector globally, and implementation of technology in financial accounting is one of the greatest achievements of the sector. At the same time, such achievement has become the greatest threat due to major flaws and risks associated with methods of financial computing in accounting (UCL, 2009). During the present decades, many studies (Ketz, pp. 89-93, 2006) have focused on the identification and prevention of fraud cases in accounting departments of the organizations, and they have clarified that although implementation of technology has provided enormous benefits and flexibility to the organizations; however, it has resulted in huge vulnerability against fraud risks. Besides flaws in the financial computing that is a major cause of occupational frauds, experts (Beenen & Pinto, pp. 275-289, 2009) have recognized three specific circumstances that enable an individual to involve in fraud cases. In particular, findings of this study specified that majority of organizations are now confronting adverse effects of economic recession on global level that have resulted in rapid increment in financial burden on CFOs that is the foremost and most common factor of money embezzlement that is the first type of occupational fraud, and a major concern of risk management specialists. In addition to financial pressures, financial computing and technological methodologies are now providing a number of opportunities to accounting experts in terms of flaws in accounting rules and regulations. Thus, existence of loopholes in the computing system inclines accounting professionals to involve in occupational frauds for their personal enrichment that is the fundamental basis of occupational fraud (Pickett, pp. 40-43, 2006). Lastly, recent decades have indicated huge growth in white-collar criminals that are acquiring a major percent of occupational fraud cases due to their efficient abilities of rationalizing their unethical practices as ethical, as well as lawful (Beenen & Pinto, pp. 275-289, 2009). Due to such common factors that promote occupational fraud, risk management experts (UCL, 2009) are endeavoring to identify flaws in accounting algorithms, and particularly, loopholes in financial computing systems that will be crucial in the detection and most importantly, prevention of occupational fraud in business organizations. Along with focus on accounting rules, lack of internal control is another factor emphasized in the risk management as it allows accountants to plan frauds, and thus, a strict internal control may play a significant role in eliminating chances of frauds in organizations. Furthermore, ethical policies of an organization are as important as water for the fish, as lack of significance of ethics in an organization will become the fundamental basis for employees to become occupational fraudsters. In other words, experts (Singleton, pp. 42-45, 2006) believe that organizations should create efficient ethical policies that will help professionals in detecting and preventing fraud activities in their organizations. Lastly, due to enormous amount of occupational frauds in the financial sector, risk management and forensic accounting is now one of the most important professions in the business sector that are playing a crucial role in identifying and analyzing risks and factors associated with occupational frauds, and other aspects that create risks in the organizations (Mohay, pp. 19-22, 2003). Methodology Besides research statement and objectives, methodology is the most crucial part of a research that is a determining factor for deciding success or failure of a study. In this regard, it is very important to select appropriate research methodology, as inefficient methods often cause unproductive outcomes (Bernard, pp. 51-58, 2005). For such purpose, the research will focus primarily on secondary research methodology that will involve archival research of books, journals, magazines, and websites related to risk management, and specifically occupational fraud. It is an observation that a number of experts have carried out researches on the identified research statement that will be helpful in acquire a critical understanding of the topic, and at the same time, achieve aims and objectives of the research. Nowadays, internet offers analysis of journal articles and previous studies that will be very beneficial in acquiring information. However, at the same time, secondary research findings will not be specific to the research statement (Babbie, pp. 23-25, 2000), and thus, the researcher will benefit from primary research as well. Therefore, primary research methodology will involve questionnaires that will focus on accounting professionals of business organizations, and findings of these questionnaires will enable the researcher to acquire an understanding of occupational frauds on its ground reality. The researcher will endeavor to identify accounting professionals, as well as individuals associated with the field of risk management and forensic accounting. Furthermore, the researcher will consider university students as well that will provide a theoretical perspective of the research statement. In this regard, the research will take a balanced approach by considering both primary, as well as secondary research methodology to carry out the proposed research in an efficient manner. While secondary research will be a simple process in terms of locating and analyzing books, journals, and other material on occupational frauds, the primary research will require enormous amount of efforts in terms of time, funding, and management. In brief, time is the major factor that distinguishes primary research from the secondary one. However, findings of both methodologies will be very effective in providing a high-quality informative and critical analysis that will be very advantageous for future studies. Data Analysis For the proposed research, quantitative analysis will benefit by enabling obtaining of accurate findings. Particularly, proposed research will consider the following formula for sample size calculation: Formula: SS = Z 2 * (p) * (1-p) c 2 Where: SS= Sample Size Z = Z score (1.96 is taken for 95% confidence level according to normal distribution table) p = percentage (50%), expressed as decimal (0.5 used for required sample size) c = confidence interval, taken in decimal form (for ±5, = 0.05) (1.96)2 * (0.5) * (1-0.5) = 0.9604 = 384.16 (0.05)2 0.0025 Confidence Level: 95% Confidence Interval: 5 Sample Size 384 Conclusion In conclusion, the research proposal discussed various significant aspects of occupational frauds that have become a major concern of risk management and forensic accounting specialists in recent decades. In this regard, the proposed research will endeavor to recognize and analyze the available findings critically that will be beneficial for future studies as well. Briefly, the proposed research will carry out primary, and at the same time, secondary methods to acquire realistic and practical information regarding various factors enabling occupational frauds. Moreover, the researcher will attempt to recognize the major contribution of risk management specialists and forensic accountants in the area of occupational frauds. It is anticipation that the proposed research will be beneficial for students, teachers, and professionals in better understanding of the topic. References Beenen, G. & Pinto, J. (2009). “Resisting Organizational-Level Corruption: An Interview with Sherron Watkins.” Academy of Management Learning & Education. Volume 8, Issue 2, pp 275-289. Cipriani, Marco & Guarino, Antonio. (2006) Transaction Costs and Informational Cascades in Financial Markets. Retrieved on Sep 04, 2009: http://www.cs.ucl.ac.uk/financialcomputing/docs/TransactionCosts.pdf Ketz, J. Edward. (2006). Accounting Ethics. Routledge. Koletar, Joseph W. (2003). Fraud Exposed. John Wiley & Sons. Mohay, George M. (2003). Computer and Intrusion Forensics. Artech House. O’Gara, John D. (2004). Corporate Fraud. John Wiley & Sons. Pickett, K. H. Spencer. (2006). Enterprise Risk Management. John Wiley & Sons. Salinger, Lawrence M. (2005). Encyclopedia of White-collar & Corporate Crime. Sage Publications. Singleton, Tommie. (2006). Fraud Auditing and Forensic Accounting. John Wiley & Sons. UCL. (2009). “Financial Computing and Quantitative Finance.” Financial Computing at UCL. Retrieved on Sep 04, 2009: http://www.cs.ucl.ac.uk/financialcomputing/key_themes.htm Wells, Joseph T. (2007). Corporate Fraud Handbook. John Wiley & Sons. Read More