Occurrence Of Fraud Research Articles

TEORI FRAUD PENTAGON dan DETEKSI KECURANGAN PELAPORAN KEUANGAN

The purpose of this research is to investigate whether the fraud pentagon theory predictors, namely: Pressure, Opportunity, Rationalization, Capability and Arrogance able to explain the probability of financial statement of fraud occurrence in Indonesia. The results show that: only Pressure and Rationalization elements can define the likelihood of financial statement fraud. The Capability and Arrogance proxies proposed in this research are not proven to explain the opportunities for financial statement fraud. This research finding shows that the fraud pentagon theory still needs testing in different contexts.

Dangers and Attacks on Digital Information in the Public Safety Space

The need for security is one of the most fundamental human needs. The scale of the threats posed by cybercrime to IT systems is large. It is mostly the result of the high vulnerability of IT systems to threats, the high risk of data theft, a very high occurrence of Internet frauds, the low efficiency of the systems protecting computers and networks, and an inadequately low level, as related to the existing threats, of security measures utilized by the users of IT systems. In this article, the authors discuss the underestimated problem of crime on the Internet and its nature in today’s reality.

Do Perceived Pressure and Perceived Opportunity Influence Employees’ Intention to Commit Fraud?

Fraud has always remains an issue for organisations throughout the globe due to the increasing number of fraud occurrences over the years which resulted to the increasing amount of losses. Despite the large amount of efforts by organisations through internal control implementation and the amount of money spent to combat fraud, the numbers of fraud occurrences are still increasing. This study examines the employees’ intention to commit fraud. Specifically, this study examines the influence of perceived pressure and perceived opportunity on employees’ intention to commit fraud. In addition, this study examines the effect of capability in moderating the influence of perceived pressure and perceived opportunity on employees’ intention to commit fraud. Using online questionnaire on 158 employees from various sectors, this study shows that the employees have a low intention to commit fraud. This study also shows an existence of linear relationship between perceived pressure and perceived opportunity on employees’ intention to commit fraud. Consistent with previous studies, this study found that capability of the employees does not influence them to commit fraud. The findings in this study assist the employers to adopt appropriate strategies in preventing and detecting fraud possibility among their employees.

Corporate Governance Attributes in Fraud Detterence

The failures of corporations such as Enron, WorldCom and HIH Insurance, to name but a few, have heightened investor awareness of the need to not only evaluate company performance, but also to consider the possibility that financial statements may not be a true reflection of company results, as fraudulent activities may have occurred during the reporting period. Since parties who are outside of the firm do not have access to pertinent information, they have to rely upon published financial and non-financial data to form an opinion regarding performance and/or the risk that fraudulent activities may have occurred. The prior literature shows a relationship between weak corporate governance and fraudulent activities, although most if not all of this research relates to Western economies. The differences in institutional setting e.g. cultural values and legal environment in Malaysia would not give the same findings with the study in western economies. Composing of many ethnicities, Malaysia is a multicultural country. With each ethnic group upholding its own culture, values and belief, businesses are conducted according to each ethnic’s culture. The results of this study could shed some light on the influence of institutional setting regarding corporate governance. Companies that were charged with accounting and auditing offences from year 2003 to 2007 were selected as the fraudulent samples. Data was collected from the years these companies were charged with fraud and the year prior to that. Logistic regression analysis was carried out to determine the significant differences between fraudulent and non-fraudulent companies with respect to corporate governance characteristics. The results indicated that the size of the board and the percentage of institutional shareholdings had significant relationships with the likelihood of corporate fraud occurrences consistently across the two-year period studied. The results of this study will assist public, corporate and accounting policy makers in formulating more effective corporate governance mechanisms.

PENGARUH KESESUAIAN KOMPENSASI DAN KULTUR ORGANISASI TERHADAP PERSEPSI PEGAWAI ATAS FRAUD DI INSTANSI PEMERINTAHAN KOTA MANADO

This study aimed to explore the employee perceptions of fraud in government agencies and the factors that influence the occurrence of fraud . The variables used in this study are the compliance of compensation and culture of organization as independent variables and fraud in government agencies as the dependent variable. Samples used in this research as many as 60 respondents from government agencies in Manado, especially in the Regional Financial and Asset Management Agency and the Office of Public Works and Spatial Planning of the City of Manado. Sampling technique uses purposive sampling and data collection used questionnaires. The analysis in this study used multiple linear regression analysis with the help of SPSS version 23 application. The results showed that, there is no influence of the appropriateness of compensation by fraud in Manado City government agencies, and there is a significant negative effect on fraud in Manado City government agencies.

Optimalisasi Peran Sistem Pengendalian Intern dalam Mencegah Terjadinya Penyelewengan Kas dan Aset pada Lembaga Pendidikan Non Pemerintah (Swasta)

The purpose of this study is to analyze how to optimize the role of internal control system in preventing the occurrence of fraud on cash and assets in non government or private educational institution. Tool of analyzed used in this research is internal control system according to COSO definition and combined with internal control system according to Government Regulation Number 60 Year 2008 with 5 internal control component that is; 1) Control Environment, 2) Risk Assessment, 3) Control Activity, 4) Information and Communication and 5) Monitoring. The result of the research shows that optimizing the role of the internal control system is very helpful to the management in managing the finances and assets owned so as to prevent the occurrence of fraud on the cash and assets in private educational institution. The expectation of the future by optimizing the role of internal control system on cash management and assets in non government/or the private educational institution will be more efficient and effective which will ultimately improve the quality and accountability of the private educational institution.

Analysis of employee and management fraud in Tanzania

PurposeThe study aims to explore specific motivations, rationalizations and opportunities that are involved in the occurrences of both employee and management fraud in the context of an emerging African country, Tanzania. It builds and extends from the fraud triangle theory.Design/methodology/approachA survey was developed and administered to 114 participants who had witnessed, had examined or had been involved in fraud resolutions. The participants included fraud examiners, business managers and owners, victims, auditors, lawyers, and law enforcement agents. The data collected were analysed using descriptive analysis, principal component analysis and correlation analysis.FindingsThe results revealed six motivation factors that incentivize employees and managers to engage in fraudulent behaviours. These are business financial strain, social incentives and pressure, greed, operating problems, internal pressures and malevolent work environment. In addition, fraudsters rationalized their behaviour through five significant neutralization techniques identified as social weighting, transferring of blame, denial of injury, attitude and prior fraud history. Lastly, victim organisations were identified to have three main fraud opportunities: poor control environment, inadequate control activities and circumstances that allowed collusive behaviour among fraudsters.Research limitations/implicationsWhile the study attempted to explore the motivations, opportunities and rationalizations from the perspectives of the fraud-fighting professionals and witnesses, their views and suggestions might be different from the actual known fraudsters or incarcerated individuals.Practical implicationsBusiness organisations, fraud-fighting professionals and general community must understand the factors behind fraud occurrences, so proper measures may be taken to limit the frequency and amount of fraud losses.Social implicationsCreation of public awareness and dialogue necessary for the prevention, fighting and deterrence against all forms of fraud.Originality/valueDespite the occurrences of many scams in both public and private sectors, limited studies exist as to the triggers behind fraud occurrences in the context of the developing countries and whether these triggers are the same as in other contexts. This study is an attempt to fill this gap.

Occurrence of occupational fraud in family businesses: A Pitch

Idea generation is easy but getting a refined and organized form for that idea is a complex process. This letter outlines the utilization of Faff (2018) pitching research framework for developing a personal original pitch. The pitching research template is intriguing as it helps young researchers like myself in determining the core components of their research topic. This “Pitching Research Letter” features my personal thoughts on pitching research and the application of the pitching template to develop my personal pitch on “Occupational Fraud in Family Businesses” using the Fraud Triangle.

The effect of auditor experience, type of personality and fraud auditing training on auditors ability in fraud detecting with professional skepticism as a mediation variable

The occurrence of fraud or intentional actions that do not appear at the time of auditing will have a negative impact on financial reporting. Along with the development of the times, fraud is increasingly prevalent. And the greater the public demand that the auditor can detect fraud, is something that the auditor must respond to. Data collection was carried out using a questionnaire, with 71 respondents consisting of all auditors working in the Public Accounting Office (KAP) spread across Bali Province. Respondents were selected based on the purposive sampling method. The analysis technique used is Partial Least Square (PLS). The results showed that audit experience, personality type, cheating audit training, and professional skepticism had a significant positive effect on the auditor's ability to detect fraud. And skepticism of being able to become a mediator is partially mediated by audit experience variables, personality types, and fraud audit training on the auditor's ability to detect. Future studies are expected to be able to expand the scope of the research area and use other variables that have not been used in this study.

The effects of reducing opportunity and fraud risk factors on the occurrence of occupational fraud in financial institutions

Internal fraud has been attributed as one of the contributing factors for serious banking crises. Given that opportunity is the pre-eminent cause of white-collar crime, this study attempts to measure the relationships between the perceived ‘opportunity reduction’ and other fraud risk factors with regard to the ‘likelihood of fraud occurrence’ in financial institutions. For analysis, the study gathered 395 survey responses from South Korean financial sector. The results of logistic regressions of the study highlight that how to operate control mechanisms combining prevention and deterrence measures (the qualitative aspect of internal control), is more important for preventing fraud than the mere existence of many anti-fraud controls. In addition, the study discovers that the employees of the Korean financial institutions view that the risk of management override of controls is a more critical risk than collusion in their organization.

PERANAN SISTEM INFORMASI AKUNTANSI DALAM PEMBELIAN BAHAN BAKU DAN PEMBAYARANNYA PADA PT. FORMITRA MULTI PRAKARSA

One of the many factors that would make a company to remain competitive in the market is an implementation of an accounting information system that goes well at the company, in order to minimize the occurrence of fraud, particularly in raw material purchasing cycle, and disbursements of transactions which is related to the purchase of raw materials . This research uses a descriptive qualitative method. Elements in this study using the elements of internal control, the structure of the organization, authorization, and recording system, sound practices and quality employees in accordance with its responsibilities. To determine whether the information system is effective or not is by using the COSO (Committee of Sponsoring Organizations of The Treadway Commissions)method. There are 5 components of COSO which is: control environment, risk assessment, information and communication, monitoring, and control activities. After analyzing PT Formitra on that aspect, there is only one factor that is a weakness to the company, which is the absence of separation of functions between the recording of the inventory and control function (protecting) of the inventory.

The Responsibilities of Financial Fraud Activities Among of Auditor in the Business Organizations

The study paper mainly focuses on the financial fraud of the issue either auditors can act as a first respondents or not. As first respondents, their primarily responsible is to clarify the fraud, stabilize situation and prevent for further losses. Moreover, third parties are expected to act as first respondents too, as when there are financial fraud or other illegal act is suspected during the audit. Hence, in conducting an audit, auditors play a role in practice guidelines that must be wary occurrence of financial fraud and other illegal acts. Any first respondents must rely on electronic format and digital forensics to collect and identify such electronic information not the original printed documents.

Fraud analysis in micro finance institution

Islamic microfinance institutions are financial institutions that carry out operational activities based on sharia principles. One of them is the Baitul Maal wa Tamwil (BMT), this institution serves savings and funding to the middle and lower communities by picking up the ball. With this system, it will be an opportunity for human resources (SDI) who are less loyal and responsible with their institutions to commit fraud or irregularities. Therefore, this study aims to find out how triangle fraud affects the occurrence of fraud in BMT. The research method uses independent path analysis with a sample of 84 respondents from the marketing department, supervisors, and financing managers. The results of this study are that Rationalization and pressure have a positive and significant effect on the occurrence of fraud, while the opportunity does not have an influence on the occurrence of fraud.

MENDETEKSI PERILAKU FRAUD LAPORAN KEUANGAN DENGAN THEORY OF PLANNED BEHAVIOR (STUDI EMPIRIS PADA INDUSTRI PERBANKAN)

This study aim to examine factors that determined the intention towards fraud in financial statements in banking industry. Based on UU Perbankan No. 10 tahun 1998, banking industry are perceived to be safeguarded from fraud occurrences. On the other side, this study intends to examine the relevance of the theory of planned behavior in measuring intention and behavior towards fraud. A total of 158 questionnaires were collected. Structural equation modelling was used to test the model. The Findings indicates that attitude, subjective norms, and perceived behavioral control are influenced intention to fraud financial statements with R2 value 0.92. Thus, intention influenced behavior with R2 value 0.89. This study proved that if respondents are favor of financial statements fraud, so their intention strongly committed to financial statements fraud. Therefore, more positive intention to commit fraud leads behavior in financial statement fraud.

The Impact of Financial Fraud on Technological Innovation: Myopia, Job Security, and Loss of Trust

Given the profound effects of financial fraud on corporate managers, inventors, and cultures, this paper investigates how financial fraud influences technological innovation at both firm and inventor levels. We find that the occurrence of financial fraud is negatively related to firms’ and inventors’ innovation outputs, both quantitatively and qualitatively. This finding is attributed to the negative impact of fraud on individual inventors’ productivity and the number of inventors deployed. Moreover, cross-sectional tests suggest that such impact is more pronounced when top-level management’s tone is more myopic, when fraud is more observable to employees, or when trust between inventors and firms is lacking. Our results hold when we implement an instrumental variable regression based on the SEC’s past enforcement activities and when we include various controls that reflect alternative explanations. In conclusion, our study implies that financial fraud not only hurts shareholders but also damages valuable human capital and results in “brain drain”.

Accounting fraud: A literature review

This paper explains the main features of accounting fraud across an examination of the current literature by putting the environment and the different ways to prevent fraud under a microscope. The study analyses in five steps how corporate governance, ethical behaviour, accounting manipulation, detection techniques and forensic accounting are related to fraud. After having reviewed the most relevant literature on the topic, it emerged that in order to avoid fraudulent behaviour in a company, it is important, mostly, to establish an ethical education between employees and executives. Therefore, this article examines how governance elements such as board, CEO, or remuneration, influence the occurrence of fraud inside companies. Last but not at least, it has been seen how the role of forensic accountant has revealed itself as being very useful for his varied expertise, which have been analysed, and has been positioned as one of the top 20 future jobs.

ANALISIS SISTEM PENGENDALIAN INTERNAL (SPI) TERHADAP SISTEM AKUNTANSI PEMBERIAN KREDIT MODAL KERJA PADA PT. BANK SULUTGO CABANG PEMBANTU SAM RATULANGI

In carrying out a credit product, especially working capital credit at a particular bank, there is an accounting system used to process data so that it can obtain financial information needed by the parties concerned. Therefore, to minimize the occurrence of errors and fraud in an accounting system for working capital credit, a good and adequate internal control system is needed. The internal control system is a system that greatly influences the success of the company in carrying out its policies. Therefore, it is necessary to have a system of internal control, especially with respect to the accounting system in providing working capital loans to reduce fraud that will result in losses to the company. This study aims to analyze how the internal control system of the accounting system in providing working capital loans at PT. Bank SulutGo especially in the Sam Ratulangi support branch. The method used is descriptive qualitative. And the results show that PT. Bank SulutGo's Sam Ratulangi subsidiary branch has implemented internal control components well and adequately. And supported by policies and procedures for providing good working capital loans that are also applied by the company.Keywords: Accounting system, internal control system, and working capital credit

INTERNAL CONTROL SYSTEM: SOX-REQUIREMENTS APPROACH TO ASSESSMENT

The European integrational vector of Ukraine's development significantly enhances the requirements for the quality of enterprises` financial reporting that are subjects of public interest, and obliges them to build an effective system of internal control due to the open economy conditions and business chalanges, the availability of a reliable information environment, which would create unquestionable guarantees of investment preservation, becomes significant for the owners of invested capital. By adapting the best practice of doing business, domestic business entities seek to improve the reliability of their internal control system through the usage of tools that have been tested by many years successful business in developed countries. Particularly, under these conditions, the provisions of the Sarbanes-Oxley Act, whose previous perception was focused directly on compliance with the law, deserve merit, and participation in risk management was merely an idea. Today, compliance with the law is an important part of the company's risk management system. In the conditions of doing business in an open economy, this objective can only be achieved if the reliable control environments of the company represented by its internal control system are set up. Domestic methods for assessing internal control systems do not take into account the enterprises` needs to undergo SOX control and sjould be improved. The concept of constructing a matrix of internal control system assessment, which includes Control Matrix, Assessment, Remediation and Testing, is developed. The said units of the matrix of the internal control system assessment cover the homogeneous nature of the group of business processes depending on the factors that may affect the enterprise control environment. Each of these blocks can be expanded, depending on the size of the enterprise. The proposed development allows organizing the qualitative and operational work of the internal control system, which will contribute to the effectiveness of making managerial decisions and aimed at preventing the occurrence of fraud.

Fraudulent Corporate Transactions: Reworking Regulating Silos

Recent times are witness to corporate frauds of various kinds and dimensions. They effect companies and financial entities of all size, sector and region and have taken for surprise the law enforcement agencies of the very advanced and developed economies as well as the developing or the developed ones, with high growth rate. Stringent penal provisions in the capitalist west was unable to contain the malaise of fraud. Post liberalization of the economy, the occurrence of corporate fraud has increased manifold in India. The regulations introduced often lagged behind the pace of corporate development. In fact, the system of regulating financial institutions in India was always highly fragmented, outdated and ineffective. It managed regulations with the help of multitude of agencies, self-regulatory organizations and state authorities who share oversight of the financial system under a sort of adhocism, often symptomatic of a framework uncomfortably saddled with gaps in regulatory silos, legal complexities and institutional inefficiencies.

Islamic Corporate Governance, Islamicityfinancial Performance Index And Fraudat Islamic Bank

This research empirically tested the factors of fraud occurrence in sharia banks based on fraud triangle theory, which is motivation, opportunity and rationalization must be fulfilled for the occurrence of fraud. This research develops indicators as a proxy of motivation, opportunity and rationalization. Factors tested in this research is the Islamic Corporate Governance to fraud with the Islamicity Financial Performance Index as a mediator in sharia banks 2012-2016.This research using quantitative method with secondary data. Data are obtained from annual reports published by Islamic banks. The test is done by path analysis and processed using SPSS. The result of research shows that Islamic Corporate Governance has no effect to Islamicity Performance Index, Islamic Income Ratio, Profit Sharing Ratio and Islamic Investment Ratio (Islamicity Financial Performance Index) influence to Fraud, Islamic Corporate Governance has no effect to Fraud, and Islamic Income Ratio, Profit Sharing Ratio and Islamic Investment Ratio (Islamicity Financial Performance Index) does not mediate the influence of Islamic Corporate Governance to Fraud on Islamic Bank or it can be said that there is no mediation. This research shows that factors based on fraud triangle are effective for use in explaining fraud.