Fraud risk management practice among listed companies in Malaysia: an Islamic perspective

Madah Marzuki, Marziana and Nik Abdul Majid, Wan Zurina and Azis, Nur Kamaliah and Rosman, Romzie and Tumiran, Siti Dalina (2026) Fraud risk management practice among listed companies in Malaysia: an Islamic perspective. Journal of Islamic Accounting and Business Research, 17 (8). pp. 3205-3245. ISSN 1759-0817 E-ISSN 1759-0825

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Abstract

Purpose – This paper aims to explore how fraud risk management is practiced in Malaysia and to identify the role of Maqasid Shariah in deterring fraud cases. At the end, this study aims to propose a fraud risk management model centric on Maqasid Shariah for deterring fraud among public-listed companies. Design/methodology/approach – This study applied a semi-structured interview method that focused on companies with risk management practices, and the responses are then analysed using NVIVO analysis. Findings – The study found that overall, all companies have implemented fraud risk management processes, which consist of fraud risk assessment, fraud risk evaluation, fraud risk prevention and control, fraud risk implementation and monitoring and finally, risk communication. However, Shariah-compliant companies are currently lacking in understanding of the role of Maqasid Shariah in fraud risk management. This can be attributed to the strong influence of Western values in their governance and corporate practices. Therefore, this study proposes a comprehensive fraud risk management model centric on Maqasid Shariah that can help regulators and firms in deterring corporate failure among the listed companies in Malaysia. Research limitations/implications – This study provides guidance to the regulators on the rules and regulations, policies and procedures compatible with Malaysian institutional settings to be followed by the corporations in managing fraud risk and hence reducing fraud cases and corporate failures. However, it is important to note that the findings of this study cannot be generalised to all companies, as its main objective is to specifically analyse the practices of fraud risk management from an Islamic perspective in Shariah-compliant companies

Item Type:	Article (Journal)
Uncontrolled Keywords:	Fraud, Risk, Risk management, Maqasid shariah
Subjects:	BPH Islamic Banking & Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	PROF. DR. ROMZIE ROSMAN
Date Deposited:	04 Nov 2026 15:08
Last Update:	04 Nov 2026 15:09
Queue Number:	2026-10-Q5985
URI:	http://irep.iium.edu.my/id/eprint/132436
Indexed In:	WOS and SCOPUS, ERA, Google Scholar

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