IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v9y2020i4p377-384.html
   My bibliography  Save this article

Fraud prevention and detection practices in the perspective of Jember Regency internal auditor

Author

Listed:
  • Ari Fahimatussyam Putra Nusantara

    (Accounting Department, Faculty of Economics and Business, Brawijaya University, Malang, Indonesia)

  • Gugus Irianto

    (Accounting Department, Faculty of Economics and Business, Brawijaya University, Malang, Indonesia)

  • Yeney Widya Prihatiningtias

    (Accounting Department, Faculty of Economics and Business, Brawijaya University, Malang, Indonesia)

Abstract

This study aims to understand the practice of fraud prevention and detection by government internal auditors in Jember Regency. This study uses interpretive qualitative research methods with an ethnomethodology approach. Data collection was carried out through interviews with six supervisors/auditors as key informants. The results of this study show that fraud prevention by the Jember Regency internal auditor is carried out in the consulting activities and reviewing the work plan and budget (Rencana Kerja dan Anggaran, RKA) of Regional Government Organization (Organisasi Perangkat Daerah, OPD). The detection of fraud by the Jember Regency internal auditor is carried out through regular audits and community complaint services, where the community complaint service will be explored by the Jember Regency internal auditor by conducting a special inspection. Thus, the results of this study show that the government's internal auditors have an important role in fraud prevention. Key Words: Fraud Prevention, Fraud Detection, Government Internal Auditor, Ethnomethodology

Suggested Citation

  • Ari Fahimatussyam Putra Nusantara & Gugus Irianto & Yeney Widya Prihatiningtias, 2020. "Fraud prevention and detection practices in the perspective of Jember Regency internal auditor," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 377-384, July.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:4:p:377-384
    DOI: 10.20525/ijrbs.v9i4.775
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/775/612
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v9i4.775
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v9i4.775?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tyge-F. Kummer & Kishore Singh & Peter Best, 2015. "The effectiveness of fraud detection instruments in not-for-profit organizations," Managerial Auditing Journal, Emerald Group Publishing, vol. 30(4/5), pages 435-455, May.
    2. Hermiyetti Hermiyetti, 2010. "Pengaruh Penerapan Pengendalian Internal Terhadap Pencegahan Fraud Pengadaan Barang," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 14(2), pages 1-12, Desember.
    3. George Drogalas & Michail Pazarskis & Evgenia Anagnostopoulou & Angeliki Papachristou, 2017. "The Effect of Internal Audit Effectiveness, Auditor Responsibility and Training in Fraud Detection," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 16(4), pages 434-454, December.
    4. Deepa Mangala & Pooja Kumari, 2017. "Auditors’ Perceptions of the Effectiveness of Fraud Prevention and Detection Methods," Indian Journal of Corporate Governance, , vol. 10(2), pages 118-142, December.
    5. Paul Coram & Colin Ferguson & Robyn Moroney, 2008. "Internal audit, alternative internal audit structures and the level of misappropriation of assets fraud," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 48(4), pages 543-559, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Monica Ramos Montesdeoca & Agustín J. Sánchez Medina & Felix Blázquez Santana, 2019. "Research Topics in Accounting Fraud in the 21st Century: A State of the Art," Sustainability, MDPI, vol. 11(6), pages 1-31, March.
    2. Shana Clor-Proell & Steven Kaplan & Chad Proell, 2015. "The Impact of Budget Goal Difficulty and Promotion Availability on Employee Fraud," Journal of Business Ethics, Springer, vol. 131(4), pages 773-790, November.
    3. David T. Tan & Larelle Chapple & Kathleen D. Walsh, 2017. "Corporate fraud culture: Re-examining the corporate governance and performance relation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 597-620, June.
    4. Isabel Z. Wang & Neil Fargher, 2017. "The effects of tone at the top and coordination with external auditors on internal auditors’ fraud risk assessments," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(4), pages 1177-1202, December.
    5. İsmail KABAN & Mustafa GÜL, 2019. "The Impact of Underground Economy on the Sustainability of Tax Policy in Turkey," Istanbul Business Research, Istanbul University Business School, vol. 48(1), pages 113-143, May.
    6. Asaad Wahhab & Amna Ibrahim Obaid, 2023. "Adoption of the ISA 500 and its Impact on Audit Quality and Fraud Reduction: Evidence from Iraq," Technium Social Sciences Journal, Technium Science, vol. 45(1), pages 30-48, July.
    7. Mark E. Lokanan & Prerna Sharma, 2023. "Two Decades of Accounting Fraud Research: The Missing Meso-Level Analysis," SAGE Open, , vol. 13(3), pages 21582440231, September.
    8. Dan Amiram & Zahn Bozanic & James D. Cox & Quentin Dupont & Jonathan M. Karpoff & Richard Sloan, 2018. "Financial reporting fraud and other forms of misconduct: a multidisciplinary review of the literature," Review of Accounting Studies, Springer, vol. 23(2), pages 732-783, June.
    9. Gladys Lee & Neil Fargher, 2013. "Companies’ Use of Whistle-Blowing to Detect Fraud: An Examination of Corporate Whistle-Blowing Policies," Journal of Business Ethics, Springer, vol. 114(2), pages 283-295, May.
    10. Evren Dilek Sengur, 2012. "Auditors' Perception Of Fraud Prevention Measures: Evidence From Turkey," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(14), pages 1-11.
    11. repec:mth:ijafr8:v:8:y:2018:i:4:p:438-456 is not listed on IDEAS
    12. Jinghui Sun & Pamela Kent & Baolei Qi & Jiwei Wang, 2019. "Chief financial officer demographic characteristics and fraudulent financial reporting in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(4), pages 2705-2734, December.
    13. Demirović Lejla & Isaković-Kaplan Ševala & Proho Mahir, 2021. "Internal Audit Risk Assessment in the Function of Fraud Detection," Journal of Forensic Accounting Profession, Sciendo, vol. 1(1), pages 35-49, June.
    14. Redhwan Ahmed Al-Dhamari & Bakr Al-Gamrh & Ku Nor Izah Ku Ismail & Samihah Saad Haji Ismail, 2018. "Related party transactions and audit fees: the role of the internal audit function," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(1), pages 187-212, March.
    15. Ruchi Agarwal, 2018. "A multiple perspective view to rampant fraudulent culture in the Indian insurance industry," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 16(4), pages 416-437.
    16. Christ, Margaret H. & Masli, Adi & Sharp, Nathan Y. & Wood, David A., 2015. "Rotational internal audit programs and financial reporting quality: Do compensating controls help?," Accounting, Organizations and Society, Elsevier, vol. 44(C), pages 37-59.
    17. Jacqueline Christensen & Pamela Kent & Tom Smith, 2016. "The decision to outsource risk management services," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 56(4), pages 985-1015, December.
    18. Karen Benson & Peter M Clarkson & Tom Smith & Irene Tutticci, 2015. "A review of accounting research in the Asia Pacific region," Australian Journal of Management, Australian School of Business, vol. 40(1), pages 36-88, February.
    19. Gamble, Edward N. & Muñoz, Pablo, 2021. "How tax incentives slow down positive change in social impact ecosystems and what can we do about it," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    20. Clive Gaunt & Steven Cahan, 2014. "Accounting and Finance: authorship and citation trends," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 54(2), pages 441-465, June.
    21. Redhwan Al-Dhamari & Almahdi Almagdoub & Bakr Al-Gamrh, 2018. "Are audit committee characteristics important to the internal audit budget in Malaysian firms?," Contaduría y Administración, Accounting and Management, vol. 63(2), pages 21-22, Junio.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:9:y:2020:i:4:p:377-384. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.