INHERENT FRAUD RISK ASSESSMENT: ANALYSIS OF MAIN TASKS TO MINIMIZE FRAUD RISK (Case Study of an Industrial Supervisory in Indonesia)

Yulia Nurlita(1*), Edward Tanujaya(2),

(1) Faculty of Economics and Business, Universitas Indonesia
(2) Faculty of Economics and Business, Universitas Indonesia
(*) Corresponding Author

Abstract


This research aims to analyze and provide views on inherent fraud riskof an Industrial Supervisory in Indonesia. The inherent fraud risk analysis will be examined using fraud risk assessment methods presented in COSO: 2016.Based on observations of the main tasks and work units of the organization, there are 18 fraud schemes identified.The results of this study indicate that the four highest fraud schemes are "Extortion to the 3rd party", "Conflict of interest in licensing", "Conflict of interests in external arrangements", and "Conflict of interest in Enforcement/inspection". As for related tasks, there are three things that must be considered: management of information systems, logistics, and industrial supervision.

Keywords


work unit, main task, fraud scheme, levelofinherent fraud risk

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