Asia Pacific Fraud Journal (APFJ - Association of Certified Fraud Examiners, ACFE)
Not a member yet
303 research outputs found
Sort by
STATE-OWNED COMPANY DECISION ON CHOOSING AUDITOR: EVIDENCE FROM EARNING QUALITY ANALYSIS
Get PDFThe importance of using big accounting firm may depend on governance level in each company. If they have good corporate governance and have high concern on improving governance, the company may prefer to use big accounting firm (Lina & Liub 2009; and Houqe, Zijl, Dunstan, & Karim 2015). State-owned enteprise (“BUMNâ€) may have higher agency problem as their objective is people welfare but still profit-oriented. So, they have higher ability to defer the earning than other company. We include research sample of all BUMN which listed on Indonesia stock exchange (IDX) except those which participate in banking and financial industry (JASICA 8). By using discretionary accrual as proxy of lower earning quality and accounting firm size as proxy of audit quality, we found negative relationship between those variable. In other words, if the company want to improve their earning quality they should consider on usinge big accounting firm. In additional analysis, we found that big accounting firm able to reduce management intention to defer earning and tax expense. I encourage government of Indonesia (“the Governmentâ€)to advise BUMN to consider on using big accounting firm to improve earning quality and reduce fraudulent act through financial reporting by management
RECONCEPTUALIZATION OF THE INDEMNIFICATION FOR STATE FINANCIAL LOSS BY CORRUPTORS ON THE BASIS OF PROPORTIONALITY, EFFECTIVENESS, EFFICIENCY, AND FUTURE REACH
Get PDFABSTRACTIn Indonesia, the concept of indemnification for state loss by corruptor has not met the elements of proportionality, effectiveness, efficiency, and future reach. Therefore, re-conceptualization of indemnification for state loss by corruptor is necessary to confront the cunning corruptor in hiding the proceeds of corruption. The re-conceptualization can be constructed by determining remedy sanction for every legal subject sentenced guilty to corruption. The remedy sanction should not only consider the amount of money corrupted, but also the time value of the money, the budget spent to handle the case, and the potential profits obtained when the money is used well as it should be. By this sanction, the amount of money determined as remedy sanction would be proportional and would not only cover as maximum as property acquired for the result of corruption as regulated by the current regulation. In addition, by this sanction, a civil lawsuit for the properties considered as the result of corruption that could spend much money and time would be no longer necessary. Someone convicted on corruption suppose to be automatically considered did default to his promise to the state. The default could be based on his failure in acting according to his official duty or based on an agreement in business relation between the legal subject and state. Should the corruptor couldn’t pay the remedy of state loss in full or partly, the remedy should not be replaced by prison sentence, but the remedy or the difference money should be reckoned as a debt to the state loss. Thus, the debt would be attached to the corruptor and would be a lifetime responsibility for the corruptor as long as he could not pay the debt to the state. The debt even would be continued by the heirs if the corruptor were pass away. Furthermore, this concept could reach the possibility that the wealth resulted of corruption would be used in the future because under these provisions, the future wealth gained by the corruptor could be executed as a part of the extinguishment of debt without considering whether the wealth were the result of corruption or not
DETERMINANT OF FRAUD IN GOVERNMENT AGENCY: EMPIRICAL STUDY AT THE FINANCE AND DEVELOPMENT SUPERVISORY AGENCY (BPKP) OF JAKARTA REPRESENTATIVE OFFICE
Get PDFABSTRACTThe purpose of this study is to examine the influence of the appropriateness of compensation, the effectiveness of internal control systems and the organizational ethical culture on fraud in government agency. The dependent variable used in this study is fraud in government agency, while the independent variables used are the appropriateness of compensation, the effectiveness of internal control systems, and the organizational ethical culture. This study uses a sample of 105 respondents at BPKP Jakarta Representative Office. Sampling technique is conducted using convenience sampling method. Data analysis method used is multiple linear regression statistical analysis. Results of regression analysis show that the appropriateness of compensation has positive effect on the occurrence of fraud in government agency, the effectiveness of internal control system has negative effect on fraud in government agency, and the organizational ethical culture has no significant effect on fraud in government agency
THE INFLUENCE OF THE ASPECTS OF CULTURE, PERSONALITY, AND PUBLIC-PRIVATE RELATIONSHIP ON CORRUPTION IN INDONESIA
Get PDFThe history of corruption in Indonesia is marked by reforms in handling corruption cases. However, these reforms will not succeed if the culture that drives corruption is still maintained. A low level of trust can increase corruption, because it does not encourage good cooperation between the community and the government.Geographical and historical aspects correlate with the level of corruption. Therefore, certain former colonies also correlate with the level of corruption. Personality is a character owned by a person and is integrated in a unique unit, so that the person can modify and determine the adjustment. This can be seen from the high number of officials in developed countries who resigned after being suspected of being involved in corruption cases.Corruption reduces the performance of institutions in the democratic order, suppresses economic growth, exacerbates the income gap, and causes government instability. Therefore, aspects of culture, personality, and public-private relationship are directly proportional to the occurrence of corruption in Indonesia
THE ROLE OF INTERNAL AUDIT IN GOVERNANCE, RISK MANAGEMENT, AND CONTROLS FOR FRAUD PREVENTION AT PPATK
Get PDFABSTRACTLaw Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering has mandated the Indonesian Financial Transaction Reports and Analysis Centre (INTRAC / PPATK) to be the focal point of every effort made to combat money laundering in Indonesia. As a focal point, PPATK receives financial transaction reports from reporting parties, which include Financial Service Providers and Goods and Services Providers, where the data provided are considered to be highly confidential. This indicates that PPATK has become a strategic institution, and thereby it should be assured that its governance, risk management, and internal control are well maintained. Government Internal Supervision Apparatus (APIP) has become more strategic and keeps its pace according to the latest needs. APIP is expected to be the agent of change that could create added-values into the products or services made by the government agency. The activity of internal audit from APIP should contribute to increase the effectiveness and efficiency of governance, risk management, and control processes. In term of risk management, internal auditor should be able to evaluate the effectiveness and his contribution towards the improvement of the risk management process. Internal auditor should monitor the process through sustainable management, separated evaluation, or both. Internal auditor should be able to evaluate the potential occurrence of fraud and how the auditee manages the fraud risk. Meanwhile, in relation to internal control, the activity of internal auditor should evaluate the adequacy and effectiveness of internal control in handling the risks of the auditee’s governance, operational, and information system
JAVANESE PHILOSOPHY “MANUNGGAL ING KAULA ALIT†AS A MEANS TO ERADICATE CORRUPTION
No full textCorruption has a very severe impact on economic stability and state governance. Corruption means stealing the rights of community and is included as a crime that hurts many parties, especially lower or marginal communities. In Indonesia, corruption has been entrenched in society and carried out systemically. At present corruption has spread widely in all aspects of life. Corruption must be handled seriously and thoroughly, otherwise this can have a damaging impact on several aspects. One of the factors that drive the proliferation of acts of corruption is the weak control and lack of community involvement. The involvement of community is usually only in terms of reporting and complaints. Javanese philosophy â€manunggal ing kawulo alit†which means mingling with lower or marginal communities is expected to be one of the ideal solutions to prevent and eradicate corruption in Indonesia. There are many projects that can be developed to directly involve the younger generation and officials to mingle with lower communities. Living together with rural or marginal people will be able to change the nature and personal character of individuals so that they will feel guilty and have desire to change the lives of rural or marginal communities to be better
FACTORS INFLUENCING EMPLOYEES TO COMMIT FRAUD IN WORKPLACE EMPIRICAL STUDY IN INDONESIAN HOSPITALS
No full textoai:ojs.pkp.sfu.ca:article/1Fraud is a part of unethical behavior, which occurs around the world. It occurs because of some factors. This study aims to analyze the factors influencing fraud intention. This research use survey method by distribute questionnaire to respondent with convenience sampling to collect data. The questionnaires fill completely by 154 non-medical employees in some hospitals in Yogyakarta, Indonesia. Smart PLS 2.0 is used to analyze the statistics. The result of the study indicates that organizational commitment and morality leadership have positive effect against fraud intention. Meanwhile, love of money, morality leadership, work environment, religious faith, and organizational culture has negative effect against fraud intention. This research provides the influence of financial and non-financial factors to fraud intention and results can be guideline to protect organization from unethical act
POTENTIAL FOR FRAUD IN THE MANAGEMENT OF JKN FUNDS AT COMMUNITY HEALTH CENTERS (Case study at Community Health Centers in “Hastinapura†District)
No full textThe purpose of this study is to assess the potential for fraud in the management of the National Health Insurance (Indonesian: Jaminan Kesehatan Nasional /JKN) funds at Community Health Center. The research is conducted using qualitative method with case study design in Hastinapura District. The methods of data collection used are documentation, unstructured interviews and observations, which are then analyzed based on interpretation recorded by researchers. The informants consisted of 2 treasurers of JKN Health Center, 1 member of JKN team of Health Department, and 1 medicine manager of Health Center. The results of this research show that the potential for fraud in JKN funds at Health Center includes: the utilization of capitation fund which is not in accordance with the provisions of legislation, the division of service is potential for moral hazard, the operational cost of the Health Centers is colored by the entrusted activities from health department, and the excessive medicine stocks in remote Health Centers. The additional cost occurs because the Health Center is running out of medicine stock so that the patient has to increase the cost for the purchase of the medicine. The potential for fraud in non-capitation funds is that participants have to pay for actual family planning services that actually can be claimed, due to the prolonged disbursement process
FRAUD PATTERNS ON NGO FUNDS ACCOUNTABILITY REPORTS
Get PDFThe purpose of this study is to identify and analyze the fraud patterns on NGO funds accountability reports. The methodological approach used in this study is case study by conducting interview, observation and document review. The findings of this study show that the fraud patterns on the accountability report includes 1) documentation of fictitious activities, 2) fictitious term of reference, 3) fictitious narration, 4) fictitious attendance list, 5) fictitious receipts, 6) lack of controlling, and 7) auditor is not independent
THE MYSTERY OF BUDGET ABSORPTION AT SKPD “BIRU DAUNâ€
No full textThe purpose of this study is to know the budget absorption at SKPD “Biru Daun†which was still below 80% until the end of the 2014 fiscal year. This study uses qualitative method with case study approach. Data collection techniques are carried out through interviews, observation and documentation. Data analysis techniques used consist of data collection, data reduction, data presentation and conclusions. Data validation is done by triangulation method. The results of the study show that there are many irregularities in budget planning, such as the intervention of policy makers, delays in the implementation of auctions, tender committees that are not transparent, and budget accountability that does not use computer technology