Asia Pacific Fraud Journal (APFJ - Association of Certified Fraud Examiners, ACFE)
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303 research outputs found
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Whistleblowing Intention: The Impact of Commitment and Ethics
No full textAs profit-making businesses, banks have goals for achieving profits to draw in investors and compete with rivals. Setting high goals compels all workers to put in more effort than is necessary, which might lead to fraud as a justification for target completion. It is believed that the degree of bank fraud can be decreased by putting in place a whistleblower mechanism and practicing excellent corporate governance. The factors that can influence employee intentions to whistleblow include professional commitment, organizational commitment and ethical behavior. Financial services firms are anticipated to gain knowledge from this study about the variables that may affect employees’ intentions to be whistleblowers. 110 employees of Bank XX participated in this study as respondents. The parameters for the research sample were established using judgment sampling and purposive sampling procedures. Since the primary data was gathered through the online distribution of surveys using the Google Form link, the study data type falls within the quantitative data category. To gauge respondent’s opinions and assessments, a Likert scale with the following options must be used: (1) strongly disagree to (4) strongly agree. The descriptive method and the verification method using the SEM-PLS approach are the analysis techniques employed. According to the study’s findings, ethical behavior and organizational commitment were found to be able to raise Bank XX workers’ intentions to engage in whistleblowing; professional commitment, on the other hand, had no discernible impact on these intentions. Therefore, it can be said that despite their professional dedication, Bank XX workers are not interested in implementing whistleblowing procedures. This is because they value their loyalty and are afraid of losing their employment, which is their primary source of incom
The Influence of Conflict of Interest and Organizational Culture on External Auditor Audit Quality
No full textExternal auditors play a crucial role in ensuring the reliability of financial statements by accumulating and evaluating evidence and providing an independent opinion. However, audit quality can be affected by conflicts of interest and organizational culture. This study examines the impact of conflicts of interest and organizational culture on audit quality, drawing on role theory and attribution theory. Data were collected through questionnaires distributed to external auditors in the Jakarta area, resulting in a total of 46 respondents. SmartPLS 4 was used for the analysis. The analysis results indicate that conflicts of interest and organizational culture affect audit quality. These findings underscore the importance of managing conflicts of interest and fostering a strong organizational culture to enhance audit quality. This study contributes to the accounting literature by providing empirical evidence on the significance of these factors in ensuring high-quality and independent audit practice
Enhancing Vendor Selection Integrity: Integrating Fraud Heptagon Theory Framework in the Context of Fraud Prevention
No full textThis study examines how financial pressure, rationalization, opportunity, arrogance, competence, culture, and religiosity influence fraudulent behavior in vendor selection processes using Fraud Heptagon Theory, making it suitable for analyzing potential fraud in Indonesia, where culture and religion are emphasized. Interviews with procurement committee members reveal that sufficient income and strong governance practices can mitigate fraud. However, rationalization, perceived opportunities, and arrogance increase fraud risk. Competence alone does not significantly impact fraud, but it can when combined with ethical training. A strong ethical culture and high religiosity are associated with lower fraud propensity. The findings suggest that aligning incentives, enhancing ethical training, implementing robust internal controls, fostering an ethical culture, and integrating religious values can reduce fraud risks. The implication of this study is to gain a deeper interpretation of the interplay of these factors preventing fraud and maintaining integrity in vendor selection
Addressing Corruption in All its Forms Through Sustainable Development Goals: A Bibliometric Analysis
No full textCorruption is a significant obstacle to sustainable development, weakening governance and public trust while deepening poverty and inequality. This paper examines global views on fighting corruption in all its forms through the lens of the Sustainable Development Goals (SDGs). Using bibliometric analysis in VOSviewer, the study reviews 112 scholarly articles across diverse disciplines to identify key trends, influential studies, and gaps in current research. The findings indicate an increasing academic interest in the relationship between corruption and sustainable development, with notable contributions from the UK, the US, and South Africa. The analysis underscores the crucial role of anti-corruption initiatives, particularly those aligned with SDG 16, in advancing the broader SDG agenda. By identifying emerging themes and overlooked areas, this study provides insights that can inform future research and strengthen cooperation among governments, civil society, and the private sector to promote transparency, accountability, and effective governance
Reading Between the Lines: Incorporating Text Mining and Machine Learning in Financial Fraud Detection
Full text linkNotwithstanding rigorous oversight in the Indonesian capital market, the manipulation of financial reports continues to occur. This study examines the potential for employing machine learning (ML) models, which utilize linguistic features and financial ratios, in effectively detecting deception or manipulation. Drawing upon publicly listed Indonesian companies as the samples, this research validates the predictive capabilities of the Beneish M-Score, confirms the occurrence of negative language in fraudulent reports, and demonstrates the superiority of the Gradient Boosting ML model in identifying anomalies within financial and textual data. The study distinctively adapts to Indonesian-language annual reports, thereby addressing a gap in the linguistic-based fraud detection literature. These findings not only advance our comprehension of how linguistic features and financial ratios provide practical tools for fraud detection, thereby preparing the academic and professional community in this domain
Work Environment Factors and Retaliations Against Whistleblowing Intention
Full text linkThe Whistleblowing is a powerful tool for detecting fraud. However, according to the 2024 Corruption Perception Index, Indonesia’s score has declined significantly compared to previous years, showing no signs of a full recovery. This, suggesting a weak intention to whistleblow in Indonesia. This study aims to identify factors contributing to this weakness using the Partial Least Squares (PLS) method. The research considers both intrinsic and extrinsic factors, represented by rationalization, fear of retaliation, reward/punishment systems, work environment, and internal system responsiveness. The findings reveal that fear of reprisals, the work environment, and internal system responsiveness significantly influence whistleblowing intention
Rational Choice Theory as a Philosophical Basis for Voluntary Disclosure of Anti-Fraud Policy
No full textThe disclosure of anti-fraud policies by non-financial companies in Indonesia is still voluntary, unlike that of financial and banking companies that which are required to make such disclosures. In the context of voluntary disclosure of anti-fraud policies, rational choice theory assumes that companies will make disclosure if the benefits are perceived to outweigh the risks. However, in reality, non-economic motives additionally take a role in decisions pertaining to this disclosure, in addition to rational ones. This research criticizes the rational choice theory by exploring whether voluntary disclosure decisions by non-financial companies are genuinely rational or influenced by significant non-economic factors such as moral, cultural, and corporate image. This research provides a new perspective for non-financial companies in Indonesia to consider non-economic factors in decision-making regarding the disclosure of anti-fraud policies and to develop views in the philosophy of economics on the importance of social and moral factors in economic decision-making about transparency and accountability. This study concerns the economic rationality assumption in the voluntary disclosure of anti-fraud measures by non-financial enterprises in Indonesia, emphasizing the importance of social and organizational culture elements. The findings indicate that a purely rational approach may not always be effective, underlining the importance of integrating ethical ideals and economic philosophy to promote transparency motivated by moral principles rather than financial gain
The Role of Organizational Governance and Environmental Social Performance on Fraud Tendency
Full text linkThis study aims to analyze the relationship between the independent board of commissioners, managerial ownership, and social environmental performance towards fraud. The sample of this research consists of 121 companies from the Asia Pacific Emerging Market and listed on Bloomberg’s database from 2016 to 2022. The multiple regression analysis is conducted to examine the relationship between the independent board of commissioners, managerial ownership, and social environmental performance towards fraud. The findings of this study showed that independent boards of commissioners and managerial ownership don’t affect fraud, but social-environmental performance does. This study contributes to the existing literature by providing evidence on the global market and how the elements of corporate governance and social environmental performance can affect fraud. This study also supports the stakeholder theory, which proposes that when a company makes social environmental performance a strategic orientation of the company, then fraud can be minimized because the company is not just responsible for itself but also for the other stakeholders
Factors that Shape an Honest and Ethical Culture
Full text linkThis research aims to identify the factors that shape an honest and ethical culture in the context of fraud prevention. It is important to conduct this research as unethical and dishonest incidents often occur all over the world. The sampling technique was conducted on employees currently working and with work experience in Indonesia, resulting in 200 respondents. Data analysis was performed using Structural Equation Modelling (SEM). The results of this study found that only the tone at the top and effective reward and punishment significantly influenced the formation of an honest and ethical culture. Meanwhile, proper employee recruitment, communication of expectations, and a positive work environment did not significantly impact. This research contributes to stakeholders, especially management considerations, to form an honest and ethical culture within a company