Forensic Accounting

M18 - Cross-Border E-commerce Supplier Fraud and Governance Mechanisms


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The sources provide an overview of a study focusing on supplier financial fraud and strategic opportunism within cross-border e-commerce, particularly concerning smaller international buyers. This research, likely from Monash Business, examines proprietary data of over 1000 complaints from a non-profit website, SupplierBlacklist.com, to predict the likelihood of financial fraud versus other issues like poor quality or delivery problems, termed myopic opportunism. The core objective is to analyze whether and which procurement governance mechanisms, such as screening, auditing, and resolution practices, effectively limit this supplier opportunism, especially considering the limited experience and resources of Small and Medium Enterprises (SMEs). Furthermore, the study explores how factors like the buyer's country status (OECD vs. Non-OECD) and the stage of the buyer-supplier relationship (initial vs. repeat order) influence the effectiveness of these governance measures in preventing various types of scams.

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Forensic AccountingBy Dr Neale G O’Connor