The Contribution of international public sector accounting standards (IPSAS) adoption to fraud risk management: a case study of Zimbabwe Investment Development Agency (ZIDA).

Abstract

The study examines the contribution of International Public Sector Accounting Standards (IPSAS) adoption to fraud risk management in Zimbabwe’s public sector, focusing on the Zimbabwe Investment and Development Agency (ZIDA). The study employed a quantitative explanatory design with data collected from 36 employees and management personnel at ZIDA through structured questionnaires. In a multiple linear regression, the results show a significant positive relation between adoption of IPSAS and performance of internal control (β=0.45), financial reporting transparency (β=0.50), public official accountability (β=0.55) and performance of audit (β=0.60). Results provide with R2 values between 0.62 to 0.70 which explain from 62% to 70% of the variance on the outcome variables from IPSAS adoption and control variables. The findings confirm the positive impact of IPSAS on audit effectiveness on fraud risk management. Although, it seems that enforcement and consistent implementation on a continuous basis could guarantee all IPSAS benefits are gained. The study recommends continuous IPSAS training, stronger monitoring systems, regular audits and effective policy implementation to strengthen governance and fraud risk management in public sector. The research provides valuable insights for developing economies on the role of accounting standards in enhancing transparency, accountability standards in enhancing transparency, accountability and fraud risk management.