Risk management, top management support, internal audit activities and fraud mitigation
ISSN: 1359-0790
Article publication date: 24 January 2020
Issue publication date: 2 February 2023
Abstract
Purpose
This paper aims to examine the effect of top management support (TMS) and risk management (RM) on the internal audit activities (IAA) and fraud mitigation (FM) in the Libyan banking sector.
Design/methodology/approach
The data is collected using a survey questionnaire of 16 commercial banks in Libya and analysed using a structural equation modeling.
Findings
The study shows positive and significant relationships between RM and employees’ FM and TMS and employees’ FM. The study also demonstrates a significant mediating effect on the relationship between RM, TMS and FM.
Research limitations/implications
The study is conducted in the Libyan banking sector. Further research is needed in other contexts and sectors to understand the contribution of the RM and TMS on FM, including the impact of technology and internal audit characteristics in terms of experience, education and professional certificates on FM.
Originality/value
The study is the first attempt to explore FM in an emerging economy, particularly Libya, by introducing IAA as a mediator. The study provides implications for regulators and top management in the banking sector.
Keywords
Acknowledgements
An earlier version of this paper was presented as a sundry paper at the National Seminar on Digitalisation, Sustainability and Globalisation (10th Faculty of Economics and Management Seminar, UPM) on 16 July 2019 at Universiti Putra Malaysia. The authors thank the conference reviewer for suggesting improvements. Any errors nevertheless remain the authors’ own responsibility.
Citation
Alazzabi, W.Y.E., Mustafa, H. and Karage, A.I. (2023), "Risk management, top management support, internal audit activities and fraud mitigation", Journal of Financial Crime, Vol. 30 No. 2, pp. 569-582. https://doi.org/10.1108/JFC-11-2019-0147
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited