Fraud Detection and Prevention in Securities: The Case of Palestine Securities Sector رسالة ماجستير

Abstract

This study aims to explore the reality of fraud detection and prevention in securities in Palestine Securities Sector. Besides, exploring the reasons for occurrence of fraud, identifying the most prevalent types of fraud as well as the red flags" that signal potential financial fraud in the Palestinian securities sector. Additionally, exploring the most followed fraud detection and prevention mechanisms in Palestine. The study used the mixed research approach using interviews and questionnaire design. The data was taken from a sample of (141) external and internal auditors. The study results demonstrated that the auditors were rarely interacted with fraud cases. Moreover, the highest percentage of them stated that they have moderate level of training in fraud detection and prevention. Besides, there are several reasons of potential fraud in Palestine securities sector. The most demonstrated reasons of committing fraud are poor management policies, inadequate training of those responsible for fraud detection. Additionally, economic pressure, and lack of government intervention. Furthermore, the most prevalent types of fraud in Palestine securities sector are misappropriation of funds, accounts manipulation to conceal theft or inflate company value. Likewise, creating or altering documents to support fraudulent claims or tranactions.as well as false financial statements and using of companies` assets to personal use. Additionally, the study revealed that the most common indicators or red flags that signal potential financial fraud in the Palestinian securities sectors are financial statements discrepancy due to inconsistent comparative numbers between balance sheets, income statements and cash flow statements. VI The researcher suggested that there is a necessity to invest in auditors` training and development their competencies and qualification in fraud prevention and detection through continuous training and improvement and encouraging them to have professional certificates. Furthermore, Palestine securities sector should establish and develop clear strategies to conduct regular assessments and system developments to increase the quality of fraud prevention and detection practices. Eventually, there is a necessity to strengthen the internal communication and information instruments to confirm the rapid and transparent flow of information among the different departments in the company.