Matakuliah : F0184/Audit atas Kecurangan
Tahun
: 2007
Fraud Profile
Pertemuan XIV
Learning Outcomes
• Mahasiswa diharapkan mengetahui ciri-ciri umum atau
keadaan dari seorang pelaku kecurangan
• Mahasiswa diharapkan mengetahui langkah-kangkah
pengendalian internal untuk melakukan pencegahan
terhadap timbulnya kasus kecurangan
3
Bina Nusantara
Outline Materi
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Internal Environment Red Flag
Detected Fraud in the Internal Environment
Management and Corporate Fraud
Top Management Fraud
Lower Level of Fraud
4
Bina Nusantara
Lower Level Profile
• Their superiors exert great pressure to achieve high
performance
• Bonuses are tied to short term performance levels and
do not take into consideration economic or competitive
realities
• Internal controls are absent or loosely enforced
• Management controls consist mainly of pressures for
performance
• Business ethics are subordinated to economic self
interest
Bina Nusantara
Lower Level Profile
• Vendors and suppliers are squeezed for the last ounce
of profitability
• There is a great deal of confusion about duties and
responsibilities among subordinates
• A high level of hostility exist among subordinates and
between lower level manager and their lone and staff
superiors
• They believe the present level of responsibility exceeds
the original job description
Bina Nusantara
Characteristic of a fraudster
CFE Association report that:
 Men committed nearly 75% of the case
 Losses caused by managers were four times those
caused by employees
 Typical perpetrator was a college educated male
 Fraudster may feel challenged by ‘secure’ systems
 The individual is willing to bend the rules and take
chances
Bina Nusantara
Common Profile
• Intelligent
• Fraudster may feel challenged by
‘secure’ system
• The individual is willing to bend the
• Risk Taker
rule and take chances
•
They
take
shortcuts
caused
by
self
• Rule Breaker
justifies infractions of laws
• First to arrive and last to leave
• Hard Worker
• Too Friendly
Bina Nusantara
• Close relationship with vendors
Common Profile (Con’t)
• Greedy
• Financial
need
• Complainer
• They don’t satisfy with the
resources available for them
• The result of financial loss caused
by drug, alcohol, illness
• They feels neglected by the
employer and want to gets even
• Big Spender • They live beyond their means.
Lifestyle exceeds their pay
Bina Nusantara
Detecting the Case
• Through the conventional control concepts and audit
trails
• Through periodic financial and operational audits
• By gathering intelligence on the life styles and personal
habits of employees
• By logging exceptions to prescribed controls and
procedures
• By reviewing variances in operating performance
expectations
• Through the intuition of the fraudster’s superior
• Through generalized suspicion
Bina Nusantara
Control Considerations
• Ensure the goals, objective, and control standards are
realistic. They should be challenging but attainable with
ordinary effort
• Involve in the control setting process the employees who
will be bound by the standards
• Install controls only where the control are necessary for
prudent management, and evaluate periodically
• Tight controls are good as long as their administration
and monitoring are placed as far down in the
organization as possible
Bina Nusantara
Control Considerations (Con’t)
• Give output controls a slight edge over behavior controls
as methodologies
• New and better controls do not of themselves solve
problems. But together with enlightened management,
good administration, and intelligent interpretation,
controls lead to efficient and effective operations
• Controls can be of two types: before the fact and after
the fact. Before the fact controls are intended to prevent
problems from occurring. After the fact controls are
intended to detect the problems and need immediate
remedies
• People will comply with rules when they are fair, rational,
and needed for orderly procedure
Bina Nusantara
Approach to Reduce the Case
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Directive Approach
Prevention Approach
Detection Approach
Observation Approach
Investigation Approach
Insurance Approach
Bina Nusantara