Background Pertemuan I 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

Definition Wide terminology of fraud is intentional deception Business or commercial fraud is criminal deception intended to benefit the deceiver financially Law terminology: Fraud embraces all the multifarious means which human ingenuity can devise, which are resorted to by one individual, to get an advantage over another by false representations Bina Nusantara 5

Terminology Fraud Theft Embezzlement Bina Nusantara 6

Fraud Component Misrepresentation Time Frame is in the past or present Material Fact Make-knowingly or recklessly There’s a victim There’s a lost Illegal Act Bina Nusantara 7

Corporate Fraud Corporate fraud globally could be fall into two main category: Fraud that are intended to benefit the organizational entity Fraud that are intended to harm the entity Bina Nusantara 8

Fraud Classification Fraud classification can be seen by : The Actor The Victim Legal Act Bina Nusantara 9

Fraud Classification by Act Financial Statement Fraud Asset Missapropriation Corruption Bina Nusantara 10

Fraud factor or variables Personal variables –Aptitude or abilities –Attitudes or preferences –Personal needs or wants –Values or beliefs External variables –Degree of competition –General economic condition –Societal values Bina Nusantara 11

Fraud factor or variables (con’t) Organizational variables –Nature or scope of the job –Tools or training provided –Reward or recognition system –Quality of management and supervision –Clarity of role responsibilities –Clarity of job-related goals –Interpersonal trust –Motivational and ethical climate Bina Nusantara 12

Organization Criteria Fraud in organization usually occur in organization that have:  No Controls  No trust  No ethical standards  No profits  No future Bina Nusantara 13

Fraud Audit Vs Financial Audit Financial Audit Forensic Accounting Fraud Audit Bina Nusantara 14

Transaction Vs Statement Fraud Transaction fraud usually are intended to facilitate the theft or conversion of organizational assets to one’s personal use Statement fraud usually involve the intentional misstatement of certain financial values to enhance the appearance of profitability and deceive shareholders or creditors Bina Nusantara 15