Modelling Proactive Fraud Risk Management Practices in South Africa’s Non-governmental Organisations

Purpose: This article empirically investigated the relationship between forensic auditing techniques fraud risk management, focusing on financial statement fraud among non-government organisations (NGOs). It aimed to determine whether forensic auditors prevent, detect, investigate, and respond to the risk of financial statement fraud among these organisations. Design/Methodology/Approach: This study adopted used mixed research method. Data gathered through questionnaire and semi-structured interviews. SPSS was used descriptive statistics analysis. Robustness analysis was entirely performed using Analysis of Moment Structures for CFA were used to estimate statistical models while all the interview questions were analysed using conventional thematic analysis via NVivo 12. Findings: The study’s results and findings of both the questionnaire and interviews reflected statistically significant agreement that NGOs should use proactive forensic auditing techniques in order to respond to the risks of financial statement fraud among NGOs in the eThekwini region. Implications/Originality/Value: This study deepens understanding of forensic auditing as the main driver of fraud risk management among NGOs by providing field-based evidence. It also contributes to the application of critical realism, interpretivism and positivism to accounting and auditing research.