APPENDIX 4: LIST OF SCHEDULE 1 OFFENCES 270
7.5 RESEARCH STRATEGY
The research strategy entailed a comprehensive search of the latest and relevant literature relating to employee fraud and prevention strategies at universities in KwaZulu-Natal. The literature search formed the prelude to this study as it provided a foundation of knowledge on available theoretical concepts as well as models and frameworks. The research strategy also entailed the gathering of quantitative and qualitative data by means of survey questionnaires and face-to-face interviews with knowledgeable individuals as well as the gathering of data from fraud case files. As part of the qualitative approach, knowledgeable individuals were interviewed on a face-to-face basis using a survey questionnaire which contained closed-ended and open-ended questions. Data collected from the three methods (survey questionnaire, face- to-face interviews and the fraud cases files) were captured onto three spreadsheets and provided to the statistician for analysis. The analysed data received from the statistician were interpreted and incorporated into this study.
7.5.1 Questionnaires
The survey was carried out using a structured self-administered survey questionnaire (Babbie 1998:257-263), which was distributed electronically to all participants using the electronic software called QuestionPro. The questionnaire included a section that required the biographical details of the participants. The structured questions were both closed-ended and open-ended. The purpose of questions that were open-ended was to afford the participants the opportunity to expand on their answers for clarification or to express an opinion on the issue.
The options of “yes” or “no” and multiple choice answers were also provided in the questionnaire. There were a total of 59 closed-ended questions and a total of 6 open-ended questions. According to Welman and Kruger (1999:155), the summated or Likert scale is popularly used in the social sciences. The Likert scale usually embodies a five-point scale, where the options are Strongly agree, Agree, Neither agree nor disagree, Disagree or Strongly disagree. The participants were requested to indicate their answers based on Likert scale.
7.5.2 Interviews
As part of the literature review phase, face-to-face interviews were conducted with knowledgeable individuals who are skilled and experienced in conducting forensic investigations into employee fraud within universities, particularly universities in KwaZulu- Natal. The implication of interviewing these knowledgeable individuals was that data was collected from them based on their experiences in investigating fraud at universities. Using the non-probability purposive sampling method, two categories of knowledgeable individuals were identified, who had investigated frauds that had occurred at universities. These knowledgeable individuals were either permanently employed by universities or those in the private sector to whom forensic investigations are outsourced by universities. Three out of the four universities in KwaZulu-Natal outsourced their investigations into employee fraud to forensic auditing companies as they did not have the capacity within the university to investigate such cases.
The fourth university employed 5 skilled and experienced permanent employees to conduct these investigations. Additionally, there were 4 experienced and skilled directors identified who are employed within four separate forensic auditing companies and who are known to possess experience and skill in conducting forensic investigations into employee fraud at universities in KwaZulu-Natal.
The interviews with these 9 knowledgeable individuals were conducted on a face-to-face basis at their convenience. The questionnaire that was used for the electronic self-administered survey was appropriately adapted and used for the face-to-face interview process as well. The questionnaire was adapted by adding a further 5 open-ended questions. A total of 59 closed- ended questions and 11 open-ended questions were put to the knowledgeable individuals. All the knowledgeable individuals were asked the same questions. The questionnaire included a section that required the biographical details of the participants. The structured questions were both closed-ended and open-ended. The purpose of open-ended questions was to afford the participants the opportunity to expand on their answers for clarification or to express an opinion on the issue. The options of “yes” or “no” and multiple choice answers were also provided in the questionnaire.
7.5.3 Fraud Case Files
Another method to collect data from the literature included the review of fraud case files.
During communication with the four universities in KwaZulu-Natal it was found that fraud
case files were only available at one university because the other three universities outsourced investigations into employee fraud to forensic auditing companies. Data from case files involving employee fraud at these three universities were not available to be reviewed due to the confidential nature of the investigations. The face-to-face interviews with directors of four forensic auditing companies in KwaZulu-Natal, such as KPMG, PwC, Deloitte and Sizwe Ntsaluba Gobodo contributed towards addressing this deficiency because data about investigations into employee fraud at the three universities that outsourced such investigations could be collected from these directors.
There were 12 cases of employee fraud investigated at one of the four universities in KwaZulu- Natal. Pertinent data were collected from these fraud case files which were then captured onto a Microsoft Excel spreadsheet. The data were coded and analysed. Themes were identified from the analysed data based on information collated from the review of literature and the survey. The frequency distribution of individual themes was ascertained. The analysed data were included in the literature chapters of this study.
Data were collected from case files pertaining to fraud cases that were investigated by forensic investigators employed by universities located in KwaZulu-Natal during 2013. The 12 cases related to fraud committed by employees of the university. Six of these cases related to fraud that was committed against the university where the employee colluded with the supplier to commit the fraud. The other 6 fraud cases related to employees who acted on their own in order to enrich themselves. The types of documents that were analysed were forensic reports that were issued for each fraud case that was investigated by these forensic investigators. The reason for specifically choosing forensic reports was because all the data pertaining to the fraud cases are embodied in the forensic report. The purpose of reviewing and analysing the fraud case files was to establish the following:
What was the cause of the fraud?
What was the nature of the fraud committed by employees?
What was the modus operandi of the perpetrator?
What was the motive of the perpetrator?
What measures were in place to prevent fraud?
Why did the existing measures become deficient?
What other factors led to the commission of fraud?
What new measures have been implemented to prevent fraud from recurring?
The objective was to collect data from the forensic reports that would assist in answering the research questions. Data were collected about fraud cases from one university where fraud case files were available. It was possible to gain access to these case files because such cases were investigated internally by university employees tasked with investigating fraud cases. It was not possible to gain access to fraud case files at three other universities because fraud cases were investigated by external forensic auditing companies that were appointed by these universities for such a purpose. Fraud case files, pertaining to cases that were investigated by forensic investigators employed by universities in KwaZulu-Natal during 2013, were reviewed.
Fraud cases that were investigated during 2013 were chosen because there were certain cases that were investigated during 2014 which were still in progress when this study was undertaken and were therefore sub judice. The specific type of document that was reviewed was the forensic report that was issued for each fraud case investigated by these forensic investigators. The reason for specifically choosing forensic reports was because all the data pertaining to the fraud case are usually embodied in the forensic report. The objective was to collect data from the forensic reports to assist in answering the research questions.