Occurrence Of Fraud Research Articles

Accounting Information System Analysis of Merchandise Inventory at PT Arnetha Jayapura

An accounting information system is a system that functions to carry out company data processing tasks by collecting data, changing data and providing quality information for users. This information is used to assist companies in making decisions and the existence of control elements in the accounting information system will be able to reduce the occurrence of errors and fraud. This research aims to find out how the accounting information system is implemented for merchandise inventory at PT Arnetha Jayapura. The results of the research show that the implementation of the accounting information system for merchandise inventory at PT Arnetha as a whole is quite good where work can be completed according to plan. However, there are still PT. Arnetha policies that are not appropriate, namely in terms of internal control, namely that there has not been a separation of functions between receiving goods and storage or warehouse, as well as recording inventory cards with the warehouse.

Analysis and thinking of Hongda New Material Financial Fraud Case

With the continuous development of the economy, emerging companies in various industries are also competing for flowers, so information stakeholders in all aspects will pay more attention to the appreciability of profits when using financial statements, and accountants will be more likely to whitewash the statements. However, the occurrence of financial fraud will not only cause huge losses to enterprises, but also expose some shortcomings in various aspects of business ethics and professional ethics. Therefore, this paper analyzes the financial fraud incidents of Hongda New Materials, which then leads to various business ethics and professional ethics thinking problems such as the lack of ethics of financial personnel, the ineffective internal control system of enterprises, and the incomplete construction of industry rule of law, and gives suggestions for feasible measures.

Fathoming fraud: unveiling theories, investigating pathways and combating fraud

PurposeAlthough corporations exert considerable efforts to uphold ethical standards in their business operations, fraud instances persist as an enduring and formidable challenge within organisations, defying their utmost efforts. The presence of fraud poses a substantial and recurring threat to corporations, leading to significant financial losses on an annual basis. This emphasises the crucial need for a comprehensive understanding of the factors contributing to fraudulent activities and the intricate nature of fraud risk factors inherent in business operations. Therefore, this paper aims to enhance the efficacy of fraud detection and prevention measures through critical analysis and refinement of established fraud theories, drawing upon the existing literature on this subject matter.Design/methodology/approachThis paper offers a comprehensive qualitative analysis of the existing literature, thoroughly reviewing prominent models that aim to elucidate the underlying motivations behind fraudulent behaviour. Moreover, drawing upon the existing theoretical foundation, this study conceptualises a model that enhances the understanding of the crucial factors contributing to fraudulent behaviour.FindingsThe study presents new theoretical insights concerning the role of personal integrity in fraudulent decision-making, presenting refined interventions that enhance comprehension of the underlying drivers of fraud occurrences and strategies for prevention. Furthermore, the study reveals a comprehensive three-part approach to improving organisational health through strengthening compliance mechanisms and cultivating an ethical-values-based culture.Originality/valueThe study introduces a novel conceptual framework, the personal ethic-based fraud motivation model, which offers a deeper understanding of the factors and conditions influencing individuals’ propensity to engage in fraudulent activities. Furthermore, this study presents a three Cs strategy that effectively delineates the influential forces that drive individuals to surmount fraud risks.

Reduce Fraud: From Fraud Motivation to Fraud Avoidance

The development of information technology and digital transformation in recent years, not only brings the innovation of fraud detection and the progress of fraud avoidance but also brings new fraud motivation and more serious fraud impact. This paper mainly studies the motivation, impact, detection, and avoidance of fraud, through the discussion of these aspects to assist to reduce the occurrence of fraud. The research method of this paper is to summarize and analyze the literature related to the fraud in recent 10 years. This paper finds that starting from the motivation of fraud, impact, detection, and avoidance are closely related to the motivation, especially the study shows that there is a strong connection between fraud motivation and fraud avoidance, in other words, the most effective way to avoid fraud is to cut off the source of the motivation.

Comparative Study of Fraudulent Activities and Various Fraud Detection Techniques

Abstract: This study highlights the critical role that effective fraud detection systems play by examining the rising occurrence of fraud across industries, which is being driven by technological advancements. By examining a number of fraud categories, such as money laundering, cryptocurrency-related schemes, credit card fraud, and mortgage fraud, this study highlights the need for rigorous preventive measures. By carefully examining a wide range of detection techniques, including Support Vector Machines, Fuzzy Logic, Artificial Neural Networks, Hidden Markov Models, K-Nearest Neighbour, and Bayesian Networks, the research reveals the expanding toolset against fraudulent activity. Through a rigorous examination of applicable literature, creative cutting-edge methods, and astute investigations, the research highlights the crucial necessity of fraud detection systems across a variety of industries. The need for more innovation and interdisciplinary collaboration is highlighted by the discovery of knowledge gaps in real-time data analysis, handling unbalanced datasets, and resilient tactics against adversarial attacks. Our research also contributes to the development of strategies for preventing fraud, ensuring the dependability of financial institutions, and fostering confidence in a time of complex technological connections.

Fraud Control to Strengthen Internal Control Systems in Local Goverment

The purpose of this research is to analyze the existence and application of the Fraud Control Plan attributes in the work environment of the organization. The research method in this research is descriptive qualitative with a case study at government agencies in Bone Bolango Regency, Gorontalo Province that implements the Fraud Control Plan control tool. The results of this study that this government agencies has a good assessment in realizing the performance of Good Governance in the criteria of "Sufficiently adequate" in an indication of a reduction in fraud and an increase in employee performance in the organization. the important value of the presence of fraud control for agencies is the accountability of each attribute value reflects the transparency of each activity. Control of each agency is more controlled and positively directed and further minimizes the occurrence of fraud. The value that can be drawn from this research is the achievements that have been made optimally so that they can be properly maintained, and for elements that have not been fulfilled so that they can be corrected immediately in accordance with local government procedures and policies. The next researcher should consider the other methods used.

The Role of Forensic Accounting in Bridging the Audit Expectation Gap of Microfinance Banks in Akwa Ibom State

The audit expectation gap has widened due to the occurrence of undetected high-profile financial statement frauds, highlighting the need for effective measures to address this issue. This study investigated the role of forensic accounting in bridging the expectation gap among stakeholders in microfinance banks in Akwa Ibom State. Using a survey research design, primary data were collected from 128 respondents representing a sample size drawn from ten randomly selected microfinance banks in Uyo. The data were analyzed using Pearson’s correlation coefficient statistical tool. The findings indicated that incorporating forensic accounting skills significantly mitigates corporate financial fraud by promptly detecting fraudulent patterns that traditional audits may overlook. This highlighted the importance of forensic accounting in addressing the limitations of conventional audit practices. Based on the results, the researcher concluded that forensic accounting practice plays a crucial role in bridging the audit expectation gaps of microfinance banks. To enhance financial reporting quality and stakeholder confidence, it was recommended that microfinance bank directors engage auditors equipped with requisite forensic accounting skills. This proactive approach will enable the early detection and effective mitigation of fraudulent financial reporting, ultimately leading to the production of qualitative financial reports that meet stakeholder expectations.

Enhancing Fraud Detection and Prevention through Effective Control Environment: A Phenomenological Study


 
 
 
 
 
 This research delves into the pivotal role of the control environment as the bedrock of internal control, shaping the organization's culture and structure. By encompassing integrity, ethical values, organizational structure, human resource policies, and management practices, the control environment significantly influences fraud occurrences. This study aims to explore how the control environment contributes to fraud detection and prevention. Employing a qualitative phenomenological approach, the research probes into human perceptions and experiences, shedding light on the intricate interplay between control environment elements and fraud mitigation efforts. The findings provide valuable insights into the practical implications of cultivating a robust control environment to curb fraudulent activities, thereby fostering a more secure and ethically sound organizational ecosystem
 Highlight:
 
 Foundational Importance: This study examines the central role of the control environment in shaping organizational culture and structure, thereby significantly influencing fraud occurrences.
 Holistic Impact: Encompassing integrity, ethical values, structure, policies, and practices, the control environment's interplay is explored to understand its contribution to fraud detection and prevention.
 Phenomenological Exploration: Employing a qualitative phenomenological approach, the research delves into human perceptions, shedding light on the intricate relationship between control environment elements and efforts to mitigate fraud. The findings offer practical insights for cultivating a robust control environment that fosters a secure and ethically sound organizational ecosystem.
 
 Keyword: Control Environment, Internal Control, Fraud Detection, Prevention, Qualitative Phenomenology
 
 
 
 
 

Fraud in Tax Evasion Decision: Effect on Financial Pressure, Tax Investigation and the Perceived Probability of Audit

Purpose – This research aims to investigate the effects of financial pressure, the perceived probability of audit, and tax investigation on the decision to carry out tax evasion.
 Design/methodology/approach – The Study is a quantitative research approach that uses online-based data collection methods (e_ questionnaire) combined with interviews with certain taxpayers to get their views on fraud in tax evasion decisions. The sample in this study was 98 individual taxpayers in Indonesia.
 Findings – This research shows that financial pressures have a dominant effect on tax avoidance. This finding proves that financial pressure is one of the reasons for committing tax evasion fraud as stated in the fraud triangle theory. This research also shows that the perceived probability of audit and tax investigation does not affect reducing the tendency to tax evasion, this research indicates that tax investigation does not have a deterrent effect on taxpayers in committing tax evasion. Taxpayers understand that the government is spending considerable time and money to prove an alleged tax evasion case. Several tax policies in Indonesia such as the sunset policy, tax amnesty, and voluntary tax reporting can provide space for tax evaders to get certain tax collections and tax deductions when making tax payments.
 Research limitations/implications – Although this research has explored taxpayers in Indonesia with several different occupational backgrounds, it is still necessary to test tax evasion on corporate taxpayers other than personal taxpayers. 
 Practical implications – This research critically analyzes the impact of psychological factors in tax non-compliance decisions through tax evasion fraud.
 Social implications – The behavioral approach and consideration of psychological factors in every tax decision are expected to help realign and harmonize law enforcement practices in Indonesia to reduce the occurrence of tax evasion in Indonesia.
 Originality/value – Examines the implementation of fraud triangle theory in tax evasion decisions. This research combines behavioral and psychological approaches to test the occurrence of tax evasion fraud in the perspective of taxpayers in Indonesia.

The Effect of Forensic Audit Services on Tax Fraud in South-South, Nigeria

The need to address tax fraud has increasingly been attracted to the state authorities’ administrators, decision-makers, scholars, and investigators in Nigeria. Although various efforts have been made to alleviate it for effective revenue generation, mobilization through taxation is still low. Consequently, this study examined Forensic Audit Services and Tax Fraud in South-South Nigeria. To this end, a cross-sectional research design with a survey research strategy was used. Copies of questionnaire, reflecting the research questions, were distributed to a sample size of 228 staff in the Nigerian Federal Inland Revenue Service in the South-South States with a target population (of 530) and a sampling error of 5% at a 95% confidence interval. To assess the study's hypotheses, the Robust Least Squares Estimation technique was used. Findings revealed that Forensic Audit Investigation Services disaggregated into Background Investigation, Investigative Interview, and Analytical Procedures exert a negative and significant effect on Tax Fraud. It was also revealed that the explanatory power of Litigation Support Services in the form of Pre-trial Support and Expert Witnessing negatively and significantly affected Tax Fraud. The implications of these findings suggest that forensic audit services mitigate the occurrence of tax fraud in Nigeria, thereby improving compliance and tax revenue generation. On the premise of the foregoing, we recommend that tax investigating agencies, such as the federal Inland Revenue Service and its counterparts in the states (all in Nigeria) should employ background investigation techniques including surveillance, undercover operations and database searches as a routine procedure to proactively search for indicators of fraud. Besides, tax officials should be well trained on the usefulness and application of analytical procedures, ranging from simple ratio analysis, data mining techniques, Bedford’s Law, and Beneish model during an investigation, to help in their audit efficiency.

The Urgency of Regulation of Tax Criminal Actions in Preventing Loss of State Revenue in the Tax Sector

This article examines the urgency of regulating tax crimes in preventing loss of state revenue in the tax sector. The research method used in writing this article is a normative juridical paradigm or doctrinal legal research. The basis for writing this article is literature with a focus on analyzing primary legal materials and secondary legal materials. That is, this research will refer to the legal norms contained in the laws and regulations related to criminal law legislation policies in the tax sector. The results of this study are that the regulation of tax crimes has an important role in preventing or overcoming the occurrence of fraud and crime in the field of taxation. In addition, the regulation of tax crimes as an effort to overcome crime in the tax sector can be carried out preventively and repressively so that the state avoids losses to income in the tax sector. Keywords; Regulations, Crimes, Taxes, Losses, State Income

Pendeteksian Fraudulent Financial Statement: Pengujian Fraud Heptagon Theory

Objectives. This study aims to examine Reskino's (2022) heptagon fraud theory, which encompasses seven dimensions: pressure, opportunity, rationalization, competence, arrogance, culture, and religiosity.Design/method/approach. Data was collected through purposive sampling, wherein questionnaires were distributed to auditors in DKI Jakarta. A total of 117 respondents completed the questionnaires, and subsequently analyzed using SEM-PLS.Result/findings. The results show that pressure, opportunity, rationalization, and competence do not have a significant impact on detecting fraudulent financial statements. On the other hand, arrogance, culture, and religiosity are revealed to exert a strong influence in this regard.Theoretical contribution. This study represents the inaugural examination of the most recent fraud theory, known as the fraud heptagon theory, formulated by Reskino (2022). The primary aim is to address the existing gap in the literature, which lacks an explanation for fraud occurrences attributed to religious and cultural factors.Practical contribution. The anticipated outcome of this research is to provide valuable insights that could serve as input for regulators in formulating regulations that consider the influence of religion and culture.Limitations. This study solely relies on primary data gathered from the perspectives of auditors operating in the DKI Jakarta region. Consequently, the research scope is limited, making it inappropriate to generalize the findings to auditors outside the DKI Jakarta area.

The Effect of Fraud Diamond on Financial Statements of Insurance Companies in Indonesia

The Jiwasraya corruption scandal and related cases revealed significant financial distress, opportunities for fraud, rationalization of actions, and the ability to manipulate financial statements, emphasizing the importance of research and awareness in addressing fraudulent financial statements in the insurance industry. This study aims to analyze the impact of the fraud diamond, composed of pressure, opportunity, capability, and rationalization, on corporate financial statement fraud. This study is crucial due to the pressing issue of fraud incidents at several state-owned insurance firms in recent years. An insurance company serves as the sample for this research, using STATA to utilize 55 financial statement observations from 2016-2020, with a research duration of 5 years. The study's findings were not able to establish that the fraud diamond, composed of pressure, opportunity, capability, and rationalization, affects financial statement fraud. This contradicts the results of previous examinations and marks the first instance of rejection of a hypothesis established through regression modeling in this field of study. The occurrence of financial statement fraud may vary among sectors based on the results of this study. This study contributes to understanding fraudulent financial reporting in the insurance industry, emphasizing the importance of pressure and opportunity as key factors.Â

The Influence of Individual Auditor Factors on the Auditor's Ability to Detect Fraud with Whistleblowing as a Moderating Variable

The role of the auditor is crucial in analyzing the occurrence of fraud. This study investigates the effect of professional scepticism, independence, and competence on the auditor's ability to detect fraud, with whistleblowing as a moderating variable. The study population was composed of junior and senior auditors at BPK RI. The data in this study were collected through questionnaires. This type of study is hypothesis testing research. The number of samples collected was 157. The pieces were determined by the convenience sampling method. The results of the survey show that professional scepticism has no positive effect on the auditor's ability to detect fraud, independence has a positive impact on the auditor's ability to detect fraud, the auditor's competence has no positive effect on the auditor's ability to detect fraud, whistleblowing does not moderate the impact of professional scepticism on the auditor's ability to detect fraud, whistleblowing does not moderate the impact of independence on the auditor's ability to detect fraud, and whistleblowing does not moderate the effect of the auditor's competence in detecting fraud.

TSE-Tran: Prediction method of telecommunication-network fraud crime based on time series representation and transformer

Telecom network fraud has become the most common and concerning type of crime and is an important public security incident that threatens urban resilience. Therefore, preventing a continuous rise in telecommunications and network fraud will help establish a resilient urban governance system. Undertaking the spatiotemporal forecasting of telecommunications-network fraud trends is of significant importance for aiding public security agencies in proactive crime prevention and implementing targeted anti-fraud campaigns. This study presents a telecommunication network fraudulent crime prediction method called TSE-Tran, which integrates temporal representation and transformer architecture. The time-series data of telecommunication-network fraud occurrences were input into the TimesNet module, which maps the sequence data to a more precise feature representation tensor that accounts for both intra- and inter-cycle features. Subsequently, the data are fed into the transformer-encoder module for further encoding, capturing long-range dependencies in the time-series data. Finally, occurrences of future telecommunication network frauds are predicted by a fully connected layer. The results of the study demonstrate that the proposed TSE-Tran method outperforms benchmark methods in terms of prediction accuracy. The results of this study are expected to aid in the prevention and control of telecommunications and network frauds effectively strengthen the resilience of urban development and the ability to respond to public security incidents.

Peran Kepemimpinan Dalam Menekan Terjadinya Kecurangan Penerimaan Kas Pada Industri Hotel

This study is entitled "The Role of Leadership in Suppressing the Occurrence of Fraud in Cash Receipts." This study aims to analyze and identify the role and leadership attitude of the Chief Accountant to suppress, minimize, and avoid fraud committed in the process of cash receipts in a hotel that has its own management (not professional management). Based on the data sources that have been identified, it turns out that there is still the potential for fraud to occur in cash receipts. Various data sources that have been obtained say that the occurrence of fraud is caused by the workers themselves. Factors causing the occurrence of fraud come from several things, one of which comes from the mindset and behavior of the perpetrators of the fraud itself. Other factors from the corporate environment can also lead to acts of fraud, namely the inconvenience that is obtained by the perpetrator in working at the company. We then analyze the data sources that have been collected to obtain clear information regarding the occurrence of the fraud. The conclusion that can be drawn from the results of data analysis and identification, that the occurrence of fraudulent cash receipts occurs due to the lack of a leader's attitude in the control and supervision strategy carried out. The attitude of a Chief Accountant who pays little attention to these problems makes it easy for fraud to occur. The effectiveness applied by a Chief Accountant and the adoption of a leadership style are still relatively low. It is hoped that the application of the leadership attitude of a Chief Accountant will provide solutions that have a significant effect and be able to overcome this so that it does not happen again in a company.

Pengaruh Moral Sensitivity, Transparansi dan Akuntabilitas Terhadap Pencegahan Fraud Dalam Pengelolaan Alokasi Dana Desa

This study aims to determine the effect of moral sensitivity, transparency and accountability on fraud prevention in managing village fund allocations in the Masamba District, South Sulawesi. The method used in this research is quantitative. The population of this study were all village officials in Masamba sub-district, Luwu-north district, South Sulawesi province. The sample for this study were 116 village officials, obtained using a non-probability sampling technique, namely saturated sampling. While data analysis is utilized to assess research hypotheses in order to formulate study outcomes by statistical testing using SPSS software, this type of data empolys primary data by distributing questionnaires to respondents. The results of the study show that moral sensitivity has no effect on fraud prevention in managing village fund allocations. This study also found that transparency and accountability have an influence on preventing fraud in managing village fund allocations. These findings help to gain insight regarding special attention to approaches that can minimize the occurrence of fraud in the management of village funds, namely morale and transparency and accountability.

FINANCIAL STATEMENT FRAUD: PENGUJIAN FRAUD HEXAGON DENGAN MODERASI AUDIT COMMITTEE

Financial statement fraud has received a lot of attention over the past few years and will continue to become a concern because financial statement fraud can appear in various forms such as hiding assets, exaggerating assets, sales and profits, understating liabilities and costs. Even once deceptive fraudulent accounting practices are initiated, a whole system of manipulation will be used to maintain the appearance of sustainability. Financial reports are used by shareholders to measure company performance versus expectations. However, sometimes manipulated to fulfill one's greed. Many studies have been conducted in detecting and predicting the occurrence of financial statement fraud. This study explores the significant impact on corporate culture in the occurrence of financial statement fraud. Culture has been widely accepted as behavior pattern that influences society's character. In studying the occurrence of financial statement fraud, elements of corporate culture need to be considered along with other factors. This research provides a holistic view of the concept of culture and its influence on organizations and behavior. The second objective is to discuss the influence of corporate culture from the perspective of financial statement fraud. The research findings provide suggestions for improving corporate culture.

The Effect of Audit Quality on Fraud Reduction: A Moderating Role of International Financial Reporting Standards (IFRS) Adoption in Malaysia and Indonesia

Purpose: This study examines the relationship between audit quality and fraud reduction as well as investigates the adoption of IFRS in developing countries which is Malaysia and Indonesia to provide a comparison between IFRS adopter (Malaysia) and non-adopter (Indonesia) countries in the relationship between audit quality and fraud reduction. Theoretical framework: This study applies two main theories; Policeman Theory and Institutional Theory. Design/methodology/approach: The research data covers listed companies in Malaysia and Indonesia. The total number of firms is 643 from the year 2015 to 2020 with 2502 total observations. Findings: The findings indicate that audit tenure, return on assets (ROA) and size have a significant and positive relationship in the reduction of fraud in Malaysia but audit fee, leverage and size have a significant and negative relationship in the reduction of fraud in Malaysia. Similarly, this study found that audit fee, leverage, return on assets (ROA) and audit tenure has a positive and significant relationship in the reduction of fraud in Indonesia. Besides, size have a negative and significant relationship in the reduction of fraud in Indonesia. This study also found that IFRS has a moderate effect on the relationship between audit fees and audit tenure towards fraud reduction in Malaysia and Indonesia. Research, Practical & Social implications: Future studies are encouraged to examine the effects of Sharia Compliance on the quality of audit processes and the reduction of fraud, especially in areas where Islamic finance is common. It is also suggested that future research should expand the statistical methods used beyond the Ordinary Least Squares (OLS) model to potentially include Logistic Regression Models (LRM). This could lead to a significant improvement in the accuracy and dependability of the research outcomes. Originality/value: The study provides valuable insights into the relationship between audit quality and fraud reduction, as well as the moderating effect of IFRS in Malaysia and Indonesia. The findings have significant practical implications for policymakers, companies, and auditors looking to improve the regulation of auditing practices and reduce the occurrence of fraud.

Analysis of financial fraud cases based on Fraud Triangle Theory

In recent years, the frequent occurrence of financial fraud in listed companies has caused a huge impact on enterprises and investors.In this paper, Beijing Blue Mountain Technology Co., LTD. (hereinafter referred to as "Blue Mountain Technology") as an example, through the fraud triangle theory, from the pressure, opportunity, excuse three aspects of in-depth analysis of the financial fraud of Blue Mountain Technology motivation, and put forward targeted preventive measures.