New Tools and Research Projects in Financial Fraud investigation

Towards the end of the semester, the students who are currently undertaking the Anti Money Laundering and Financial Criminology course are busy finalising their final research project. The project requires the students to work in group and to choose real financial fraud cases and to simulate the cases with latest analytical techniques in fraud investigation. The simulation project requires them to come up with fresh documentary evidences by conducting face to face interviews with different groups of employees affected by the fraud or to discuss with enforcement agencies and regulators.. Throughout the semester, the students have been exposed to various real-life financial fraud cases. They had to present two prior cases where they had to (i) identify possible weaknesses in the internal control system; (ii) understand the theories underpinning fraudulent behaviours and (iii) learn to use new tools that can be handy and useful in financial fraud investigation. Three guest speakers comprising a police officer, a merchant banker and a deputy public prosecutor were also invited to give talks on financial criminology.

Forensic Accounting and Financial Criminology Association

The Protem Committee and graduates of our Master in Forensic Accounting and Financial Criminology Program met up today to discuss the formation of the Forensic Accounting and Financial Criminology Association and the registration of the association with the Registrar of Societies (ROS). Members of the association will comprise graduates of the program whose number is now reaching two hundred. The Master program was first introduced in July 2006 and the first graduate cohort was produced in August 2008. In addition to normal membership, the association will also admit students and practioners as associate members. Currently, the top three protem committee members comprise President, Mohd Rashid Tan Sri Musa; Haswadi (Deputy President) and Hesri Faizal (Secretary). The formation of the association will path the way towards developing more qualified professionals in the area of forensic accounting and financial criminology. As a HICoE driving a niche research area of Islamic Financial Criminology, the formation of this new association will certainly adds value to the Accounting Research Institute (ARI)and the Faculty of Accountancy, Universiti Teknologi MARA (UiTM). More collaborative works in the area of research, training program and publications will be initiated with the upcoming association.

Discussions on Islamic Microfinancing

The Islamic Accounting and Muamalat research group had a fruitful discussion with one of the guest speakers of the World Universities 1st Zakat Conference which was just recently held in Kuala Lumpur.
The speaker, Dr Malik Al Asmar (in brown suit)from Belgium visited the Accounting Research Institute this morning to discuss on possible international collaboration in zakat research and Islamic microfinancing. Both topics are in line with ARI's 2012 research program in Islamic Accounting and Muamalat. Dr Malik has agreed in principle to participate with ARI for both projects. A phd student from Iran, Mr Syed (in brown shirt)has recently enrolled with ARI to embark on a study related to Islamic Microfinancing.

Preparing for PhD Research Proposal

This week, aspiring PhD candidates of the university are attending an intensive research proposal workshop which is organized by the Institute of Leadership and Quality Managemenet (IlQAM). As one of the facilitators for the workshop, Prof Dr Normah Omar, Director of the Accounting Research Institute (ARI) delivered her talk today on a topic "Preparing a PhD Research Proposal". It was stressed in her talk that one of the most important elements of a research prosal is the identification of the right "PROBLEM STATEMENT". It is important in a proposal that the problem stand out so that the reader can easily recognize it. Sometimes, obscure and poorly formulated problems are masked in an extended discussion. In such cases, reviewers and/or committee members will have difficulty recognizing the problem. A problem statement should be presented within a context, and that context should be provided and briefly explained, including a discussion of the conceptual or theoretical framework in which it is embedded. Clearly and succinctly identify and explain the problem within the framework of the theory or line of inquiry that undergirds the study. This is of major importance in nearly all proposals and requires careful attention. It is a key element that associations such as AERA and APA look for in proposals. It is essential in all quantitative research and much qualitative research. State the problem in terms intelligible to someone who is generally sophisticated but who is relatively uninformed in the area of your investigation. Effective problem statements answer the question “Why does this research need to be conducted.” If a researcher is unable to answer this question clearly and succinctly, and without resorting to hyperspeaking (i.e., focusing on problems of macro or global proportions that certainly will not be informed or alleviated by the study), then the statement of the problem will come off as ambiguous and diffuse. Once the problem is clearly identified, pay attention to other important components of a proposal:
1. Title (Working Title)
2. Preamble/Introduction
3. Short Statement of the Problem
4. Research Objectives
5. Research Questions/Hypothesis
6. Review of Research Literature
7. The Design - Methods and Procedures
8. Tentative Time Table
9. References
10.Attachments/Appendixes

Financial Fraud Investigation Analysis

Master students from the Anti Money Laundering and Financial Criminology course presented their respective local financial fraud cases and showcased different analytical techniques which include Beniesh M-Score Model, Horizontal & Analytical Analysis, Ratio Analaysia. Fraud Risk Indicator Typology, Risk Management Model, Financial Integrity model, Accounting Anamolies Analysis. Some of the local cases presented include Transmile Berhad, Megan Media Berhad, Nasioncom, Tat Sang Berhad, Jasatera Bhd, Wimems Corporation Bhd, Welli Multi Corporation and Inix Group. One of the groups was presenting two cases of cheque fraud and how the use of the VSC6000 document analyzer machine was able to detect the fraud. The focus of the presentation was to highlight financial fraud investigation framework as well as analysis of the data collected. Most of the companies who were involved with financial reporting-related issues have since either been suspended or delisted from the local bourse.

PhD Colloquium

In conjunction with the 7th International Conference of the Asia-Pacific Management Accounting Association (APMAA)which is hosted jointly by APMAA and Universiti Teknologi MARA (UiTM), a PhD Colloquium is held today. Professor Dr Paul Scarborough from Brock University, Canada gave an interesting keynote speech which implicates the fact that good publications arise from well thought-off research projects. Hence, phd candidates should plan and strategize their research projects in a manner that would result in publication spin-offs. A total of ten papers were presented by ten PhD candidates comprising those from first to final year students. The Accounting Research Institute (ARI) thanks all discussants who took time to review the papers. All in all, the discussants had given some very good feedback for all the papers presented. In fact, the PhD Colloquium 2011 is APMAA's latest initiative for its annual conference activity. More than fifty PhD students attended the one day colloquium held at the Wawasan Room, Universiti Teknologi MARA's beautiful green campus in Shah Alam. Well done all and thank you

Learning More About AML/CFT

In pursuing research in financial criminology, one must understand the laws governing financial fraud. One such law is Malaysia's Anti Money Laundering and Anti Terrorism Financing Act (AMLATFA 2001)which was introduced in 2001. Today we invited a Deputy Public Prosecutor (DPP) who was handling the AMLA and financial crime cases at the Attorney General Chamber office prior to his recent appoinment with the Malaysian Anti Corruption Commission (MACC). DPP Mohd Saifuddin shared his experiences with the Master of Forensic Accounting and Financial Criminology students on issues and challenges in implementing the Act. In his lecture, the DPP shared a lot of real case studies with the students. In gathering evidences for financial fraud cases, investigators must have the ability to "read in between the lines" and gather as much information from witnesses as they possibly could...