KTF

BPK RI

Detecting Fraud
BATAM, MARET 2018
 KTF
BPK RI

Fraud, likely other crime, can be best explained by

three factors: a supply of motivated
offenders, the availability of suitable
targets and the absence of capable
guardians

Cohen & Felson

 KTF
BPK RI
The 10-80-10 Rule

10% 80% 10%

TIDAK AKAN
Akan melakukan fraud Akan AKTIF mencari
melakukan
karena ada KESEMPATAN, kelemahan sistem
fraud
TEKANAN, RASIONALISASI untuk melakukan fraud
Combating Fraud KTF
STRATEGIES AND BEST PRACTICES BPK RI

1 UNDERSTANDING FRAUD

• Asset misappropriation remains the highest form of economic crime

experienced by the Australian public sector in the last 12 months.

MACQUARIE UNIVERSITY 4
Combating Fraud KTF
STRATEGIES AND BEST PRACTICES BPK RI

UNDERSTANDING FRAUD

• More than 37% of government agencies and SOEs have reported an

economic crime in the last 12 months, with 57% of all fraud reported having
been perpetrated by an employee.

• In NSW, theft, procurement fraud, payroll fraud and false expenditure claims
are the most common type of economic crime committed by public sector
employees.

MACQUARIE UNIVERSITY 5
Fraud in Indonesia

Fraud In Indonesia
2%
Korupsi

31% Asset Missapro

priation
Financial State
67% ment Fraud

OFFICE I FACULTY I DEPARTMENT 6

 Media Ditemukannya Fraud
Pengawasan oleh IT

Kebetulan

Pengakuan

Review Manajemen

Penegakan Hukum

Rekonsiliasi dari Akun-akun

Column2
Column1
Pengamatan da... Media

Lainnya

Pemeriksaan Dokumen

Audit Internal

Audit Eksternal

Laporan
0% 5% 10% 15% 20% 25% 30% 35% 40%
OFFICE I FACULTY I DEPARTMENT 7
Suffered Organization in Indonesia KTF
BPK RI

1.30%
Nirlaba

2.20%
Lainnya

7.20%
Perusahaan Swasta

8.10%
BUMN

Pemerintah 81.20%

0.00% 30.00% 60.00% 90.00%

Jenis Organisasi
OFFICE I FACULTY I DEPARTMENT 8
Perpetrators in Indonesia
KTF
BPK RI

Lainnya

Karyawan

Direksi/ Pemilik

Manajer

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

Jabatan

OFFICE I FACULTY I DEPARTMENT 9

Average Age of Perpetrators
INDONESIA

> 66 th

56-65 th

46-55 th

36 - 45 th

26 - 35 th

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Usia
OFFICE I FACULTY I DEPARTMENT 10
Gender KTF
BPK RI

3%

97%

Laki-laki Perempuan

OFFICE I FACULTY I DEPARTMENT 11

Education KTF
BPK RI

Education
DoktorSMA
Diploma
Magister 1% 1% 3%
13%

Sarjana
82%

OFFICE I FACULTY I DEPARTMENT 12

Red Flags KTF
BPK RI

Diisolasi masyarakat
Ketergantungan narkoba
Masalah pekerjaan di masa lalu
Masalah hukum di masa lalu
Cepat marah, curiga
Permasalahan keluarga
Komplai ntidak diberikan wewenang
Ketidakstabilan di lingkungan hidupnya
Selalu menolak cuti
Tekanan berlebihan dalam perusahaan
Tidak suka membagi tugas]
Kesulitan keuangan
Tidak puas dengan gaji
Tekanan keluarga agar tampak sukses
Lihai
Hubungan akrab dengan pembeli ata...
Bermewah-mewah
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

Tanda-tanda Fraud

OFFICE I FACULTY I DEPARTMENT 13

Reserach in Fraud KTF
BPK RI

Edwin Sutherland
Differential association, crime is learned
Dysfunctional parents wil lproduce dysfunctional offspring
what to learnd: Techniques and attitude
Donald Cressey
Fraud Triangle
Steve Albrecht
Red Flag
FRAUD TRIANGLE KTF
BPK RI

Mengapa seseorang melakukan fraud??

OPPORTUNITY
(kesempatan)

ON
T I
PR Z A
I ran)
ES L
A e na
(te SU ON
ka
n an RE
I
T (pe m b
) RA
 OPPORTUNITY KTF
BPK RI

• Can be real or
perceived;
• Perpetrators who
think they will be
caught, rarely
commit fraud.
 KTF
Opportunity-providing factors BPK RI

• Lack of controls or
ineffectively applied
controls
• Inability to judge the
quality of work
• Lack of discipline
• Lack of access to
information
• No audit trail
• Ignorance or apathy
 PRESSURE KTF
BPK RI

 The right amount of

pressure can cause
even honest people to
commit fraud.
 Employees under lots
of pressure should not
be given the
opportunity to commit
fraud.
 KTF
SOURCE OF PRESSURE BPK RI

• Lifestyle
• Personal debt:
• Financial losses
• Gambling
• Drugs
• Challenge to beat the
system
• Job dissatisfaction
Top 10 Albrecht’s Red Flags
Personal Characteristics
Living beyond means
Overwhelming desire of personal gain
High personal debt
A close association with customer
Feeling of underpay
Wheeler dealer attitude
Strong challange to beat system
Gambling habits
Family or peer presure
No recognition for job performance
KTF
BPK RI
Organizational environment
Too much trust in key employees
Lack of proper authorization of transaction
Inadequate disclosures of personal
investment and incomes
No separation of authorization of
transaction and custody of assets
Lack of independent checks on
performance
Inadequate attention to details
No separation of custody of assets from
accounting
No separation of duties between
accounting function
Lack of clear lines of duty
Infrequently reviewed by internal auditors 20
Basic Fraud Exam KTF
Methodology BPK RI

• The basic fraud exam methodology has two general phases:

1) Predication 2) Fraud Theory Approach

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Predication KTF
BPK RI

• Predication is the totality of circumstances that

would lead a reasonable, professionally trained,
and prudent individual to believe a fraud has
occurred, is occurring, and/or will occur.
• Predication is the basis upon which a fraud exam
is commenced.
• Fraud exams should not be conducted without
proper predication.

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Predication KTF
BPK RI

• Predication starts with signals of a fraud

• Tips or complaints
• Accounting clues (Ratios are out of whack.)
• Other clues or signals (The assistant controller, making $75,000, drives a
$200,000 car and lives in a $750,000 home.)

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Predication KTF
BPK RI

• Evaluate signals of a fraud. Evaluate:

• Tips or complaints (from a whacko disgruntled ex-employee or from a
good reliable employee).
• Accounting clues (analyze ratios).
• Other clues or signals (check out the assistant controller’s house with a
drive by).

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Predication KTF
BPK RI

• Evaluate internal controls

• What are the normal ICs?
• Who are the people normally involved in the IC process?
• Are there instances when normal ICs are not followed?
• Who? What? When? Where? Why?
• Have there been any changes in the personnel or the IC process?

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Predication KTF
BPK RI

• Why evaluate internal controls?

• You have a signal of fraud (tip, accy clue, etc.)
• Now you have to see if there is a weakness in the ICs that could give the
preliminary suspect the opportunity to commit fraud.

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Predication KTF
BPK RI

• Decision Step
• If the signal is strong and you find a related weakness in the IC structure,
you will decide that predication is sufficient and you will move to the Fraud
Theory phase.

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Fraud Theory Approach KTF
BPK RI

• All fraud examinations begin with the proposition that all cases will end in
litigation.
• Fraud exam is like many investigative processes --- its draws from the
scientific method.

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Fraud Theory Approach KTF
BPK RI

• The Fraud Theory Approach involves the following steps:

 Analyze available data
 Create a hypothesis
 Test the hypothesis
 Refine and amend the hypothesis
 Go back to step 

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Fraud Theory Approach KTF
BPK RI

• The Fraud Theory Approach has 6 action stages:

1. Develop a fraud theory
• Who might be involved?
• What might have happened?
• Why might the allegation be true?
• Where are the possible concealment place or methods?
• When did this take place (past, present, or future)?
• How is the fraud being perpetrated?

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Fraud Theory Approach KTF
BPK RI

2. Determine where the evidence is likely to be:

• On-book vs. Off-book
• Direct of circumstantial
• Identify potential witnesses
3. What evidence is necessary to prove intent?
• Number of occurrences
• Other area of impropriety
• Witnesses
4. Revise fraud theory
5. Prepare a chart linking people and evidence
6. Determine potential defenses to allegations

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Fraud Theory Approach KTF
BPK RI

• Decision Stage
• Evaluate the information from the preceding phases.
• Is there evidence sufficient to proceed?
• If yes, complete the investigation through: interviews, document
examination, observations, etc. Follow the fraud theory steps.
• If no, stop the examination process.

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Tools KTF
BPK RI

• Skill in examination of Financial Statement

• Skill in interview
• Skill in Observation

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 KTF
BPK RI

• THANK YOU

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Examples

• Detecting Skimming
Steal cash from drawer
Internal Control?

• Detecting overstated expense

Overstating travel expense
Multiple charge
Internal control?

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