THE EFFECTIVENESS OF FRAUD EARLY WARNING SYSTEM IN FINANCIAL REPORTING: WHAT IS THE MOST EFFECTIVE METHOD AND TECHNOLOGY USED?

Irma, Paramita Sofia (2016) THE EFFECTIVENESS OF FRAUD EARLY WARNING SYSTEM IN FINANCIAL REPORTING: WHAT IS THE MOST EFFECTIVE METHOD AND TECHNOLOGY USED? South East Asia Journal of Contemporary Business, Economics and Law, 9 (1). pp. 14-21. ISSN 2289-1560

Text THE EFFECTIVENESS OF FRAUD EARLY WARNING SYSTEM IN FINANCIAL.pdf - Published Version Download (185kB)

Abstract

This research aims to examine the perceptions of internal and external auditors regarding the effectiveness of methods of detection and prevention of financial fraud actions, procedures or techniques are believed to be effective in reducing measures of financial fraud and software or technology that is effective to detect and prevent financial fraud actions. The research was conducted by dividing the questionnaire directly to the External Auditor who works at Big Four Public Accountant Firm and Internal Auditor at one of the largest telecommunications companies in Indonesia. This study analyzed by independent sample T-test. Results of this research shows that from 35 methods and software used to detect and prevent financial fraud, there are 3 (three) methods have significant differences between the perceptions of internal auditors and external auditors on the effectiveness of methods of detection and prevention of financial fraud action those are code of sanctions against suppliers/contractors, increased attention of senior management, and fraud reporting policy Software or technology that are believed to be effective in reducing measures of financial fraud are password protection, continuous audit and filtering software. Overall, the inventory observation, bank reconciliation, and review of internal control are procedures or techniques which are believed to be effective in reducing financial fraud.The theoretical implications of this research deals with the theory relating to fraud and internal control, especially in relation to the theory of Internal Control over Financial Reporting (ICOFR). Key words: perception, financial fraud, internal auditors, external auditors, the effectiveness of methods of detection and prevention of financial fraud.

Item Type:	Artikel
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Fakultas Humaniora dan Bisnis > Prodi Akuntansi
Depositing User:	Admin Repository
Date Deposited:	05 Nov 2020 03:57
Last Modified:	05 Nov 2020 03:57
URI:	http://eprints.upj.ac.id/id/eprint/844

Actions (login required)

View Item