Asia Pacific Fraud Journal

Table of Content

APF Journal — Sat, 14 Dec 2024 00:00:00 +0000

Back Cover

APF Journal — Sat, 14 Dec 2024 00:00:00 +0000

Back Matter

APF Journal — Sat, 14 Dec 2024 00:00:00 +0000

Governance of Village-Owned Enterprises (BUM Desa) in Achieving Village Resource Independence in Bogor District

Posma Sariguna Johnson Kennedy, Vincentius Andi Mintarja Kusuma — Thu, 12 Dec 2024 00:00:00 +0000

Village-Owned Enterprises (BUM Desa) were established as instruments to enhance village resources, as mandated by Law No. 6 of 2014 on Villages. This study aims to analyze village potential, identify priority business areas for BUM Desa, and evaluate the governance practices implemented to support the economic independence of village resources. Adopting a descriptive qualitative approach, data was collected from both primary and secondary sources. The research focuses on BUM Desa entities within Bogor Regency, specifically BUM Desa Citra Wangi in Dramaga District, BUM Desa Sehati in Citeurep District, and BUM Desa Singasari Mandiri Energi in Jonggol District. The findings indicate that village potential identification was not fully aligned with local resource policies, particularly regarding the effective utilization of village assets and the empowerment of communities as economic drivers. Business priorities within BUM Desa often failed to focus on asset management, and governance practices lacked standardized guidelines and objective assessment measures. Additional issues included negative interventions by village heads, conflicts of interest among BUM Desa administrators, and low levels of community involvement, which hindered the effectiveness of BUM Desa in fostering economic independence.

The Effect of E-Government on Corruption-International Evidence

Rita Sugiarti, Lutfia Rizkyatul Akbar — Thu, 12 Dec 2024 00:00:00 +0000

This study aims to prove the relationship between E-Government (E-Gov) and Corruption. GONE Theory is a theory that underlies someone committing corruption. The population is all countries in the world. The study periods are 2012, 2014, 2016, 2018, 2020, and 2022. The samples are selected using purposive sampling. The final observation amounts to 1026 (Unbalanced Firm-Year) consisting of 174 countries. Simple linear regression analysis is used with Stata. The results find that E-Gov has a significant effect in reducing corruption. Then, each EGDI element is used as an independent variable for robustness testing and show that each element has a significant effect on corruption. The higher EGDI score, the higher CPI score. A higher CPI score means that the country is cleaner from corruption, and vice versa. The results of the study can be generalized, but for better results it is necessary to add elements of citizens’ perceptions of E-Gov and corruption. Further research also needs to add control variables to avoid bias in research results.

Revealing Fraudulent Practices in Management of Community Group Regional Grant Funding

Faisol Faisol, Bambang Haryadi, Siti Musyarofah — Thu, 12 Dec 2024 00:00:00 +0000

Grant funds are a Provincial Government program that is disbursed to recipients of grant funds, namely community groups, to improve community welfare through infrastructure development such as road asphalting, concrete rebates, retaining walls, and other programs. This research aims to describe fraudulent practices in managing regional grant funds for community groups starting from planning, implementation, and accountability. This research uses descriptive qualitative methods by collecting data through interviews, observation, and documentation. The results of this research found that the fraudulent practice of managing regional grant funds for community groups began when the proposal was ratified, where there was an act of gratification aimed at speeding up the ratification of the grant fund proposal. During the disbursement of grant funds, unreasonable deductions were practiced by community group coordinators. This practice was carried out for the management of community groups starting from submitting proposals to preparing accountability reports. Fictional physical development activities have a strong backing, the aim is to embezzle and profit from the grant budget. Furthermore, grant fund fraud actors colluded with related agencies so that physical construction that did not comply with budget plans escaped supervision.

Anti-Corruption Education, Is It Important?

Yesaya Brian Syahputra, Gracella Theotama, Aprina Nugrahesthy Sulistya Hapsari — Thu, 12 Dec 2024 00:00:00 +0000

The endless phenomenon of corruption proves that the level of public awareness of corruption is still low and anti-corruption education is needed as early as possible to mitigate the occurrence of corrupt practices in Indonesia, including at the higher education level. The urgency of implementing anti-corruption education also needs to begin with individual awareness of the importance of anti-corruption education. This is a preliminary study that aims to measure students’ perception of anti-corruption education in higher education. This study conducted a survey of several students in all faculties at Universitas Kristen Satya Wacana (UKSW) to see the understanding and the importance of anti-corruption education in the university. The result showed that most of UKSW students understand about corruption and any matters related. The students mostly agree that the role of anticorruption education is very important in efforts to prevent corruption. Furthermore, the learning curriculum at UKSW has accommodated anti-corruption education even though it is not yet explicit and specific.

Individual Morality and Internal Control Systems on Indications of Fraud Prevention in Village Financial Management in Indonesia: A Literature Review

Putu Anesya Dewi A. — Thu, 12 Dec 2024 00:00:00 +0000

Examining the role of individual morality in the internal control system’s ability to eliminate fraud in the management of village finances was the primary objective of this research. In order to avoid fraud, this study surveyed prior work on the topics of individual ethics and internal control systems. In this essay, screening, inclusion, and exclusion were used. An analysis of 20 publications revealed that internal control mechanisms and personal morale are critical to preventing fraud. This indicates that there is a significant influence of the internal control system and individual morality in preventing fraud in village financial management.

Decoding the Language of Deception: A Textual Analysis of Fraud Trends in News Media with Advanced NLP Technique

Nugroho — Thu, 12 Dec 2024 00:00:00 +0000

This research aims to unveil the extent and nature of deception in news media outlets, employing advanced natural language processing (NLP) techniques. NLP has reached an exciting point in its development, which has made it a key tool for analyzing large scale textual data across industries. As a result, fraud detection has become one of the most important use cases of NLP because it can reveal hidden patterns and linguistic indicators. The traditional analysis of fraud is usually based on financial and transactional data, but the analysis of text provides a new view to the way language affects the perception of trustworthiness and deceit. Through integrating various methodologies such as sentiment analysis, topic modeling, and named entity recognition, the investigation meticulously analyzes news articles to identify subtle linguistic indicators of fraudulent behavior. Utilizing specialized NLP software packages like VADER, spaCy, Gensim, and NLTK, the study effectively detects intricate patterns in the representation of fraud within media narratives and monitors shifts in public attitudes towards deceitful actions. The results reveal distinct linguistic patterns and trends in the portrayal of fraud, offering novel insights into the media’s role in shaping public perception of deception. These findings provide significant contributions to the theoretical framework of AI-driven news analysis and have practical implications for journalism and policymaking. This research not only sets new benchmarks in media monitoring and analysis by merging computational linguistics with fraud detection techniques but also plays a crucial role in enhancing the integrity of information dissemination and fostering a more accurately informed public sphere.

Data Analytics in Fraud Prevention and Detection by Government Internal Supervisory Apparatuses at Ministries/Institutions/Local Governments: A Mixed-Method Study

Diana Laurencia Sidauruk — Fri, 13 Dec 2024 00:00:00 +0000

This study investigates differences in internal audit effectiveness and data analytics (DA) usage by the Government’s Internal Supervisory Apparatus (GISA) in fraud prevention and detection (FPD). It examines variations in DA usage based on GISA effectiveness and independence, motivations for DA use, application methods, and the effectiveness of DA tools. Using a mixed-method approach, data was collected via questionnaires and interviews. Independent Samples T-Test results indicate significant differences in internal audit effectiveness and DA usage between high and low DA usage groups across the full sample and within ministries/institutions. Significant differences in DA usage are also found based on GISA effectiveness and independence across the full sample and within ministries/institutions, but not within local governments. Key motivations for DA use include improving FPD efficiency, and DA has shown to enhance anomaly detection and audit scope, with Microsoft Excel and Audit Command Language (ACL) as the most used tools. Findings suggest optimized DA use through expanded access, training, and tailored resource.

The Influence of Auditor Individual Factors to the Time it Takes in Detecting Fraud

Fri, 13 Dec 2024 00:00:00 +0000

ACFE Indonesia 2019 shows that fraud can be found or detected within 12 months. This indicates that there are factors that prevent the fraud from being detected quickly, such as individual auditor factors that play a role in detecting the fraud. The novelty of this research is to focus on individual factors including auditor’s experience, independence, competence and personality type. This research is a quantitative study using surveys, with internal auditors, external auditors and KAP partners as respondents. Results of this study found that factors that greatly influence auditor’s ability to detect fraud are auditor’s experience, independence, competence. Meanwhile, personality has no influence on auditor’s ability to detect fraud. Results of this study can contribute to the association of public accountants in evaluating the criteria for expert auditors who are given permission to conduct investigative audits. It is expected that KAPs (Public Accounting Firms) will offer resources and opportunities to enhance the competence and independence of their auditors.

ChatGPT: The Future Research Assistant or an Academic Fraud? [A Case Study on a State University Located in Jakarta, Indonesia]

Fri, 13 Dec 2024 00:00:00 +0000

ChatGPT is an artificial intelligence (AI) technology currently popular among the public. This groundbreaking technological development has reached various fields, including education, where ChatGPT can facilitate learning activities, making them more effective and efficient. However, this development can also be misused and may facilitate academic fraud. This paper aims to understand the benefits and threats of using ChatGPT for educational purposes and its potential misuse for academic fraud. This study involves a literature review of published journals containing pertinent scientific articles and utilizes data processed from questionnaires distributed to students at a university in Jakarta. Our analysis shows that ChatGPT is useful in several ways, including providing ideas and frameworks for researchers, supporting access to various types of literature, constructing abstracts, formulating research questions and hypotheses, and detecting grammatical errors. In contrast, significant risks are associated with using ChatGPT, particularly in research. These risks include plagiarism, ethical concerns, integrity issues, and the potential inaccuracy of data generated by ChatGPT. Therefore, further validation is needed. Consequently, our analysis also indicates that using ChatGPT to write scientific articles or for closed-book exams is considered academic dishonesty.

The Effect of Hexagon Fraud Theory on Financial Statement Fraud with Audit Committee As a Moderating Variable

Dinda Aulia Hasna, Nurlita Novianti — Fri, 13 Dec 2024 00:00:00 +0000

Increased competition forces companies to prepare accurate financial statements. However, this situation also encourages unethical practices, such as financial reporting fraud or manipulation. By analyzing the audit committee’s function as a moderating variable, this study seeks to ascertain the impact of the notion of fraud on financial statement fraud. Six elements make up the theory: opportunity, pressure, capability, hubris, rationalization, and collusion. Financial statement fraud is quantified using the F-Score Model. Forty-three construction businesses that were listed on the Indonesia Stock Exchange between 2020 and 2022 are included in the sample. A component of the selection process was purposive sampling. Statistical Product and Service Solutions version 25 was used to process the results of the moderating regression analysis. The findings indicate that while opportunity, rationalization, and arrogance have little influence on financial statement fraud, cooperation does. On the other hand, capability and pressure have a beneficial impact. Furthermore, the audit committee does not regulate financial statement fraud via rationalization and arrogance; Rather, it does so through pressure, opportunity, capacity, and collaboration. Businesses should consider the factors that affect financial statement fraud detection, according to the study’s findings.