Fraud SchemePertemuan IV

Matakuliah : F0184/Audit atas KecuranganTahun : 2007

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• Mahasiswa diharapkan mampu mengidentifikasi berbagai macam jenis kecurangan atau fraud

• Mahasiswa dapat melihat dan menganalisa symptom sebagai dasar untuk melakukan fraud audit

• Mahasiswa dapat menghubungkan antara symptom dengan hasil audit yang dilakukan

Learning Outcomes

3

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• Fraud Scheme• Red Flag / Symptom• Threat and sources of threat

Outline Materi

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Sources of Fraud Symptom (Red Flag)

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Employee

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Management

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InvestmentNumerous investment scams :• Unreasonable promised rates of return• Investment that do not make sound business sense• Pressure to get in early on investment• Tax avoidance schemes• Investment that not suitable for your risk• Pressure to put all your saving into a particular

investment

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Fraud Threat

Internal Sources• Officer of a company create false financial reports to

improve their own performance measurement

• Managers inflate their expense accounts or turn blind eye to supplier fraud in exchange for kickbacks

• Other employees commit fraud such as embezzlement, cash skimming, or account receivable lapping

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Fraud Threat (Con;t)

Internal Sources• Corporate directors defraud a company’s

shareholders through fraudulent financial reporting, stock market manipulation, or insider trading

• Employee theft or misappropriation of assets, which may involve collusion with outside vendors or suppliers

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Fraud Threat (Con;t)

External Sources• Supplier falsify or duplicate invoices.

• Competitors victimize a company through industrial espionage or price fixing.

• Con artists defraud a company with schemes involving products, services, or investment opportunities that never materialize

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Fraud Threat (Con;t)

External Sources• Customers commit fraud through false credits

posted to their accounts or through rebate coupon frauds

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Challenge to the threat

• Audit trail or documentation

• Disposable assets

• Altering records

• Destruction records

• Fictitious records

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Auditor ComponentTo effectively overcome the issue that we already discussed above, fraud auditor should have following perspectives: Human and individualOrganizational, cultural and motivationalEconomic or competitiveSocialRegulatory, legal and evidential Accounting, audit, and internal control

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