Fraud AuditPertemuan V

Matakuliah : F0184/Audit atas KecuranganTahun : 2007

Bina Nusantara

• 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

Learning Outcomes

3

Bina Nusantara

• Fraud audit and financial audit• Fraud Auditor Profile• Fraud Auditor Vs Financial Auditor

Outline Materi

4

Fraud Audit

Fraud audit is discipline that focus on the intuitive process. The patterns to look for are the exceptions and oddities. Also one goes behind and beyond those transactions to reconstruct what may have led to them and what has followed from them.

Fraud auditing is the discipline used to discourage, discern, and document such incident.

Bina Nusantara

5

Financial AuditFinancial auditing is intended to uncover material deviations and variances from standards of acceptable accounting and auditing practices or standard.

Financial auditing concentrates on the present – on the adequacy of internal controls, on the reliability, validity, and mathematical accuracy.

Bina Nusantara

6

Fraud Vs Financial AuditorThe main focus of the fraud auditor is not the

accounting system and internal controls against the standard (eg: IRFS, FASB) but:Where are the weakest link in this system’s chain of controls?What deviations from conventional good accounting practices are possible in this systemHow are off-line transactions handled, and who can authorize such transactionsWhat would be the simplest way to compromise this system?

Bina Nusantara

7

Fraud Vs Financial Auditor (Con’t)

What control features in this system can be bypassed by higher authorities?What is the nature of the work environment?

!!These questions may occur for years before they are discovered!!

Bina Nusantara

8

Fraud ConditionFraud usually occur in the following conditions:

Internal controls are absent, weak, or loosely enforcedEmployees are hired without due consideration for their honesty and integrityEmployees are poorly managed, exploited, abused, or placed under great stress to accomplish financial goals and objectivesManagement models are themselves corrupt, inefficient, or incompetentA trusted employee has an irresolvable personal problem, usually of a financial nature

Bina Nusantara

9

Fraud Condition (Con’t)Fraud usually occur in the following conditions:

The industry of which the company is a part has a history or tradition of corruptionThe company has fallen on bad times-it is losing money or market share, or its products or services are becoming obsolete

Bina Nusantara

10

Fraud Case

!! There is no simple formula for conducting a fraud audit, nor are there any generally accepted checklist or patterned interviews. Fraud is a human phenomenon; humans vary a great deal, as do frauds, in terms of the techniques used!!

Bina Nusantara

11

Fraud Case (con’t)

Most fraud are not discovered in the course of routine financial audits but though:

an allegation, complaint, or a rumor of fraud brought by a third party

an auditor’s intuition or general suspicion that something is awry

an exception from an expectation of a person senior to the suspect

the sudden discovery that something is missing

Bina Nusantara

12

Fraud Auditor Belief

Bina Nusantara

13

Fraud Auditor Traits and Skills

Bina Nusantara

14