Matakuliah : F0184/Audit atas Kecurangan
Tahun
: 2007
Fraud Audit
Pertemuan VI
Learning Outcomes
• Mahasiswa diharapkan mampu mengidentifikasi audit
atas kecurangan, dan audit keuangan
• Mahasiswa dapat mengetahui fungsi dari auditor
kecurangan
• Mahasiswa diharapkan mengetahui perbedaan antara
auditor kecurangan dan auditor keuangan
3
Bina Nusantara
Outline Materi
• Fraud audit and financial audit
• Fraud Auditor Profile
• Fraud Auditor Vs Financial Auditor
4
Bina Nusantara
Principles of Fraud Auditing
• Fraud auditing is unlike financial auditing. It is more a
mind-set than a methodology.
• Fraud auditors focus on exceptions, oddities, accounting
irregularities, and patterns of conduct, not on errors and
omissions.
• Learning to be a fraud auditor means learning to think
like a thief.
• From an audit perspective, fraud is intentionally
misrepresenting financial facts of a material nature. From
a fraud audit perspective, fraud is an intentional
misrepresentation of financial facts.
5
Bina Nusantara
Principles of Fraud Auditing (Con’t)
• Fraud are committed for economic, egocentric,
ideological, and psychotic reason. Of the four, the
economic motive is the most common.
• Fraud tends to encompass a theory structured around
motive, opportunity, and benefit.
• Fraud in a computerized accounting environment can be
committed at any stage of processing-input, throughput,
or output. Input frauds are the most common.
• The most common fraudulent schemes by lower-level
employees involve disbursements.
• The most common fraudulent schemes by higher-level
managers involve “profit smoothing”.
6
Bina Nusantara
Principles of Fraud Auditing (Con’t)
• Accounting-type frauds are caused more often by
absence of controls than by loose controls.
• Fraud incidents are not growing exponentially, but fraud
losses are.
• Accounting frauds are discovered more often by accident
than by financial audit purposes or design. Over 90% of
financial frauds are discovered by accident.
• Fraud prevention is a matter of adequate controls and a
work environment that places a high value on personal
honesty and fair dealing.
7
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Common Mistakes From Fraud Auditor
Converting audit to investigation
Not properly coordinating with other departments
Understanding the legal issue to make the case
Maintaining appropriate confidentiality
Understanding management’s interest in the fraud
8
Bina Nusantara
Common Mistakes From Fraud Auditor
(Con’t)
Obtaining the evidence that is later found to be
inadmissible
How to put findings and observations into writing
Not proving the defendant innocent
Understanding what an audit procedure can & can’t
detect
Lack of Investigation Plan
9
Bina Nusantara
Carl Jung Taxonomy
Left Hemisphere………… Right Hemisphere
Sensation/
Thinking
Intuition/
Thinking
Sensation/
Feeling
Intuition/
Feeling
Financial
Auditor
Fraud
Auditor
Teacher
Artist
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The Iceberg Theory of Fraud
Overt Aspect
Hierarchy
Financial Resources
Goal of organization
Skill and abilities of personnel
Technological State
Performance standards
Efficiency Measurement
Structural
consideration
waterline
Covert Aspect
Attitude
Felling
Values
Norm
Interaction
Supportiveness
Satisfaction
Behavioral
consideration
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Competency Needed for Fraud Auditor
Legal
Organizational
Audit
Investigative
Risk Management
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Bina Nusantara
Legal
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Criminal, civil and contractual fraud
Fraud versus Theft and embezzlement
Material versus immaterial misrepresentation
Error versus irregularities
Mistakes versus misstatement
Conspiracies versus individually perpetrated fraud
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Organizational
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Fraud committed or against the company
Insider and outsider fraud
Insiders in conspiracies with outsiders
High level and low level employee fraud
Long-term and short-term performance criteria
Fraud in high-trust and low-trust organization
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Audit
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Internal and external auditor responsibilities
Statement and transaction fraud
Overstated and understated records
On-book and off-book fraud
Financial and fraud auditing
Concealment, destruction, and alteration of records
Fraud in manual versus computerized accounting
systems
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Bina Nusantara
Investigative
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Compromising control and personnel
Motivation on fraud
Detection and prevention of fraud
Psycho-social characteristic
16
Bina Nusantara
Risk Management
• Risk prevention, transfer and assumption
• High risk companies, industries, occupations,
personalities
• Red flags
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Bina Nusantara