Asia Pacific Fraud Journal (APFJ - Association of Certified Fraud Examiners, ACFE)
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VIOLATION REPORTING SYSTEM AS THE IMPLEMENTATION OF FRAUD CONTROL PLAN IN THE PUBLIC SECTOR (A Study at Dr. Moewardi Hospital)
Get PDFThe purpose of this research is to describe the implementation of violation reporting system at Dr. Moewardi Hospital. The implementation of violation reporting system will be evaluated based on the characters as stated by Zimbelman (2014): anonymity, independency, access, and follow-up. This research is a qualitative research referring to theoretical proposition. The data are collected by in depth interview with the manager of violation reporting system and the employees of Dr. Moewardi Hospital. The result shows that the violation reporting system at Dr. Moewardi Hospital has been implemented well and can help prevent fraud
FRAUDULENT FINANCIAL REPORTING DETECTION USING BENEISH M-SCORE MODEL IN PUBLIC COMPANIES IN 2012-2016
Get PDFThis study aims to examine the ability of the Beneish M-Score model to detect fraudulent financial reporting. The Data research sample consisted of 55 manipulator companies that were sanctioned and fined by the Financial Services Authority due to violating POJK number X.K.1; X.K.4; IX.E.1; IX.E.2 and VIII.G.7 during 2012-2016 and 55 non-manipulator companies as comparison companies. The results showed that 28 of the 55 manipulator companies were correctly classified as fraud firms by 50.91%, while for the category of non-manipulator companies, there were as many as 60% or 33 of the 55 companies correctly classified as non-fraud firms.The results also identified three M-Score variables that were often manipulated by manipulator and non-manipulator companies namely Sales and General and Administrative Expenses Index (SGAI), Depreciation Index (DEPI) and Asset Quality Index (AQI), but two other variables namely Days Sales in Receivables Index (DSRI) and Sales Growth Index (SGI) are considered unable to detect fraudulent financial reporting. In addition, based on the results of the logistic regression test, the eight Beneish M-Score variables have no effect on the detection of fraudulent financial reporting. The Beneish M-Score model is an easy and cheap way to detect possible fraudulent financial reporting, this can be applied by investors before determining their investment decisions
THE PROBLEM WITH STATE FINANCE PLANNING AND BUDGETING IN HIGHER EDUCATION
Get PDFThis study aims to examine the management of state finances at the planning and budgeting stages. The mandate of the amendment of the 1945 Constitution which allocates a budget for education of 20% of the State Budget (APBN) is a challenge and constraint in managing the budget at an educational institution, especially higher education. The purpose of this study is to determine the problematic planning and budgeting of state finances. The object of this study is the leadership and the budget. This research is conducted in the institution “Ronggosukowatiâ€, one of the government institutions in the sector of higher education in Indonesia. This research is a qualitative research with case study approach. The research is conducted using observation method by interviewing the informants. The results show that there is a problem that occurs at the planning and budgeting process in the institution “Ronggosukowatiâ€. The solution strategy step is to address the problem
Weak, Permissive and Error-Tolerant Supervision: Starting From Correction Habits to Acquit et de Charge Trap As an Entrance to Capital Market Scandal
Get PDFIndonesian financial sector supervision, including the Capital Market is done by the Otoritas Jasa Keuangan/OJK (Financial Services Authority). Capital market is a market driven by the coming of new information. The punctuality and accuration of information are the key for an efficient capital market. The OJK structure and internal process makes us understand why OJK is weak, slow, permissive and error-tolerant to erroneousness. This condition is exploited by issuers/listed companies, including, banking sector companies, ignoring the carefulness rules in delivering the disclosure obligation. It explicitly comes up from most of the correction and revision toward disclosures they have made or even not doing the disclosure obligation. Worse, the audited anual financial which have accepted and legalized by General Meeting of Shareholders and therefore receive acquit et de charge, is rectified for restatement reason. It seems that the OJK failed to understand and stutter against forms of non-compliance and old crime in the new structure, in the form of omission, for investors this failure was a form of impartiality to them. OJK should act as an investor’s advocate, not an issuer carer. In addition to the silo structure, there is an incompatibility of the investigation function with the provisions regarding the investigation in accordance with the Criminal Procedure Code and other deficiency
Effective Corporate Governance to Prevent Fraud in Public Sector in Indonesia
Get PDFFraud in public sector is still widespread in Indonesia. Good corporate governance and internal control can prevent fraud. This paper examine corporate governance in Indonesia. Corporate governance and prevention of fraud can affect the economy of a country. Proper law enforcement is needed to reduce fraud and corruption. Ethical culture and governmental structure is a factors to be considered to create a better institutional environment. Governmental internal control is need to be improved in order to prevent fraud. Internal Auditor can be more effective in preventing fraud than external auditor. The ACFE’s 2008 survey provides empirical evidence to this effect as the survey found that over 19% of the respondents’ fraud cases were initially detected by internal audits versus about 9% that were discovered by external audits
REVITALIZING AND STRENGTHENING THE ROLE OF APIP IN BUILDING STRONG TONE AT THE TOP AS AN EFFORT TO PREVENT CORRUPTION IN INDONESIA
Get PDFNo country or organization can fully avoid the risk of fraud. The most common fraud in Indonesia is corruption. Corruption has become a culture that is very difficult to separate in every sector especially in the government sector. Sadly, many corruption cases involve regional leaders. Indirectly, the bad example or tone at the top of the leader is one of the causes of the culture of corruption still inherent in the government sector. Corruption in the government sector will certainly have an impact on the declining quality of public services in the community. Weak internal control systems, consisting of both hard control and soft control, in Government are one of the main factors that leads the leaders having the opportunity and motivation to commit corruption continuously. Within the Indonesian Government there isGovernment Internal Auditor (hereinafter referred to Aparat Pengawasan Intern Pemerintah / APIP). APIP is expected to be able to answer the need for the current audit profession. The new paradigm demands the role of APIP not only acting as a supervisor but also a controller. As a Controller, APIP plays a role in guiding and ensuring that all existing processes in government to achieve objectives have been implemented accountably and can minimize risks especially fraud risks by performing several roles such as consulting and assurance service to prevent, detect, and prove the occurrence of fraud through an active role in the whistleblowing system, risk-based audit,forensic audit and continuous audit. To support the role of APIP, it is necessary to strengthen the institutional, regulation and capabilitysectors so that APIP's role can be effective and maximal. If APIP's role is effective in establishing a good control system then the opportunities and wishes of a local leader in committingcorruption is also small so the leaders can provide good tone at the top for subordinates. Thus, it will be able to form a strong anti-corruption culture for any regional leaders. Therefore,the revitalization and strengthening of APIP can be used as a strategy in making anti-corruption system and culture in Indonesi
PREVENTION OF CRIMINAL ACTS OF MONEY LAUNDERING IN BANKS
Get PDFNational development carried out so far has been an ongoing development effort in order to create a just and prosperous society based on Pancasila and the 1945 Constitution. To achieve this goal, the implementation of development, including in the economic and financial fields. Economic activities that occur in society are essentially a series of extraordinary legal actions of various types, varieties, qualities and variations that are carried out between individuals, between companies, between countries and between groups in various volumes with high frequency at any time in various places. The role is good in terms of collecting funds from the community and channeling available funds to finance existing economic activities. Many forms of crime are committed within the scope of a country, whether committed by individuals or corporations. This form of crime produces considerable wealth, such as corruption, smuggling of goods or labor, embezzlement, narcotics, gambling, tax crimes, and so forth. In order not to reveal who is the perpetrator, the assets obtained from the above crimes are hidden from the origin by entering the assets into the financial system, especially in the banking system. This form is called money laundering. In this writing, the author wants to formulate a problem statement that will be discussed, namely concerning the role of banks in preventing money laundering. In this section the methods of conducting research is normative juridical. The role of banking institutions to prevent and detect the flow of dirty money that tries to enter the financial system
THE CONNECTIVITY OF WHISTLEBLOWING ONLINE SYSTEMBETWEENGOVERNMENT AGENCIES IN INDONESIA: A NEW ROUND OF PREVENTING AND ERADICATING CORRUPTION
Get PDFThis paper aims to explain the connectivity of whistleblowing online system between the Witness and Victim Protection Agency (LPSK), the Corruption Eradication Commission (KPK), and 17 ministries/institutions that hasbeen established since 2017. The challenges raised in the implementation of the whistleblowing online system are discussed in line with a case of the Ministry of Marine and Fisheries Affairs, a non-participant ministry in the connectivity of whistleblowing online system. The reason for selecting this case is to provide a different view of how a non-aligned institution within the network undertakes efforts in eradicating corruption through whistleblowing system. The discussion still leaves several obstacles to achieving an effective whistleblowing system. These constraints include insecurity of mutation in remote areas due to reporting alleged frauds and a response to a fraudulent thatconsider reasonable. This article is intended to encourage further discussion and research regarding the implementation of whistleblowing online systems in government agencies in Indonesia
INHERENT FRAUD RISK ASSESSMENT: ANALYSIS OF MAIN TASKS TO MINIMIZE FRAUD RISK (Case Study of an Industrial Supervisory in Indonesia)
Get PDFThis research aims to analyze and provide views on inherent fraud riskof an Industrial Supervisory in Indonesia. The inherent fraud risk analysis will be examined using fraud risk assessment methods presented in COSO: 2016.Based on observations of the main tasks and work units of the organization, there are 18 fraud schemes identified.The results of this study indicate that the four highest fraud schemes are "Extortion to the 3rd party", "Conflict of interest in licensing", "Conflict of interests in external arrangements", and "Conflict of interest in Enforcement/inspection". As for related tasks, there are three things that must be considered: management of information systems, logistics, and industrial supervision
EVALUATION OF POLICIES ON THE FIT AND PROPER TEST FOR STRATEGIC OFFICIALS IN SUPPORTING EFFORTS TO PREVENT AND ERADICATE CORRUPTION
Get PDFIntegrity of strategic officials is absolutely necessary to support the effective implementation of corruption prevention and eradication system in a government. To get officials with integrity, one of the efforts pursued is to apply the mechanism of fit and proper test. Based on a comparative study of various invitation laws, it was found a number of crucial issues relating to the policy of the fit and proper test of a number of strategic officials. These crucial issues include differences in the standard requirements of prospective officials, the presence / absence of a selection committee, the absence of detailed guidelines on information sources and measures to provide objective assessments of the value of integrity from a candidate, and provisions regarding dismissal of officials who are potentially counterproductive with corruption prevention and eradication effort