Background Pertemuan II Matakuliah: F0184/Audit atas Kecurangan Tahun: 2007

Bina Nusantara Mahasiswa diharapkan mampu mendefinisikan fraud Mahasiswa akan mampu mengindentifikasi fraud berdasarkan kriterianya Learning Outcomes 3

Bina Nusantara Fraud Definition Fraud Theory / Principles of Fraud –Opportunity –Pressure –Rationalizm Fraud Component Outline Materi 4

Fraud Theory Bina Nusantara PressureOpportunity Fraud Rationalism 5

Opportunity Bina Nusantara 6

OPPORTUNITY Control Factor Control Environment Accounting Procedures Control Procedures Noncontrol factor Bina Nusantara 7

Control Factor Lack of control that prevent and/or detect fraudulent behavior : –Control environment –Accounting system –Control procedures Bina Nusantara 8

Control Environment Management role’s and examples (Tone at the Top) Management communication Appropriate hiring Clear organization structure and assigned responsibility Effective internal audit department Bina Nusantara 9

Accounting System Recorded transaction are : –Valid –Properly authorized –Complete –Properly classified –Reported in proper period –Properly valued –Summarized correctly Bina Nusantara 10

Control Procedures Segregation of duties or dual custody System of authorization Independent checks Physical safeguards Documents and records Bina Nusantara 11

Noncontrol Factor Inability to judge quality of work Lack of disciplinary action Asymmetric information Ignorance and apathy No audit trail Bina Nusantara 12

PRESSURE Financial Pressures Vice Work Related Pressures Other Pressures Bina Nusantara 13

Financial Pressures Greed Living beyond one’s means High personal debt High medical bills Poor credit Personal financial losses Unexpected financial losses Bina Nusantara 14

Vice Gambling Drugs Alcohol Expensive relationship Bina Nusantara 15

Work Related Little recognition for job performance Felling of job satisfaction Fearing losing one’s job Being overlooked for a promotion Feeling under paid Bina Nusantara 16

Other Pressure Life style changes Challenge to beat system Unexpected crisis Bina Nusantara 17

RATIONALIZATION Common rationalization : The organization owes it to me I am only borrowing the money and will pay it back Nobody will get hurt I deserve more It’s for a good purpose Something has to be sacrificed Everybody does it, so I do it too Bina Nusantara 18