WHY CLOUD ACCOUNTING DOES NOT AUTOMATICALLY REDUCE FRAUD: A CONCEPTUAL FRAMEWORK FOR SMES
DOI:
https://doi.org/10.35631/AIJBES.829041Keywords:
Cloud Accounting, Fraud Risk, Fraud Prevention Mechanisms, SMEs, Socio-Technical Systems TOE FrameworkAbstract
This study develops a conceptual framework linking cloud accounting adoption and fraud risk in small and medium-sized enterprises (SMEs). Prior studies have not reached a clear conclusion on whether cloud accounting adoption reduces fraud risk. To address this gap, the framework shifts attention from technology adoption itself to the organizational mechanisms that determine its post-adoption outcomes. Cloud computing vision is positioned as a strategic antecedent of cloud accounting adoption, while fraud prevention mechanisms explain how technological capabilities may be translated into lower fraud risk. The framework further proposes that organizational conditions influence the effectiveness of this process. The concept of decoupling explains why adopting cloud accounting does not necessarily lead to better fraud prevention when the technology is not substantively integrated into organizational practices and control systems. The study therefore argues that cloud accounting adoption alone is insufficient to reduce fraud risk. Its effectiveness depends on the alignment between technological capabilities, fraud prevention mechanisms, and organizational conditions. The framework contributes to the literature by providing a socio-technical explanation of how and under what conditions cloud accounting may contribute to fraud risk reduction in SMEs.
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