Asia Pacific Fraud Journal (APFJ - Association of Certified Fraud Examiners, ACFE)
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303 research outputs found
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Realizing a Mental Revolution through Astabratha Belief as a Fraud-Neutral Detector
Full text linkThis study aims to realize a mental revolution in the individual through astabratha belief as an effort to achieve fraud-neutral character. The belief is based that the initial occurrence of fraud comes from the mental self. This mentality is formed by teaching the human self-character through the local wisdom genius astabratha which is broken down into eight (asta) character traits. This research uses a qualitative approach with ethnographic studies to reveal the implementing culture of metal astabratha characteristics. The results of study show that fraud comes from self-character which can be prevented by growing eight characters, namely earth, fire, water, wind, sky, sun, moon and stars. These eight characters are manifested through mental self (pangawikan pribadi) to understand actions. This achievement is the result of a movement (response) to persistently reject fraudulent activities through creative, non-authoritarianism, thinking about difficulties and self-afflictions, self-safety and freeing people from suffering and worries, and finally achieving the noble goals of human life. As a result of an embodiment of self-awareness, there is no longer any desire to commit fraud, as well as awareness and behavior culture to feel peaceful in dealing with other people. This mental consistency leads to fraud neutrality as a form of moral integrity for pride, honor and self-esteem
I’M GONE (Integrity Minimal, Greed, Opportunity, Need, Exposure) as the Causes of the Collapse of the KPK’s Anti-Corruption Goal
No full textCorruption Eradication Commission (Indonesia: Komisi Pemberantasan Korupsi/ KPK) as an anti-corruption institution must be free from corruption problems caused by its leaders or employees. Based on these problems, the author needs to conduct limited research to reveal the factors that cause irregularities by KPK employees. The research was conducted by collecting data based on documents and theories obtained from literature studies and then analyzed to reveal the factors causing corruption by KPK employees. The results of the study reveal 5 factors that cause corruption by KPK employees, namely: 1) Lack of integrity of the perpetrators in carrying out their duties as Evidence Managers, 2) The perpetrators are proven to have a greedy nature, where the process of taking gold begins with a small amount and continued with a larger portion on the next opportunity, 3) The perpetrator has the opportunity because of his role in supervising and monitoring the booty and then taking the booty from the storage house on the orders of the investigator, 4) The perpetrator is proven to have more needs including financial activities in high risk portfolios in the form of investment in stocks/foreign currency, 5) The perpetrators consider that the exposure to punishment imposed on corruptors is not proportional with the impact of losses, example the case of KPK investigators who are suspected of destroying evidence in the bribery case are only returned to the original agency without adequate punishment. It is hoped that the results of this research can be input to all Ministries/Institutions to strengthen the internal control system and make more efforts to maintain the integrity of each individual employee so that similar problems do not occur in the future
Corporate Governance on Natural Resources: Lessons from the Past Years Scandal, Fraud, and Corruption
Full text linkThe recognition of corporate governance as one of the solutions to scandal, fraud, and corruption has generated interest among scholars who seek to comprehend the underlying theoretical mechanism of corporate governance practices. Using scientific literature from the Web of Science and news media, this research attempts to probe the conceptual basis for corporate governance in preventing crimes in managing natural resources. Based on the theories of corporate governance, this study reviews the framework and elaborates the challenges of implementing the practices of corporate governance in reducing scandal, fraud, and corruption. Agency and stakeholder theories are mostly used to scrutinize the practice of doing good business. We also evaluate how news media serve as an effective avenue for the public to receive unbiased information. Some major corporate cases reported in news media have indeed provoked scholars to shed light on the role of corporate governance in the presence of the crisis
Determinants of Budgets Fraud for Handling COVID-19 in Makassar City
Full text linkThis study aims to examine the determinants of budget fraud for handling COVID-19 in the city of Makassar. This study uses a survey method for data collection. The samples of this research are 171 employees who work in Local Government Organizations in Makassar City while the data analysis tool uses SMART PLS software.The results of this study indicate that the greater the pressure, opportunity, competence, and arrogance of a person, the greater the level of fraud that occurs in a country. However, different results were found on the rationalization variable that fraud that occurred in a country was not influenced by a person’s rationalization in justifying his actions. Moderation in this study shows that bureaucratic reform can weaken the relationship between pressure and opportunity for fraud. However, it strengthens the connection between justification, competence, and arrogance to the occurrence of frau
The Role of Forensic Accounting and Non-Financial Measurement for the Financial Audit
Full text linkDue to a lack of competency, including knowledge and experience, non-financial measurement skills are now required by auditors in order to prove fraud. As a result, this research aims to identify the gap between the practice requirements and the output of the audit training centre and the role of the forensic accounting curriculum in filling that gap. This research examines the best strategies for establishing competent and reliable auditing practice results. The non-participatory observation data mining method is used in this study. The study discovered that the auditing education and training centre had not taught and did not have a fraud prevention and detection curriculum based on non-financial measurement. As a result, this study recommends that Training Centre develop the audit curriculum in accordance with The International Education Standard. Furthermore, this study suggests that auditing education and training centres involve forensic accounting practitioners in team-teaching, particularly investigative audit topics
Detecting Fraud in Financial Statements Through the Fraud Triangle Model: The Case of Indonesia
Full text linkReferring to ACFE Global’s in the year 2016 until 2018 RTTN, fraudulent financial statement detection is a typical frequency occurrence and gets a large median loss. This study’s purpose is to determine the perspective of the fraud triangle as measured by three elements where fraud occurs in financial statements and is proxied by earnings management. The population is chosen from banking industries that have been listed on the Indonesia Stock Exchange in 2018-2020. The research sample was 25 banks based on the purposive sampling method as criteria sampling. Objects found are 75 objects and hypothesis testing used binary logistic regression. The results show that the fraud triangle perspective simultaneously affects fraud on financial statements. But, partially only pressure factors as proxied by return on assets were shown to be significantly positive, while other pressure factors were financial stability, external pressures, the nature of the industry, effective monitoring with the measure by the independent commissioner, and the rationalization factor, measured by total accruals (TACC) have no significant. The fraud triangle measurement is only used in this research to detect fraud. In addition, very limited sample use because it only covers 4 years so it cannot provide sufficient confidence. It is important to ascertain and analyze fraud factors that can affect financial reporting to minimize fraud that occurs. Management must obtain the widest possible information for making the right decisions so that the triggers of fraud can be minimized and eliminate
Testing the Public Officials’ Integrity in the Moonlighting of State-Owned Company Commissioner
Full text linkConflict of interest is related to fraud and corruption, whose sources include the following, (a) concurrent positions or moonlighting, (b) public sector non-cooling off work/business activities post-employment, (c) work and personal business interests of family, friends, and associates, (d) affiliate relationship of community groups, organizations, and political aspirations. Therefore, this study aimed (1) to develop a catalogue of laws and regulations implicitly and explicitly prohibiting state officials or government employees from implementing moonlighting. It indicated the explicit prohibition of moonlighting against interfering with the conditions causing conflicts of interest. It also aimed (2) to examine the moonlighting of SOE commissioners through state officials. In this analysis, SOE was selected as the sample due to being simultaneously regulated by various policies prohibiting conflicts of interest and moonlighting. The sample was also exchange-listed because of the obligation to disclose information in the Capital Market Law as an Annual Report, where the profiles of the Commissioner members were often showcased. The results showed that moonlighting was unacceptable by public officials as commissioner members, regarding the compiled catalogue
Analysis of Fraud as a Violation of Business Ethics From a Positive Legal Perspective in Indonesia
Full text linkThis research is an analysis of fraud based on library research, while the theme of this research is Fraud Analysis as a Violation of Business Ethics from a Positive Legal Perspective in Indonesia. There are three problem formulations. First, what are the forms of fraud in business ethics? Second, how is fraud as a violation of business ethics from a positive legal perspective in Indonesia? Third, what are the implications of fraud as a violation of business ethics in Indonesia? The content analysis approach is used to examine the forms of fraud, the positive legal perspective of fraud in Indonesia, and the implications of fraud as a violation of business ethics in Indonesia. The results and discussion in this study indicate that fraud has a bad influence on the economy in Indonesia. Therefore, regulations regarding business ethics and consumer protection are made to protect and benefit the wider community
Strengthening Integrity and Introspection: Approaches to Safeguard Organization’s Values from Fraud and Misconduct
Full text linkOrganizations with more robust anti-fraud measures are more likely to maintain comprehensive, internal, external, and introspective integrity. Thus, a high degree of integrity presupposes a low level of corruption. A reasonable strategy would be to prevent employees from committing fraud before recognizing them, as we cannot do much once the harm has been done. Therefore, to improve evasion procedures, organizations need to have specific tactics and techniques in place to make them more understandable and visible to employees. This study aims to demonstrate the importance of integrity and introspection in preventing fraud in a business. The findings reveal several policy implications. First, corruption can be thwarted by vigorously enforcing integrity and introspection. Second, adopting these two variables alone is insufficient; we also require a strong political will to implement such measures