MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 25 NO. 2, AUGUST 2026
Fraud Risk Management Disclosure Among Award-Winning Shariah-Compliant Companies in Malaysia: A Legitimacy Perspective
Corina Joseph1, Nur Izyan Ismail2, Sharifah Norzehan Syed Yusuf3, Saifulrizan Norizan4 and Siti Aimi Mohamad Yasin4
1,2,4,5Faculty of Accountancy, Universiti Teknologi MARA, Sarawak Branch, Sarawak, Malaysia
3Faculty of Accountancy, Universiti Teknologi MARA, Selangor Branch, Malaysia
ABSTRACT
The purpose of this research is to assess the extent of fraud risk management disclosure by NACRA 2024 award-winning companies that are Shariah-compliant in Malaysia. Legitimacy theory was applied to evaluate fraud risk management disclosures. Using a new Fraud Risk Management Disclosure Index containing sixty-nine items, a content analysis of annual reports from ten NACRA 2024 award-winning companies was conducted. Results demonstrate an adequate overall level of fraud risk management disclosure, specifically within the categories of governance structures, internal control frameworks and audit oversight. These results indicate high levels of compliance with regulatory and ethical standards. While some operational information exists such as fraud-risk preventive measures and due diligence, the amount of information available in these categories appears to be comparatively lower than in the two previous categories. It indicates a preference for symbolic rather than substantive transparency. Hence, this study contributes to the literature by identifying fraud risk management disclosure as a new category of governance disclosure and by providing useful practical guidance for regulators and companies seeking to enhance their fraud governance practices.
Keywords:
Fraud Risk Management
Disclosure
Legitimacy Theory
Shariah-Compliant Companies
*Corresponding Author.
E-mail address: izyanismail@uitm.edu.my