Occurrence Of Fraud Research Articles

HALAL IN THE FOOD INDUSTRY AROUND THE GLOBE

The concept of Halal is well understood and practiced Muslims. Muslims are restricted to only consuming foods that are certified as Halal. However, today, the consumption of Halal food is no longer regarded only as a religious obligation for Muslims, but is also sought after by non-Muslim society due to the rising health concern as Halal foods are often classified as ones that have high quality from the perspectives of safety and hygiene. The fact that there are already 1.9 billion Muslims in the globe is indisputable proof that the halal food sector is promising for both Muslim and non-Muslim participants in the industry. Many Muslim-minority countries, such as New Zealand, Canada, the United Kingdom (UK), Australia, the United States of America (USA), India, and Argentina are also exporting Halal foods to foreign countries as they believe that this can generate substantial revenue for them. Nevertheless, low awareness of the concept of halal, uncertainties regarding the ingredients used in the products, and misleading information on a product’s packaging are a few of the challenges in the Halal food industry. In order to popularize the concept of Halal to more non-Muslims, the authority, plays a significant role in this scenario by providing public information related to the concept of Halal as well as taking more stern actions in combating the occurrence of Halal food frauds.

Determinan Pencegahan Kecurangan Dalam Alokasi Dana Desa

The purpose of this study is to find empirical evidence regarding the effect of competence, morality, integrity, internal control and organizational culture on the fraud prevention in allocation of village funds. The sample in this study are obtained from 148 respondents from village officials in Denpasar. Multiple regression analysis is used to answer the hypothesis in this study. The results of the study find that competence, morality, internal control and organizational culture has a positive effect on fraud prevention. This finding indicates that village officials have responsibilities and want to apply the good village governance principles, transparent, and accountable. Integrity was not able to minimize the occurrence of fraud. The allocation of village funds has a vulnerability in its allocation in infrastructure development in the village. This study uses organizational culture as novelty because there are few articles that examine the allocation of village funds with organizational culture. For further research is expected to examine the characteristics of village heads that can affect the level of fraud prevention in village funds. The village head as the user of village funds is expected to be transparent and responsible in the allocation of village funds.

EVALUATING GOVERNANCE PRACTICES AND BUSINESS OPERATIONS IN NIGERIA: ATTENDANT RESPONSE TO FRAUD PREVENTION AND RISK MANAGEMENT IN THE COVID-19 PANDEMIC ERA

Despite the outcome of the COVID-19 pandemic onslaught on global economies that has negatively undermined the financial prowess of major markets in United States of America, United Kingdom, Germany, France, Austria, Canada, Spain, Italy, Nigeria, South Africa, Ghana et cetera, leading to loss of trillions of US Dollars, the need to uphold responsive financial sustainability among nations and businesses has been largely impaired by the prevalence of fraud, cyber crimes, mismanagement of scarce finance resources and external loan funds, bad leadership and poor oversight. Amid unprecedented increase in job layoffs, salary cuts, expenses cuts, robotic technologies embrace, bonuses suspension, promotions postponements, remote working embrace, price hikes, high inflation rate et cetera which have all culminated into heightened fraud occurrences and consequent fraud losses, fraud risk appear not to be proactively considered a top priority by the government and management of businesses in critical challenging COVID-19 pandemic economic downturn period as this. Deploying a descriptive approach, the study expressly evaluates the threat of COVID-19 pandemic upsurge on public governance and businesses with extant emphasis laid literally on attendant responses to fraud prevention and fraud risk management in Nigeria. Conceptualized schematic frameworks and widely recognized current statistics were utilised and evaluated to maximally envisage reliable response measures to fraud risk factors in the contemporary COVID-19 pandemic business environment in Nigeria. The study concludes by proposing possible actions (way forward) for policies development towards rescuing Nigeria and its business environment from the prevailing unfavourable situations..

Шахрайство і помилки за результатами аудиторських перевірок: причини їх виникнення і можливі наслідки

Introduction. Detection of errors, assumption of fraud facts, proof of distorted information and hidden true facts are among the objects of the auditor's research in the process of audit activity. Problem Statement. To date, the structure of fraud, classification, types of errors, and their dynamics have not been fully investigated; there is no clear structuring of the causes of fraud and errors; the trend of their change has not been fully analyzed. Purpose. To improve the categorical apparatus; to investigate and analyze the causes of their occurrence, possible consequences; conduct an analysis of the general trend of changes in the number of proven fraud facts by judicial authorities. Materials and Methods. In the research process, the following were used: actual data from audits; results of the National Development and Reform Commission of the Department of Accounting and Taxation of KKIBP. Methods used: generalization, systematization, comparison, critical analysis, grouping, evaluation, trend analysis. Results. The results of research on the nature of fraud and error are highlighted. The analysis of their structure, causes and possible consequences was conducted. Improved categorical apparatus: “fraud”, “error”. Analyzed trend changes fraud. Formed groups fraud . The results of research into the nature of the occurrence of fraud and errors are highlighted. An analysis of their structure, causes and possible consequences was carried out. The categorical apparatus of the concepts "fraud", "error" has been improved. The trend of changing fraud was analyzed. His groups have been formed. Conclusion. The grouping of fraud proposed by the authors will make it possible to identify new criteria for distinguishing (detecting) and classifying fraud, thereby improving management decision-making, which will provide a greater probability of knowing the object, and the identified causes of fraud during the audit will determine the selection of criteria for its classification. Based on the actual data of the State Statistical Service of Ukraine, the trend of decreasing the number of fraud cases has been proven. The classification of fraud and errors has, first of all, scientifically based and practical significance, which allows to build a clear system of knowledge about the latter as an object of research and to form the correct system of their detection and management.

Faktor yang Mempengaruhi Kecurangan Laporan Keuangan di Badan Usaha Milik Negara Indonesia

The research objective was to analyze empirically the influence of pressure, opportunity, rationalization and capability factors on fraudulent financial statements. Cases of fraudulent financial statements that caused substantial losses for many parties prompted research to be carried out. The object in this study is a State Owned Enterprise. The purposive sampling technique in this study resulted in 268 observations. The research method is quantitative, and the analysis used is logistic regression. The results showed that ROA had a negative effect on the occurrence of financial statement fraud, while the proportion of KI, auditor turnover, and CEO tenure did not affect the occurrence of financial statement fraud. Research contributes to various parties as a material consideration in assessing information that may influence the occurrence of fraudulent financial statements.
 Keywords: Fraud Diamond Theory; Return on Assets; Independent Commissioners; Auditor Changes; CEO Tenure

Sharia Compliance, Islamic Corporate Governance, and Fraud: A study of Sharia Banks in Indonesia

This study aims to examine the effect of Islamic Corporate Governance and Sharia Compliance on indications of fraud occurring in Indonesia’s Islamic Banks from 2016 to 2020. The independent variables are Islamic Corporate Governance and Sharia Compliance with the Proxy of Islamic Income Ratio and Profit Sharing Ratio. The dependent variable is fraud in Islamic Commercial Banks. The population in this study were all Islamic Banks registered in the Financial Services Authority in the period 2016 to 2020. The samples were selected using the purposive sampling method. In this study, there were 11 Islamic Banks with a 5 years research period so that the total sample used in this study amounted to 55. The analytical method used in this study was logistic regression which was processed using SPSS version 25. The results of this study indicate that the Islamic Corporate Governance variable has a positive influence on indications of fraud occurring in Islamic Commercial Banks, Sharia Compliance with the Proxy Profit Sharing Ratio has a negative influence on indications of fraud occurrence in Islamic Commercial Banks while Sharia Compliance with the proxy of Islamic Income Ratio does not affect the indications of the occurrence of frauds in Islamic Commercial Banks.

THE EFFECT OF AUDITOR CHARACTERISTICS ON ALLEGED FRAUD OCCURRENCE AND ITS IMPACT ON FINANCIAL STATEMENT FRAUD RISK ASSESSMENT AND AUDIT PROGRAM MODIFICATIONS

The goal of this study is to examine the relationships between the auditor's qualities and alleged fraudulent activity, as well as those between alleged fraudulent activity and fraud risk assessment and between fraud risk assessment and audit program modifications. The population in this study were auditors at Public Accounting Officer. Selection of samples in this population using purposive sampling method. The sample used in this study were auditors who worked at Public Accounting Officer. The analytical tool used in this study is Structural Equation Modelling which is run through the Partial Least Squares Structural Equation Modelling program. The results of the analysis in this study are the characteristics of the auditors that affect the alleged occurrence of fraud. This shows that the better the level of specialization of the auditor, the easier it will be for the auditor to detect earnings manipulation and misstatements in a company's financial statements. Fraud affects the initial fraud risk assessment. The existence of suspected fraud in the financial statements may affect the initial fraud risk assessment. If the allegations are true, the company is proven to have committed fraud. The initial fraud risk assessment has an effect on the modification of the audit program.

Implementation of Anti-Fraud and Mediation Strategies as Alternative Dispute Resolution in Islamic Banks: Approaches and Impacts

Abstract
 Along with the growth of Islamic banks, the level of problems faced by Islamic banks has also increased. One thing that should be observed is the occurrence of fraud in various forms. If this happens, fast and appropriate steps are needed so that fraud can be detected and the problem resolved early on because fraud that occurs if it is not immediately addressed and drags on, the potential for loss and harm to the community (customers) is very large and ultimately leads to on the loss of public trust in Islamic banks. Financial Services Authority Regulation No. 39/POJK.03/2019 concerning the Implementation of the Anti-Fraud Strategy, it is sufficient to regulate the strengthening of the internal control system and to balance it, a dispute resolution pattern is needed without eliminating the bank's obligation to report and supervise. mediation, which is actually hinted at in the Qur'an with the term Al Shulhu, is an alternative so that disputes can be simultaneously resolved. The mediation model offered is to mediate internally within banking institutions by independent mediators who are appointed and become members of the BPS (Sharia Supervisory Board). is through litigation institutions, namely the Religious Courts.

DETECTING CREDIT CARD FRAUD USING MACHINE LEARNING

Bank fraud is "The unauthorized use of an individual's confidential information to make purchases or withdraw funds from a user's account." E-commerce is growing rapidly, and the world is moving towards digitization, cashless transactions, the use of credit cards, the number of users is rapidly increasing, and with it the number of frauds associated with it. Due to the development of technology and the increase in the number of online transactions, fraud is also increasing, leading to huge financial losses. Therefore, effective methods to reduce losses are needed. In addition, scammers find ways to steal the user's credit card information by sending fake SMS and calls, as well as by masquerade attacks, phishing attacks, and so on. This article aims to use several machine learning algorithms such as Support Vector Machine (SVM), Decision Tree, Bayesian Belief Networks, Logistic Regression, k-Nearest Neighbor (Knn), and Artificial Neural Network (ANN) to predict the occurrence of fraud. In addition, we differentiate between the implemented supervised machine learning and deep learning methods to distinguish between fraudulent and non-fraudulent transactions.

AUDITOR INTERNAL DALAM PERSPEKTIF PERILAKU UNTUK KEBERHASILAN TUGAS AUDIT PADA INSTANSI PEMERINTAH DI KABUPATEN PEMALANG

This study examined the behavioral aspects of internal auditors commonly found in the implementation of internal audits. The qualitative with a case study approach was used. The results of this study were the behavioral aspects of internal auditors such as, professional accuracy in fraud prevention, the role of internal audit in Enterprise Risk Management. The behavior of professional care, motivation, competence, and independence roles were in the auditing, due to these behaviors embedded to the internal auditor that produced a quality audit and minimized the occurrence of fraud. The authority of the internal auditor has been formulated. The roles of the internal auditor have not been fully implemented because the quantity of assignments was not proportionally to the quantity of HR this led to still roles were not in accordance with their positions. The obstacles of audit such as difficulty obtaining data, the limited time, and the lack of communication.

Transparansi dan Akuntabilitas dalam Pengelolaan Dana Desa (Studi Kasus Desa Giri Sasak Kecamatan Kuripan)

This study aims to find out how the form of transparency and accountability carried out by the Giri Sasak Village Government in managing its finances, especially those sourced from village funds. Because the amount of village funds allocated every year is used by all parties, both the government above it and the community in the village. These principles are indispensable in the management of village funds in order to minimize the occurrence of corruption, fraud and abuse of power and budget starting from the planning, implementation, administration, reporting, and accountability stages.This study uses a qualitative method with a descriptive approach, and the data collection uses observation, interviews, and documentation. The method of analysis in this study, namely; data reduction, data presentation and then drawing conclusions. The results of this study indicate that the Giri Sasak Village Government in its financial management process is in accordance with the Minister of Home Affairs Regulation Number 20 of 2018 The conclusions of the research carried out can be seen through five stages. The stages of planning, implementation, administration, as well as reporting and accountability have been carried out in a transparent and accountable manner. This can be seen through every meeting that always involves elements of the community, providing access to information, recording income and expenses, and so on.

THE EFFECT OF PENTAGON'S FRAUD ON PROFIT MANAGEMENT

Purpose – The purpose of this study was to analyze the effect of pentagon fraud towards earnings management. The fraud pentagon consists of 5 factors that influence the occurrence of fraud, namely: pressure, opportunity, rationalization, capability, and arrogance.
 Design/methodology/approach – Multiple regression analysis was used to analyze the data and hypothesis testing was performed using a partial test (t test).
 Findings – The results of this study indicate that the five fraud pentagon factors, namely: pressure, opportunity, rationalization, capability, and arrogance have a positive and significant effect on earnings management. The results show that an increase in each factor will significantly improve earnings management in manufacturing companies in Indonesia in the 2018-2020 period.
 Originality – The population used in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) in the 2018-2020 period.
 Keywords: Arrogance, Capability, Earnings Management, Pentagon Fraud, Pressure, Opportunity, Rationalization
 Paper Type Research Result

Compensation structure impact on executive value judgment shift resulting in occurrence of fraud

PurposeThe purpose of this study is to examine whether executive compensation structure is a predictor of a value judgment shift facilitating fraud. The Raval (2018) disposition-based fraud model theorizes that in a fraud, a judgment shift occurs that results in an intentional action. Judgment shifts are influenced by intertemporal rewards, an executive compensation structure comprising salary (immediate reward) and delayed compensation in performance-based incentives.Design/methodology/approachUsing an archival data set consisting of frauds identified through Securities and Exchange Commission Accounting and Auditing Enforcement Releases, the compensation structure of executives involved in frauds is compared against the compensation structure of executives in a peer control group.FindingsThere was a significant difference in the intertemporal rewards of the compensation structures between the two groups, indicating that compensation structure presents intertemporal choices leading to a judgment shift that influences the deliberate action of fraud.Research limitations/implicationsThis study represents the first empirical test of the disposition-based fraud model using intertemporal rewards leading to judgment shift.Practical implicationsExecutive compensation structure should reduce intertemporal rewards for executives reducing judgment shifts that can result in risk of fraud.Originality/valueThis study addresses how executive compensation structure can result in fraud.

Backers Beware: Characteristics and Detection of Fraudulent Crowdfunding Campaigns.

Crowdfunding has seen an enormous rise, becoming a new alternative funding source for emerging companies or new startups in recent years. As crowdfunding prevails, it is also under substantial risk of the occurrence of fraud. Though a growing number of articles indicate that crowdfunding scams are a new imminent threat to investors, little is known about them primarily due to the lack of measurement data collected from real scam cases. This paper fills the gap by collecting, labeling, and analyzing publicly available data of a hundred fraudulent campaigns on a crowdfunding platform. In order to find and understand distinguishing characteristics of crowdfunding scams, we propose to use a broad range of traits including project-based traits, project creator-based ones, and content-based ones such as linguistic cues and Named Entity Recognition features, etc. We then propose to use the feature selection method called Forward Stepwise Logistic Regression, through which 17 key discriminating features (including six original and hitherto unused ones) of scam campaigns are discovered. Based on the selected 17 key features, we present and discuss our findings and insights on distinguishing characteristics of crowdfunding scams, and build our scam detection model with 87.3% accuracy. We also explore the feasibility of early scam detection, building a model with 70.2% of classification accuracy right at the time of project launch. We discuss what features from which sections are more helpful for early scam detection on day 0 and thereafter.

PENGARUH WHISTLEBLOWING, SPIP, GOOD GOVERNANCE, DAN KOMPETENSI TERHADAP PENCEGAHAN FRAUD DANA DESA

“Fraud is an act against or violates the law by people from within or from outside the organization, with the intention of obtaining personal or group benefits, directly or indirectly harming other parties. In an effort to minimize the occurrence of fraud, a preventive measure is needed, namely the prevention of fraud. Fraud Prevention is an action or effort to prevent or restrain someone from committing fraud that can be detrimental. This study aims to determine the effect of the whistleblowing system, the government's internal control system, good government governance, and the competence of the village apparatus on preventing fraud in the management of village funds. This research was conducted at the Village Office in East Denpasar District. The sample in this study consisted of 56 village officials. The sampling method used is the saturated method.. The results showed that the variable whistleblowing system, government internal control system, good government governance, and village apparatus competence had a positive and significant effect on preventing fraud in the management of village funds”.

PENGARUH FRAUD PENTAGON DALAM MENDETEKSI RISIKO KECURANGAN PELAPORAN KEUANGAN

Purpose this research aimed to determine the effect of the pentagon fraud in detecting the risk of fraudulent financial reporting in case studies of consumergoods industrial sector companies listed on the Indonesian stock exchange in 2018-2020. Fraud pentagon has several factors that influence the occurrence of fraud, Pressure is proxied by (financialstability, financialtarget, externalpressure) Opportunity (natureof industry, ineffective monitoring) Rationalization (Change in auditor), Competence (change of director) and Arrogance (frequent number of CEO). The F-score model is used in this study to see the potencial for fraud in financial reporting. The method used for sample selectioninthis study is purposive sampling, with a total sample of 108 companies for 3 years. Hypothesis testing is done by usingmultiple linearregression using SPSS 21.00. Theresults ofthis study indicate that financial stability, nature of industry, ineffective monitoring, change in auditors and change of directors have no significant effect on fraudulent financial reporting, external pressure and frequent number of CEO have a negative and significant effect on fraudulent financial reporting, while financial targets havea positive effect and significant to fraudulent financial reporting

PENGARUH WHISTLEBLOWING SYSTEM, GOOD GOVERNMENT GOVERNANCE DAN EFEKTIVITAS PENGENDALIAN INTERNAL TERHADAP PENCEGAHAN KECURANGAN DALAM PENGELOLAAN DANA DESA

In preventing fraud, the management of village funds requires supervision, appropriate strategies and firm policies so as to minimize the occurrence of fraud. This study aims to determine the effect of the Whistle-Blowing System, Good Government Governance, and the Effectiveness of Internal Controls on the prevention of fraud in the management of village funds. The population in this study were all employees of the Village Government Office in North Denpasar district. The samples in this study were 72 people who were determined by purposive sampling technique and tested using multiple linear regression analysis techniques. The result of this study, Whistleblowing system has a positive and significant, Good Government Governance has a positive and significant, The effectiveness of internal control has a positive and significant effect on fraud prevention.

SCORRE approach as an instrument for detecting fraudulent financial reporting

This study aims to analyze S.C.O.R.R.E. (stimulus, capability, opportunity, capability, cooperation, and ego) as the cause of financial statement fraud. The study was conducted on B.U.M.N. companies in Indonesia as a population with published financial statement analysis units with a total of 122 as samples obtained by purposive sampling technique after being selected for the period 2014-2018 (five years). The Binary Logistics regression technique is used in analyzing data with the dependent variable using a nominal scale (0-1) as a measurement of financial statement fraud. The study concludes that not all measurement dimensions are predicted to affect the occurrence of fraud in financial statements, while measurements using other dimensions prove a significant influence on the event of financial statement manipulation. The study results provide a reference to the potential for preventing financial statement fraud by identifying several measurement dimensions that can trigger financial statement fraud. Research using Binary Logistics regression would be better confirmed through observation, either by interview or primary data that supports and predicts the results of the analysis that was not carried out in this study, so the conclusions obtained have not fully concluded the existing phenomena.

Application Analysis of Block Technology Based on Block Chain Computer Model in the False Identification of the Catalog List of the Financial Department of Multinational Companies

The financial data of some listed companies is not transparent enough, especially in financial-related management and program planning. In addition to legal and ethical constraints, with the continuous upgrading of blockchain technology, it is possible to explore the use of blockchain technology to lower the threshold for a certain number of investors to participate in corporate financial governance. Jointly supervising the capital flow of listed companies can ensure the safety of funds and improve the efficiency of capital use, thereby solving the problem of financial fraud of listed companies to a certain extent. The four core features of blockchain technology include decentralized distributed ledgers, consensus mechanisms, asymmetric encryption, and smart contracts. Exploring the feasibility and embedding path of chain technology in the capital supervision of listed companies will help to solve this problem. The integrated application of blockchain technology plays an important role in new technology innovation and industrial transformation. According to the unique technical characteristics of blockchain technology such as decentralization, nontampering, and traceability, combined with its application scenarios in the accounting field, it is hoped to use blockchain technology to solve problems such as information asymmetry and easy tampering of financial amounts from the source. Therefore, effective analysis can reduce the occurrence of financial fraud and fraud in listed companies, and blockchain technology has become a new way to prevent financial fraud in listed companies. This paper analyzes the classification and basic characteristics of blockchain, and studies the access mechanism and voting rules of candidate nodes based on the private chain architecture of the Raft distributed protocol to ensure the authenticity and real-time of financial information of listed companies and financial decisions. Improving the difficulty of financial fraud can provide good social and economic benefits.

Why do employees commit fraud? Theory, measurement, and validation.

Previous research on corporate governance has extensively explored the motives of corporate fraud. However, this research has paid little attention to employees, the real executors of fraud, resulting in the psychological and behavioral decision-making process of employees who commit fraud in enterprises becoming a “black box” that has not yet been opened. Based on the theory of planned behavior, our study integrates the existing research findings on driving factors of employee fraud and anti-fraud practical experience, extracts the key factors of employee fraud motive, and develops a multidimensional scale of employee fraud motive. The exploratory factor analysis (EFA) generates three subscales, comprising 14 items, measuring attitude, subjective norm and perceived behavioral control of employee fraud motive. The confirmatory factor analysis (CFA) supports the reliability, discriminant validity and convergent validity of the new scale. The multiple regression results show that the score of employee fraud motive is positively correlated with the amount of employee fraud occurrence, indicating that the predictive validity of the scale holds. Overall, the scale developed in our study displays good reliability and validity, and is worth spreading.