The Implementation of Fraud Risk Assessment and Anti-Fraud Strategy in Government Institution XYZ
DOI:
https://doi.org/10.21532/apfjournal.v6i2.232Keywords:
Public Sector, Fraud Risk, Fraud Risk Assessment, Anti-Fraud StrategyAbstract
Government Institution XYZ is one of the government institutions trying to build bureaucratic reform and minimize fraud risk. This study attempted to conduct a fraud risk assessment to identify, analyze, evaluate, and determine appropriate anti-fraud strategies to various fraud risk scenarios that may occur in Government Institution XYZ. The research was conducted qualitatively with a case study approach. The data were collected through document analysis, questionnaires, interviews, and Focused Group Discussion (FGD). Based on the FRA results, researchers identified thirteen fraud risk scenarios that organization needs to anticipate. Considering the organization’s risk appetite, there are two very high-level risk scenarios, four high-level risk scenarios, four medium-level risk scenarios, and three low-level risk scenarios among all of these risk scenarios. Several anti-fraud strategies need to be implemented to reduce fraud risk, including preventive, detective, and responsive strategies by optimizing existing and other relevant anti-fraud strategies.References
Albrecht, W. (2012). Fraud examination, (4th ed). USA: South-Western Cengage Learning.
Alfatah, Q. & Tobing, A.N.T. (2019). Mitigating fraud risk at the Directorate General of Taxes. Advances in Social Science, Education and Humanities Research, volume 558: Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019).
Ali, Syarif. (2019). Indonesian civil service management and corruption. Asia Pacific Fraud Journal Volume 4, Nomor 1 (January-June) 2019.
Asare, Thomas. (2009). Internal auditing in the public sector: promoting good governance and performance improvement. International Journal on Government Financial Management, vol. IX, no. 1, 15-28.
Association of Certified Fraud Examiners. (2016). The fraud tree: Occupational fraud and abuse classification system.
Association of Certified Fraud Examiners. (2020). Fraud risk management: Fraud Risk Assessment.
Auditing Standards Board. (2002). Statement on auditing standards no. 99: Consideration of fraud.
Barra, R.A. (2010). The impact of internal controls and penalties on fraud. Journal of Information Systems (2010) 24 (1): 1–21.
Becker, G. S. (1974). Crime and punishment: An economic approach. University of Chicago and National Bureau of Economic Research.
Bell, E. O. (2010). Internal control checklist: 5 anti-fraud strategies to deter, prevent, detect. Deloitte.
Bungin, Burhan. (2011). Metodologi Penelitian Kualitatif. Jakarta: Raja GrafindoPersada.
Chartered Institute of Management Accountants. (2012). Fraud risk management: A guide to good practice. The United Kingdom.
Committee of Sponsoring Organizations of the Threadway Commission. (2016). Fraud risk management guide. Austin: Association of Certified Fraud Examiner, Inc.
Cressey, D. R. (1953). Other people’s money. Montclair NJ: Patterson Smith.
Ellet, W. (2018). Case study handbook. Harvard Business School Press.
Eryanto, Dedy. (2020). An effective anti-fraud program: How do we know? (The challenge of finding an anti-fraud program in the Indonesian public sectors). Asia Pacific Fraud Journal Vol. 5, No. 2 (July-December) 2020.
Furqan, R.A. &Tobing, A.N. (2017). Implementation of business process fraud risk assessment to minimize the fraud risk occurrence: Case study at PT. TI. APBEC. Asia Pacific Business and Economic Conference.
Grove, H. & Clouse, M. (2020). Financial and non-financial fraud risk assessment. Journal of Forensic and Investigative Accounting, vol. 12, 3, special issue.
Julian, L. et al. (2021). The effects of tone at the top and professional skepticism on fraud risk judgment among internal auditors in Indonesia. Management & Accounting Review, vol. 20, no. 1.
Kamal, M., &Tohom, A. (2019). Likelihood rating of fraud risk in government procurement. The International Journal of Business Review (The Jobs Review), 2(1), 29–38.
Nassir, M.D.M., Sanusi, Z.M. & Ghani. E.K. (2015). Effect of brainstorming and expertise on fraud risk assessment. International Journal of Economics and Financial Issues, 2016, 6(S4) 62-67.
Noviyanti, S. &Winata, L. (2015). The role of “tone at the top†and knowledge of fraud on auditors’professional skeptical behavior. Contemporary Management Research, vol. 11, no. 1, 55-74.
Rehman A. & Hashim F. (2020). Impact of fraud risk assessment on good corporate governance: Case of public listed companies in Oman. Business Systems Research, vol. 11, no. 1, 16-30.
Rubasundram, G.A. (2015). Perceived “tone from the top†during a fraud risk assessment.Procedia Economics and Finance 28, 102 – 106.
Singleton, T.W. & Singleton, A.T. (2010). Fraud auditing and forensic accounting (4th ed.). New Jersey: John Wiley & Sons, Inc.
Siregar, S. V. &Tenoyo, B. (2015). Fraud awareness survey of private sector in Indonesia. Journal of Financial Crime, 22(3), 329–346.
Spira, L.F. & Page, N.J. (2003). Risk management: The reinvention of internal control and the changing role of internal audit. Accounting, Auditing and Accountability Journal, vol. 16, no. 4, 640-661.
Stake, R. E. (2000). Handbook of Qualitative Research (2nd ed.). Thousand Oaks, CA: Sage.
The Institute of Internal Auditor. (2006). The Role of Auditing in Public Sector Governance.
The Institute of Internal Auditor, The American Institute of Certified Public Accountants, Association of Certified Fraud Examiners. (2008). Managing the business risk of fraud: A practical guide.
The Institute of Internal Auditor. (2016). International standards for the professional practice of internal auditing (standards).
The Institute of Internal Auditor. (2020). The IIA’S three lines model: An update of the three lines of defense.
United States Government Accountability Office. (2015). A Framework for Managing Fraud Risks in Federal Programs.
Uslaner, Eric M. (2002). Trust and corruption. Department of Government and Politics University of Maryland–College Park.
Vona, L. W. (2008). Fraud risk assessment: Building a fraud audit program. John Wiley & Sons, Inc.
Wahyuni, S. (2019). Qualitative research method: Theory and practice (3rd ed.). Jakarta: SalembaEmpat.
Wang, Z. (2015). The effects of tone at the top and quality of the audit committee on internal auditors’ internal control evaluations. The University of Western Australia.
Wells, J.T. (2017). Corporate fraud handbook: Prevention and detection (5th ed.). John Wiley & Sons, Inc.
Yin, R.K. (2017). Case study research and applications: Design and methods (6th ed.). Thousand Oaks, CA: SAGE Publications.
