This paper aims to develop an integrated framework for assessing the effectiveness of governance mechanisms in reducing financial fraud in non-profit organizations (NPOs). The study employs a descriptive analytical approach and a quantitative research design involving a survey of 87 employees and auditors of Yemeni NPOs. A five-point Likert scale questionnaire was used to gather data on governance mechanisms and financial fraud. The study’s findings reveal that the impact of governance mechanisms on financial fraud varies among NPOs. Four mechanisms (board of directors, audit committee, donor accountability, and beneficiary accountability) prove to significantly reduce the risk of financial fraud, making them the most effective in combating this phenomenon. Conversely, two mechanisms (internal control systems and government entities) are found to be the least effective, resulting in a noticeable increase in financial fraud cases. Additionally, two mechanisms (external and internal auditors) have minimal influence, leading to a non-significant rise in the risk of financial fraud. The integrated framework developed in this study provides a structured and systematic approach for NPOs to evaluate their governance practices and identify areas for improvement. The paper presents and tests a novel integrated framework for assessing effectiveness of governance mechanisms in reducing financial fraud in NPOs. It contributes to the existing literature by examining the interrelationships and interactions among various governance mechanisms and their impact on financial fraud. The framework provides valuable insights for NPOs, policymakers, and researchers seeking to strengthen governance and combat financial fraud in the non-profit sector.
Keywords: Accountability, Effectiveness, Financial Fraud, NPOs, framework integrated, governance mechanisms
