RED FLAGS AND FRAUD PREVENTION ON RURAL BANKS
Keywords:
financial risk, liquidation, corporate governance, audit
Abstract
This paper identifies the effectiveness of the red flags in detecting fraudulent financial statements, as well as preventive measures appropriate to implemented in Bank Perkreditan Rakyat (BPR). We use field survey convering the whole BPR in Province Bali, covering 60 indicators provided to 101 internal auditors from 86 BPR. The result shows that the highest dimensions within the Fraud Diamond are capability. Efforts to prevent the fraud would be the culture of honesty and high ethics, evaluating anti-fraud process and control, and developing an appropriate oversight process.Downloads
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References
American Institute of Certified Public Accountant’s. (2002). Consideration of Fraud in A Financial Statement Audit. Statement on Auditing Standards. No. 99. New York.
Association of Certified Fraud Examiners. (2010). Report to The Nation on Occupational Fraud. https://acfe.com/ documents/2010RttN.pdf, diunduh pada 5 Oktober 2016.
Albrecht , S., K. Howe dan M. Romney. (1986). Red-Flagging Management: a Validation. Advances in Accounting: 323-333.
Apostolou B, Hassell J, Webber S, dan Sumners G. (2001). The Relative Importance of Management Fraud Risk Factors. Behavioral Research in Accounting, 13: 1-24.
Bank Indonesia. (2016). Kajian Ekonomi dan Keuangan Regional Triwulan II 2016. http://www.bi.go.id/id/publikasi/kajian-ekonomi-regional/bali/Pages/Kajian-Ekonomi-danKeuanganRegional-Provinsi-Bali-Agustus-2016.aspx. diunduh pada 1 Desember 2016.
Bank Indonesia. (2016). Surat Edaran Bank Indonesia No.13/28/DPNP tentang Penerapan Strategi Anti Fraud bagi Bank Umum.
Bierstaker, J.L., J. E. Huntn, dan J. C Thibodeau. (2012). Does Fraud Training Help Auditors Identify Fraud Risk Factors? Advances in Accounting Behavioral Research, 15: 85–100.
Blokdijk H., Drieenhuizen F, Simunic DA, dan Stein MT. (2003). Factors Affecting Auditors’ Assessments of Planning Materiality. Auditing: A Journal of Practice & Theory, 22 (2): 297–307.
Choo, F. dan Tan, K. (2007). An “American Dream” Theory of Corporate Executive Fraud. Accounting Forum, 31 (2): 203-215.
Coram P, Ferguson C, dan Moroney R. (2008). Internal Audit, Alternative Internal Audit Structures and the Level of Misappropriation of Assets Fraud. Accounting & Finance, 4: 543–59.
Cressey, D. R. (1950). The Criminal Violation of Financial Trust. American Sociological Review, 15 (6): 738–743.
Cressey, D. R. (1953). Other People’s Money; A Study of the Social Psychology of Embezzlement. New York, NY: Free Press.
Friedman, S. (1995). Case Study: Pay Attention to Warning Signals. Journal of Accountancy: 65-80.
Ghozali, Imam. (2011). Aplikasi Analisis Multivariate Dengan Program IBM. SPSS 19 (Edisi Kelima) Semarang: Universitas Diponegoro.
Gillentine, A. (2009). Business Fraud on the Rise During Recession. The Colorado Springs Business Journal. http://csbj.com/2009/12/17/business-fraud-on-the-rise-during-recession. diunduh pada 5 Oktober 2016.
Gulllkvist, B dan A. Jokippi. (2013). Perceived Importance of Red Flags Across Fraud Types. Critical Perspectives on Accounting, 24: 44–61.
Groveman, H. (1995). How Auditors can Detect Financial Statements Misstatement. Journal of Accountancy: 83-86.
Hay, L. (2013). The Changing Profile of Fraud. http://www.ohioscpa.com/mobile/currentnews/2013/03/13/the-changing-profile-offraud?c=1. diunduh pada 5 Oktober 2016.
Hegazy, Mohamed dan Kassem, Rasha. (2010). Fraudulent Financial Reporting: Do Red Flags Really Help? International Journal of Academic Research: Economics and Engineering, 4: 69 – 79.
Heiman-Hoffman, Vicky B, Kimberly P. Morgan dan James M Patton, (1996). The Warning Signs of Fraudulent Financial Reporting. Journal of Accountancy, 182 (4).
Kaplan, S. dan Reckers, P. M. J. (1995). Auditors’ Reporting Decisions for Accounting Estimates: The Effect of Assessments of The Risk of Fraudulent Financial Reporting, Managerial Auditing
Journal, 10 (5): 27-36.
KPMG. (2009). Fraud Survey 2009. http://www.kpmg.com/ZA/en/IssuesandInsights/ArticlesPublications/Risk-Compliance/Pages/Fraud-Survey-2009.aspx. diunduh pada 5
Oktober 2016.
Koornhof, C. dan Plessis, D Du. (2000). Red Flagging as an Indicator of Financial Statement Fraud: The Perspective of Investors and Lenders. Meditari Accountancy Research, 8: 69-93.
Libby, R. dan D.M. Frederick. (1990). Experience and The Ability to Explain Audit Findings. Journal of Accounting Research, 28 (2): 348-367.
Liou F-M. (2008). Fraudulent Financial Reporting Detection and Business Failure Prediction Models: A Comparison. Managerial Auditing Journal, 7: 650–62.
Messier Jr WF, Martinov-Bennie N, dan Eilifsen A. A (2005). Review and Investigation of Empirical Research on Materiality: Two Decades Later. Auditing: A Journal of Practice & Theory, 2:153–87.
Moeller. (2009). Brink’s Modern Internal Auditing, 7th Edition. New Jersey: John Wiley & Sons.
Moyes, Glen D., Ping Lin, Raymond M. Landry, dan Handan Vicdan. (2006). Red Flags Detecting Fraud. Journal of Accounting, Ethics & Public Policy, 6 (1): 1-28.
Moyes, Glen D. (2007). The Differences in Perceived Level of Fraud-Detecting Effectiveness of SAS No. 99 Red Flags Between External and Auditor Internals. Journal of Business & Economics Research. 6: 9-25.
Moyes, G.D. dan C. R. Baker. (2009). Factors Inflencing The Use of Red Flags to Detect Fraudulent Financial Reporting, Internal Auditing, 24 (3): 33-40.
Moyes, Glen D., Mohamed Din, dan Hesri Faizal. (2013). Malaysian Internal and External Auditor Perceptions of the Effectiveness of Red Flags for Detecting Fraud. International Journal of Auditing Technology, 1 (1): 91-106.
Nieschwietz, R. J., Schultz, J. J., dan Zimbelman, M. F. (2000). Empirical Research on External Auditors’ Detection of Financial Statement Fraud. Journal of Accounting Literature, 19: 190-246.
Norman C, Rose J, dan Suh I. (2011) The Effects of Disclosure Type and Audit Committee Expertise on Chief Audit Executives’ Tolerance for Financial Misstatements. Accounting, Organizations and Society, 36:102–8.
Omar, Normah Binti. (2011). Fraud Diamond Risk Indicator: an Assessment of Its Importance and Usage. http://www.researhgate.net/publication diunduh pada 5 Oktober 2016.
Omar, Normah Binti Omar, dan H. F. Mohamad Din. (2010). Fraud Diamond Risk Indicator: An Assessment of Its Importance and Usage. http://ieeexplore.ieee.org/ document/5773853/ diunduh pada 5 Oktober 2016.
Otoritas Jasa Keuangan. (2015). Peraturan Otoritas Jasa Keuangan No 4/POJK.03/2015 tentang Penerapan Tata Kelola bagi Bank Perkreditan Rakyat.
Otoritas Jasa Keuangan. (2016). Surat Edaran Otoritas Jasa Keuangan No 7/SEOJK.03/2016 tentang Standar Pelaksanaan Fungsi Audit Intern Bank Perkreditan Rakyat.
Otoritas Jasa Keuangan. (2016). Laporan Profil Industri Perbankan Triwulan I-2016.
Pincus, Karen V. (1989). The Efficacy of A Red Flags Questionnaire for Assessing The Possibility of Fraud. Accounting, Organizations and Society, 12 (1-2): 153-163.
PriceWater House Coopers. (2009). The Global Economic Crime Survey: Economic Crime in A Downturn
PriceWater House Coopers (2004). The Emerging Role of Internal Audit in Mitigating Fraud and Reputation Risk.
Radar Bali Jawa Pos. (2016). Kondisi Tak Pasti, Kecurangan Belum Berhenti. Edisi Minggu 27 November 2016, halaman 21.
Robbins, Stephen A., dan Judge, Timothy. (2008). Perilaku Organisasi 2 Edisi 12. Jakarta: Salemba Empat.
Rustiarini, Ni Wayan dan Ni Luh Gde Novitasari. (2014). Persepsi Auditor atas Efektivitas Red Flags untuk Mendeteksi Kecurangan Pelaporan Keuangan. Jurnal Akuntansi Multiparadigma, 05 (3): 345-354.
Rustendi, T. (2009). Analisis terhadap Faktor Pemicu Terjadinya Fraud (Suatu Kajian Teoritis bagi Kepentingan Audit Internal). Jurnal Akuntansi, 9 (2): 705-714.
Sengur, Evren Dilek. (2012). Auditors’ Perception of Fraud Prevention Measures: Evidence from Turkey. Annales Universitatis Apulensis Series Oeconomica, 14 (1): 128-138.
Tuanakotta, Theodorus M. (2010). Akuntansi Forensik dan Audit Investigatif. Edisi 2. Jakarta: Salemba Empat.
Wolfe, David T. dan D. R. Hermanson. (2004). The Fraud Diamond: Considering The Four Elements of Fraud. The Certified Public Accountants (CPA) Journal. December: 38-42.
Weisenborn, D. dan Norris, D.M. (1997). Red Flags of Management Fraud, National Public Accountant, 42 (2): 29-33.
Yang, Weifang, Moyes, Glen D., Hamedian, Hamed, dan Rahradian, Azar. (2010). Professional Demographic Factors That Influence Iranian Auditors’ Perceptions of the Fraud-Detecting Effectiveness of Red Flags. International Business & Economics Research Journal, 9 (1): 83-102.
Yulifah, Anna dan Gugus Irianto. (2014). Persepsi Auditor Eksternal tentang Determinan Pencegahan Kecurangan Laporan Keuangan. Jurnal Ilmiah Mahasiswa FEB Universitas Brawijaya, 2 (2) http://portalgaruda.org diunduh pada 5 Oktober 2016.
http://beritadewata.com/Ekonomi-dan-Bisnis/Badung/OJK-Gelar-Diskusi-Ditengah-KetatnyaPersaingan-BPR.html. diunduh 17 November 2016
http://bali.bisnis.com/read/20151215/14/56043/kinerja-bpr-di-bali-kredit-tumbuh-125 diunduh 17 November 2016
http://bisniskeuangan.kompas.com/read/2016/06/09/204422226/tahun.2005.sampai.2016.
lps.likuidasi.71.bank diunduh 22 September 2016.
http://bali.tribunnews.com/2016/05/11/kredit-macet-bpr-di-bali-capai-427-persen-ini-saran-ojk. diunduh 17 November 2016
http://finansial.bisnis.com/read/20110513/90/30259/hampir-70-percent-bpr-tutup-karena-fraud. diunduh 22 September 2016.
https://finance.detik.com/moneter/d-3344651/bpr-paling-banyak-lakukan-pidana-perbankanini-sebabnya. diunduh 17 November 2016
http://infobanknews.com/bpr-ditutup-lagi-lagi-karena-fraud/ diunduh 22 September 2016.
Association of Certified Fraud Examiners. (2010). Report to The Nation on Occupational Fraud. https://acfe.com/ documents/2010RttN.pdf, diunduh pada 5 Oktober 2016.
Albrecht , S., K. Howe dan M. Romney. (1986). Red-Flagging Management: a Validation. Advances in Accounting: 323-333.
Apostolou B, Hassell J, Webber S, dan Sumners G. (2001). The Relative Importance of Management Fraud Risk Factors. Behavioral Research in Accounting, 13: 1-24.
Bank Indonesia. (2016). Kajian Ekonomi dan Keuangan Regional Triwulan II 2016. http://www.bi.go.id/id/publikasi/kajian-ekonomi-regional/bali/Pages/Kajian-Ekonomi-danKeuanganRegional-Provinsi-Bali-Agustus-2016.aspx. diunduh pada 1 Desember 2016.
Bank Indonesia. (2016). Surat Edaran Bank Indonesia No.13/28/DPNP tentang Penerapan Strategi Anti Fraud bagi Bank Umum.
Bierstaker, J.L., J. E. Huntn, dan J. C Thibodeau. (2012). Does Fraud Training Help Auditors Identify Fraud Risk Factors? Advances in Accounting Behavioral Research, 15: 85–100.
Blokdijk H., Drieenhuizen F, Simunic DA, dan Stein MT. (2003). Factors Affecting Auditors’ Assessments of Planning Materiality. Auditing: A Journal of Practice & Theory, 22 (2): 297–307.
Choo, F. dan Tan, K. (2007). An “American Dream” Theory of Corporate Executive Fraud. Accounting Forum, 31 (2): 203-215.
Coram P, Ferguson C, dan Moroney R. (2008). Internal Audit, Alternative Internal Audit Structures and the Level of Misappropriation of Assets Fraud. Accounting & Finance, 4: 543–59.
Cressey, D. R. (1950). The Criminal Violation of Financial Trust. American Sociological Review, 15 (6): 738–743.
Cressey, D. R. (1953). Other People’s Money; A Study of the Social Psychology of Embezzlement. New York, NY: Free Press.
Friedman, S. (1995). Case Study: Pay Attention to Warning Signals. Journal of Accountancy: 65-80.
Ghozali, Imam. (2011). Aplikasi Analisis Multivariate Dengan Program IBM. SPSS 19 (Edisi Kelima) Semarang: Universitas Diponegoro.
Gillentine, A. (2009). Business Fraud on the Rise During Recession. The Colorado Springs Business Journal. http://csbj.com/2009/12/17/business-fraud-on-the-rise-during-recession. diunduh pada 5 Oktober 2016.
Gulllkvist, B dan A. Jokippi. (2013). Perceived Importance of Red Flags Across Fraud Types. Critical Perspectives on Accounting, 24: 44–61.
Groveman, H. (1995). How Auditors can Detect Financial Statements Misstatement. Journal of Accountancy: 83-86.
Hay, L. (2013). The Changing Profile of Fraud. http://www.ohioscpa.com/mobile/currentnews/2013/03/13/the-changing-profile-offraud?c=1. diunduh pada 5 Oktober 2016.
Hegazy, Mohamed dan Kassem, Rasha. (2010). Fraudulent Financial Reporting: Do Red Flags Really Help? International Journal of Academic Research: Economics and Engineering, 4: 69 – 79.
Heiman-Hoffman, Vicky B, Kimberly P. Morgan dan James M Patton, (1996). The Warning Signs of Fraudulent Financial Reporting. Journal of Accountancy, 182 (4).
Kaplan, S. dan Reckers, P. M. J. (1995). Auditors’ Reporting Decisions for Accounting Estimates: The Effect of Assessments of The Risk of Fraudulent Financial Reporting, Managerial Auditing
Journal, 10 (5): 27-36.
KPMG. (2009). Fraud Survey 2009. http://www.kpmg.com/ZA/en/IssuesandInsights/ArticlesPublications/Risk-Compliance/Pages/Fraud-Survey-2009.aspx. diunduh pada 5
Oktober 2016.
Koornhof, C. dan Plessis, D Du. (2000). Red Flagging as an Indicator of Financial Statement Fraud: The Perspective of Investors and Lenders. Meditari Accountancy Research, 8: 69-93.
Libby, R. dan D.M. Frederick. (1990). Experience and The Ability to Explain Audit Findings. Journal of Accounting Research, 28 (2): 348-367.
Liou F-M. (2008). Fraudulent Financial Reporting Detection and Business Failure Prediction Models: A Comparison. Managerial Auditing Journal, 7: 650–62.
Messier Jr WF, Martinov-Bennie N, dan Eilifsen A. A (2005). Review and Investigation of Empirical Research on Materiality: Two Decades Later. Auditing: A Journal of Practice & Theory, 2:153–87.
Moeller. (2009). Brink’s Modern Internal Auditing, 7th Edition. New Jersey: John Wiley & Sons.
Moyes, Glen D., Ping Lin, Raymond M. Landry, dan Handan Vicdan. (2006). Red Flags Detecting Fraud. Journal of Accounting, Ethics & Public Policy, 6 (1): 1-28.
Moyes, Glen D. (2007). The Differences in Perceived Level of Fraud-Detecting Effectiveness of SAS No. 99 Red Flags Between External and Auditor Internals. Journal of Business & Economics Research. 6: 9-25.
Moyes, G.D. dan C. R. Baker. (2009). Factors Inflencing The Use of Red Flags to Detect Fraudulent Financial Reporting, Internal Auditing, 24 (3): 33-40.
Moyes, Glen D., Mohamed Din, dan Hesri Faizal. (2013). Malaysian Internal and External Auditor Perceptions of the Effectiveness of Red Flags for Detecting Fraud. International Journal of Auditing Technology, 1 (1): 91-106.
Nieschwietz, R. J., Schultz, J. J., dan Zimbelman, M. F. (2000). Empirical Research on External Auditors’ Detection of Financial Statement Fraud. Journal of Accounting Literature, 19: 190-246.
Norman C, Rose J, dan Suh I. (2011) The Effects of Disclosure Type and Audit Committee Expertise on Chief Audit Executives’ Tolerance for Financial Misstatements. Accounting, Organizations and Society, 36:102–8.
Omar, Normah Binti. (2011). Fraud Diamond Risk Indicator: an Assessment of Its Importance and Usage. http://www.researhgate.net/publication diunduh pada 5 Oktober 2016.
Omar, Normah Binti Omar, dan H. F. Mohamad Din. (2010). Fraud Diamond Risk Indicator: An Assessment of Its Importance and Usage. http://ieeexplore.ieee.org/ document/5773853/ diunduh pada 5 Oktober 2016.
Otoritas Jasa Keuangan. (2015). Peraturan Otoritas Jasa Keuangan No 4/POJK.03/2015 tentang Penerapan Tata Kelola bagi Bank Perkreditan Rakyat.
Otoritas Jasa Keuangan. (2016). Surat Edaran Otoritas Jasa Keuangan No 7/SEOJK.03/2016 tentang Standar Pelaksanaan Fungsi Audit Intern Bank Perkreditan Rakyat.
Otoritas Jasa Keuangan. (2016). Laporan Profil Industri Perbankan Triwulan I-2016.
Pincus, Karen V. (1989). The Efficacy of A Red Flags Questionnaire for Assessing The Possibility of Fraud. Accounting, Organizations and Society, 12 (1-2): 153-163.
PriceWater House Coopers. (2009). The Global Economic Crime Survey: Economic Crime in A Downturn
PriceWater House Coopers (2004). The Emerging Role of Internal Audit in Mitigating Fraud and Reputation Risk.
Radar Bali Jawa Pos. (2016). Kondisi Tak Pasti, Kecurangan Belum Berhenti. Edisi Minggu 27 November 2016, halaman 21.
Robbins, Stephen A., dan Judge, Timothy. (2008). Perilaku Organisasi 2 Edisi 12. Jakarta: Salemba Empat.
Rustiarini, Ni Wayan dan Ni Luh Gde Novitasari. (2014). Persepsi Auditor atas Efektivitas Red Flags untuk Mendeteksi Kecurangan Pelaporan Keuangan. Jurnal Akuntansi Multiparadigma, 05 (3): 345-354.
Rustendi, T. (2009). Analisis terhadap Faktor Pemicu Terjadinya Fraud (Suatu Kajian Teoritis bagi Kepentingan Audit Internal). Jurnal Akuntansi, 9 (2): 705-714.
Sengur, Evren Dilek. (2012). Auditors’ Perception of Fraud Prevention Measures: Evidence from Turkey. Annales Universitatis Apulensis Series Oeconomica, 14 (1): 128-138.
Tuanakotta, Theodorus M. (2010). Akuntansi Forensik dan Audit Investigatif. Edisi 2. Jakarta: Salemba Empat.
Wolfe, David T. dan D. R. Hermanson. (2004). The Fraud Diamond: Considering The Four Elements of Fraud. The Certified Public Accountants (CPA) Journal. December: 38-42.
Weisenborn, D. dan Norris, D.M. (1997). Red Flags of Management Fraud, National Public Accountant, 42 (2): 29-33.
Yang, Weifang, Moyes, Glen D., Hamedian, Hamed, dan Rahradian, Azar. (2010). Professional Demographic Factors That Influence Iranian Auditors’ Perceptions of the Fraud-Detecting Effectiveness of Red Flags. International Business & Economics Research Journal, 9 (1): 83-102.
Yulifah, Anna dan Gugus Irianto. (2014). Persepsi Auditor Eksternal tentang Determinan Pencegahan Kecurangan Laporan Keuangan. Jurnal Ilmiah Mahasiswa FEB Universitas Brawijaya, 2 (2) http://portalgaruda.org diunduh pada 5 Oktober 2016.
http://beritadewata.com/Ekonomi-dan-Bisnis/Badung/OJK-Gelar-Diskusi-Ditengah-KetatnyaPersaingan-BPR.html. diunduh 17 November 2016
http://bali.bisnis.com/read/20151215/14/56043/kinerja-bpr-di-bali-kredit-tumbuh-125 diunduh 17 November 2016
http://bisniskeuangan.kompas.com/read/2016/06/09/204422226/tahun.2005.sampai.2016.
lps.likuidasi.71.bank diunduh 22 September 2016.
http://bali.tribunnews.com/2016/05/11/kredit-macet-bpr-di-bali-capai-427-persen-ini-saran-ojk. diunduh 17 November 2016
http://finansial.bisnis.com/read/20110513/90/30259/hampir-70-percent-bpr-tutup-karena-fraud. diunduh 22 September 2016.
https://finance.detik.com/moneter/d-3344651/bpr-paling-banyak-lakukan-pidana-perbankanini-sebabnya. diunduh 17 November 2016
http://infobanknews.com/bpr-ditutup-lagi-lagi-karena-fraud/ diunduh 22 September 2016.
Published
2016-12-29
How to Cite
Rustiarini, N., Suryandari, N. N., & Nova, I. K. (2016). RED FLAGS AND FRAUD PREVENTION ON RURAL BANKS. Buletin Ekonomi Moneter Dan Perbankan, 19(2), 177-206. https://doi.org/10.21098/bemp.v19i2.629
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Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
