Fraud Examination and

Forensic Accounting :
The Nature of Fraud

Department of Accounting, Brawijaya Malang,

Indonesia

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 Tujuan Pembelajaran –Week 1-

Memahami makna Fraud

Memahami implikasi Fraud

Membedakan antara Fraud Examination

dengan Auditing, dan Forensic Accounting

Memahami karir terkait dengan

“perang” melawan Fraud

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 What is Fraud ???

fraud –noun

1. deceit, trickery, sharp practice, or breach of

confidence, perpetrated for profit or to gain
some unfair or dishonest advantage.
2. a particular instance of such deceit or
trickery: mail fraud; election frauds.
3. any deception, trickery, or humbug: That
diet book is a fraud and a waste of time.
4. a person who makes deceitful pretenses;
sham; poseur. [Origin: 1300–50; ME fraude
< OF < ML fraud- (s. of fraus) deceit, injury]

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 What is Fraud ???

Fraud is a generic term, and embraces all

the multifarious means which human
ingenuity can devise, which are resorted to
by one individual, to get an advantage over
another by false representations. No
definite and invariable rule can be laid down
as a general proposition in defining fraud,
as it includes surprise, trickery, cunning and
unfair ways by which another is cheated.
The only boundaries defining it are those
which limit human knavery (Webster’s New
World Dictionary, College Edition, 1964, p.
380)

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 What is Fraud ???

 “Clandestine Acts”
 Dapat dilakukan setiap orang (owner,
manajer, employee)
 Sektor publik/privat
 Tindakan disengaja
 Merugikan organisasi
 Melawan hukum
 Dilakukan dari dalam atau luar organisasi

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 Fraud : Various Term

Fraud (penipuan, kecurangan, penggelapan)

Error

Irregularities

Corruption

Illegal acts

Bribery

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 Is Fraud A Problem ?

Number of Fradulent  76% of

occurances in past year
organizations
25% have had fraud
7% occur in last year
10%  25% of them
have had more
58%
than 21 fraud
incidents in that
1 to 5 6 to 10 year
11 to 20 21 +
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 Fraud Is Costly !

 Potential total fraud loss of more than

$2.9 trillion.
 23 % of Large U.S. companies experience
frauds of $1 million or more on an annual
basis.
 Fraud costs the U.S. over $435 billion
annually.
 Organizations lose 5% of annual revenue
to fraud.
 Fraud has large indirect costs, including
loss of productivity and legal costs.
 2010 Report to the nation on
Occupational Fraud & Abuse
Perpetrator

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 2010 Report to the nation on
Occupational Fraud & Abuse
Median Loss by Position

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 2010 Report to the nation on
Occupational Fraud & Abuse
Median Loss by Gender

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 2010 Report to the nation on
Occupational Fraud & Abuse
Median Loss by Age

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 Klasifikasi Fraud

The Institute of Internal Auditor (IIA)

 Management fraud, contoh: kejahatan
kerah putih (white collar crime)
 Non management fraud (employee fraud)
 Computer fraud
 Klasifikasi Fraud (ACFE)

Asset Fraudulent
Corruption
Misappropriations Statements

Conflicts
of Interest Cash Financial

Bribery Inventory &

All Other Assets Nonfinancial

Illegal
Gratuities

Economic
Extortion
Klasifikasi Fraud (cont)

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 Initial Detection of Fraud –ACFE-

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FORENSIC ACCOUNTING
DAN FRAUD EXAMINATION

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 Forensic Accounting

• Forensic means “Relating to, used in, or appropriate for

courts of law or for public discussion or argumentation”
(Am. Heritage Dictionary, 4th ed.)
• Accounting means, “a system that provides quantitative
information about finances” (WordNet 2.0)
• Forensic accounting is the application of accounting skills
to provide quantitative financial info. about matters before
the courts
• The essential components of forensic accounting include
an attempt to piece together or reconstruct a past event or
events using financial information where that
reconstruction is likely to be used in some judicial
proceeding (e.g., criminal court, civil court, deposition,
mediation, arbitration, settlement, negotiation, plea
bargaining)

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 Forensic Accounting

Financial
Contract
Disputes

Government
Construction Environmental Estate/Family
Contract
Claim Claim Valuation
Disputes

Fraud
Investigation
Intelectual
Property
Infringement
Damages

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 Fraud Examination

• Fraud means “any act, expression, omission, or

concealment calculated to deceive another to his or her
disadvantage; specifically: a misrepresentation or
concealment with reference to some fact material to a
transaction that is made with knowledge of its falsity or in
reckless disregard of its truth or falsity and with the intent
to deceive another and that is reasonably relied on by the
other who is injured thereby.” (Merriam-Webster Dictionary
of Law)
• Examination means “the act or art of examining” i.e., “to
observe carefully or critically; inspect” or “to study or
analyze” an issue (American Heritage Dictionary, 4th ed.)
• Fraud examination is the thorough study, inspection or
analysis of an issue relating to fraud

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 AUDIT VS FRAUD EXAMINATION

FRAUD
ISSUES AUDIT EXAMINATION
Timing Recurring Non recurring
Scope General Spesific
Objective Opinion Affix blame
Relationship Non adversarial Adversarial
Methodology Audit technique Fraud
examination
technique
Presumption Professional Proof
Skepticism
Sumber: Akuntansi Forensic & Audit Investigatif, Hans Tuanakotta, 2007
 MODEL FORENSIC ACCOUNTING

Akuntansi Forensik
Jenis
Penugas Fraud Audit
an

Proaktif Investigatif

Sumber Risk Temuan Temuan Audit

Informa Assesment Audit AKUNTANSI HUKUM
si Tuduhan
Keluhan

Output Identifikasi Indikasi Bukti

potensi awal ada/tidaknya
fraud adanya pelanggaran
Fraud
Sumber: Akuntansi Forensic & Audit Investigatif, Hans Tuanakotta, 2007
 KLASIFIKASI FRAUD (Cont’d)

SAS No.90: Consideration of Fraud in a

Financial Statement Audit

Fraudulent financial statements

Missappropriation of assets
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