Asia Pacific Fraud Journal (APFJ - Association of Certified Fraud Examiners, ACFE)
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303 research outputs found
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Corporate Governance, Effectiveness of Internal Audit Function and Fraud in Islamic Banking in Indonesia
Full text linkThis research explores the correlation between corporate governance and the effectiveness of internal audit functions in preventing fraud within Islamic banking in Indonesia. This study uses 53 observational data sourced from the annual reports of Islamic banking in Indonesia for the period 2010-2019. The data were analyzed using linear regression. The results of this study indicate that corporate governance has no effect on fraud, while the effectiveness of the internal audit function is able to reduce fraud in Islamic banking in Indonesia. The implication of this research is that Islamic banking is expected to consider the effectiveness of the internal audit function in its formation, so that internal audit performance in fraud prevention can be carried out optimally
Business Email Compromise (BEC) Fraud and How to Prevent it
Full text linkCybercrime is on the rise both at the national and cross-border levels. The latest mode of cybercrime is fraud using Business Email Compromise (BEC). A qualitive analysis method with literature study is applied to discuss two key questions of this paper. First, how does the BEC scheme occur?. Second, how an organization/company can prevent/mitigate the risk of BEC fraud. This paper concludes that BEC can be executed in the form of phishing emails sent by perpetrators (both internal and external actors of the organization) to the target victim (organization’s employees) in order to deceive and obtain financial gain. Various efforts can be made by an organization/company to prevent the risk of BEC fraud, among others in the form of implementing a risk management system, implementing an information security management system, and increasing the organization’s internal awareness
Disclosing the Potential for Fraud in the Flow of Funds at “Dana†Cooperative
Full text linkApart from being a pillar of national economic development, cooperatives also play a role in improving the welfare of their members. The whole process of managing cooperatives must be based on the principles of good organizational governance. However, the good role of cooperatives in supporting the national economy has not been realized properly. Cases of fraud still often occur in the process of managing cooperative funds which have an impact on the sustainability of cooperatives and stakeholders. In every case of fraud there must be motives behind it. This study aims to identify the potential for fraud and its motives at “Dana†Cooperative in X Village, Y Regency, East Nusa Tenggara Province. This research uses a qualitative approach with a case study method. The data used in this study are primary data, obtained through Focus Group Discussions (FGD) and interviews, and secondary data from supporting documents. The results of this study indicate that there is a potential for fraud in managing funds at “Dana†Cooperative in the form of asset misappropriation. The funds managed by the cooperative are funds obtained from funding program for the independent villages launched by the provincial government. Fraud motives include pressure, opportunity, and rationalization
Forecasting the Prospect of the Future Business Growth and Detecting Distorted Earnings in Public Insurance Industry: The Voice from Indonesia
Full text linkInsurance firms nowadays become a highlight for society after some cases of payment failure in Indonesia occur such as Jiwasraya, and Bumi Putera. It may decrease public trust in the prospect of the insurance business in the future. This research aims to demonstrate the future growth of the insurance business performances in Indonesia and detect distorted earnings. Afterward, the future growth yielded by firms between distorted and non-distorted earnings is tested in this research. The sample was public insurance firms in Indonesia. Financial data were analyzed using Autoregressive Integrated Moving Average (ARIMA) for forecasting future growth, meanwhile, the nexus between variables was tested using a logistic regression model of panel data. The result found that the prospect of insurance firms will be growing with positive and negative values. They will pull through the ups and downs of business over the period of 2021 to 2027. This research further detected the distorted earnings in the insurance business performances and found that the future growth yielded by firms with distorted earnings has no difference from non-distorted earnings. The finding is addressed to the insurance companies as input. They need to prepare their business from now by increasing their performance. This finding is considered as the means of rebuilding their trust in the growth of the insurance business and providing the answer to society regarding the insurance business prospect in the future
Fraud Prevention in the Village Fund System: A Case Study in Marga Mulya Village, Tangerang
Full text linkThe purpose of this study is to examine fraud prevention in the village fund system using the metrics stated in Permendesa No.19 of 2020. SISKEUDES were formed by the Financial and Development Supervisory Agency (BPKP) to enhance village government and financial management. Internal control is an important component in mitigating the possibility of village money being misused. The qualitative descriptive approach was used to conduct the research at Marga Mulya Village. Data was collected through interviews and observations, and data triangulation was employed as an analytical tool. Internal control in the village financial system has been implemented fairly effectively, according to the study’s results and discussion, as internal control efforts have been applied to each indicator in Permendesa No.19 of 2020. However, there is still a risk of fraud because various internal control indications that have been created have not been followed up on in a timely and appropriate manne
Analysis of Performance Anomaly and Fraudster Profile for Fraud Prevention and Detection
Full text linkThe rapid development of technology provides us with a lot of data that can be used for various purposes, such as fraud risk management. Data analytics should be the basis for anti-fraud activities related to prevention and detection processes. This study aims to elaborate on the data analytics used in developing fraud red flags based on historical reports. By applying anomaly data analytics and demographic profiles of fraudsters, this study finds that performance anomalies contribute 68% to fraud, while 3 to 10 years of service without career advancement can trigger motivation to commit fraud. Finally, the paper recommends that data analytics should be followed by human approaches such as lifestyle audits and career advancement programs. Further research is expected to be able to complement other parameters for data analysis and use statistical methods to obtain more accurate results
Audit Experience, Independence, and Professional Skepticism Against Fraud Detection: Time Pressure as a Moderating Factor
Full text linkThe extraordinary effect of the Covid-19 outbreak, which pushes society and government to deal with a new normal in the face of situation uncertainty, raises the risk of fraud. The goal of this study is to predict and explain the effect of audit expertise, independence, and professional skepticism on fraud detection, with time pressure acting as a moderating variable. This inquiry employed the explanatory approach. The population comprises of BPK RI (The Audit Board of the Republic of Indonesia) and BPKP (Finance and Development Supervisory Agency) auditors from South Kalimantan Province, and the samples include 85 respondents. Surveys are used to collect data. The data suggest that audit knowledge and professional skepticism have a positive influence on fraud detection; independence has no effect on fraud detection; and time constraint has no effect on fraud detection
Integrity Disclosure in Banking Companies in Indonesia
Full text linkFraudulent practices such as corruption can lead losses and are one of the obstacles to achieving company goals. This has a lot to do with a lack of integrity. Integrity is a concept related to a commitment to comply with the ethics, values, and norms in society. The purpose of this study is to identifythe integrity disclosure in banking companies in Indonesia. The research method is content analysis based on information from the bank’s official website. The measurement uses the Integrity Framework Disclosure Index (IFDi) which includes 13 indicators with 47 disclosure items. Integrity disclosure measurement is conducted on 107 online websites of Indonesian banking companies that are registered in the Financial Services Authority (OJK). The results of this study indicate that integrity disclosure in banking companies in Indonesia is high with an average score of 37 out of 47 disclosure items, or 79.44%. The state-owned bank group has the highest integrity disclosure with an average score of 44.25 out of 47 disclosure items
Can a Village Website Be an Indicator of Public Transparency?
Full text linkThe village is the lowest unit that must be a government structure which in financial management is based on the principles of good governance and transparency. Transparency as accountability to all stakeholders as well as a supervisory effort to minimize fraudulent forms of financial management. One form of transparency is through the management of village websites. But in reality the village website has not been managed optimally. Therefore, this study aims to analyze the transparency of village financial management through websites in 280 villages that are within the scope of the Grobogan Regency area. The method used is qualitative research with a descriptive interpretation approach, namely observing, describing and interpreting objects and then drawing conclusions. Data collection based on content analysis regarding village management achievements. The results showed that the utilization of village websites in Grobogan Regency as a form of transparency had not been maximized. The lack of transparency is due to the lack of information provided, and many websites only provide tools with no content in them, thereby triggering a possible decrease in public and other stakeholders’ trust in village managemen