BackgroundPertemuan II

Matakuliah : F0184/Audit atas KecuranganTahun : 2007

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• Mahasiswa diharapkan mampu mendefinisikan fraud

• Mahasiswa akan mampu mengindentifikasi fraud berdasarkan kriterianya

Learning Outcomes

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• Fraud Definition• Fraud Theory / Principles of Fraud

– Opportunity– Pressure– Rationalizm

• Fraud Component

Outline Materi

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Fraud Theory

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Opportunity

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OPPORTUNITY

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Control Factor

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

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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

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Accounting System

Recorded transaction are :– Valid– Properly authorized– Complete– Properly classified– Reported in proper period– Properly valued– Summarized correctly

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Control Procedures

• Segregation of duties or dual custody• System of authorization• Independent checks• Physical safeguards• Documents and records

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Noncontrol Factor

• Inability to judge quality of work• Lack of disciplinary action• Asymmetric information• Ignorance and apathy• No audit trail

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PRESSURE

• Financial Pressures• Vice• Work Related Pressures• Other Pressures

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Financial Pressures

• Greed• Living beyond one’s means• High personal debt• High medical bills• Poor credit• Personal financial losses• Unexpected financial losses

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Vice

• Gambling• Drugs• Alcohol• Expensive relationship

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Work Related

• Little recognition for job performance• Felling of job satisfaction• Fearing losing one’s job• Being overlooked for a promotion• Feeling under paid

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Other Pressure

• Life style changes• Challenge to beat system• Unexpected crisis

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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

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