Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


A Disclosure Index to Measure the Extent of Anti-Fraud Reporting in Banks

Author(s): HaithamNobanee, Osama F. Atayah & Muneer M. Alshater

Purpose of the study: This paper aims to develop an Anti-Fraud Disclosure Index (AFDI) for the banking sector. Methodology: In this paper, we have conducted a comprehensive review of fraud prevention and control for banks. We have reviewed financial reporting standards, anti-fraud regulations, and guidelines around the world. We have also included anti-fraud inputs from related journal articles, professional institutes, and auditing firms. Main Findings: The Anti-Fraud Disclosure Index (AFDI) includes 15 categories and 180 developed items to measure the extent of the commitment of the banking sector in fighting several types of fraud. Applications of this study: The anti-fraud disclosure index will serve as an evaluation tool to measure the level of commitment of banks in terms of disclosing their approaches and instruments to prevent fraud. It is also expected to inculcate anti-fraud culture among the banking sector to promote accountability and fraud-fighting. Furthermore, it will assist in providing a comprehensive measurement to evaluate the banking sector's performance in fraud combat. Novelty/Originality of this study: This paper is the first study to develop a comprehensive fraud disclosure index, contributing to prevent and reduce fraud to a reasonable level.

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