2. Fraud Scheme Pertemuan IV Matakuliah: F0184/Audit atas Kecurangan Tahun: 2007

3. Bina Nusantara 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

4. Bina Nusantara Fraud Scheme Red Flag / Symptom Threat and sources of threat Outline Materi 4

5. Sources of Fraud Symptom (Red Flag) Employee Management Investment 5 Bina Nusantara

6. Employee Accounting anomalies Internal control weaknesses Analytical anomalies Extravagant lifestyle Unusual behavior Tips and complaints 6 Bina Nusantara

7. Management Operating performances anomalies Management characteristic that indicate possible motives Organization structure anomalies Irregularities in relationship with other parties 7 Bina Nusantara

8. Investment Numerous 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 8 Bina Nusantara

9. 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 Bina Nusantara 9

10. 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 Bina Nusantara 10

11. 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 Bina Nusantara 11

12. Fraud Threat (Con;t) External Sources Customers commit fraud through false credits posted to their accounts or through rebate coupon frauds Bina Nusantara 12

13. Challenge to the threat Audit trail or documentation Disposable assets Altering records Destruction records Fictitious records Bina Nusantara 13

14. Auditor Component To effectively overcome the issue that we already discussed above, fraud auditor should have following perspectives: Human and individual Organizational, cultural and motivational Economic or competitive Social Regulatory, legal and evidential Accounting, audit, and internal control Bina Nusantara 14