The questionnaire comprises two major sections. The first captures the main
independent variables that examine the factors potentially associated with the
non-occurrence of fraud in organizations. The study’s dependent variable was a
dichotomous variable that took a value of 1 if an organization had never experienced
fraud and 0 otherwise. Factor analysis with principal component extraction using
varimax rotation was first conducted to confirm whether the questions under each
of the four independent variables, namely, “audit committee effectiveness,”
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“internal audit effectiveness,” “tone at the top,” and “receipt of qualified audit reports,”
actually measured each of the underlying constructs (Table I) (Field, 2005).
Audit committee effectiveness and internal audit effectiveness were each