The Implementation of Fraud Risk Assessment in Anticipating Fraud in the Goods Purchasing Cycle Case Study on Small and Medium Enterprise: PT X
- DOI
- 10.2991/apbec-18.2019.23How to use a DOI?
- Keywords
- Fraud Risk Assessment, Fraud, Purchasing, SME, Internal Control.
- Abstract
The aim of this study is to conduct a fraud risk assessment on the goods purchasing cycle in a company denoted as ‘PT X’ among the strategies it should deploy to anticipate fraud that may threaten its sustainability. By deploying Fraud Risk Assessment, the management can set priority controls and adopt appropriate prevention strategies to counter various fraud schemes based on the level of risk. The Fraud Risk Assessment in this study was conducted in accordance with the guidelines of the Committee of Sponsoring Organizations Fraud Risk Management Guide (2017). This study used a qualitative approach with field study data collection techniques. Based on the results of the assessment on the goods purchasing cycle of PT X, the greatest vulnerability was found in its Mark-up Billing, Kickback, and Theft of Inventory and Equipment schemes. Consequently, the management was advised to pay particular attention to anticipating risk in these areas. The recommended anti-fraud strategy - based on the application of the twin pillars of fraud prevention and fraud detection – should be implemented to minimize the risk of fraud and potential losses, and to secure the company's assets.
- Copyright
- © 2019, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Mega Silvia Fahriani AU - Agustinus Nicholas Tobing PY - 2019/07 DA - 2019/07 TI - The Implementation of Fraud Risk Assessment in Anticipating Fraud in the Goods Purchasing Cycle Case Study on Small and Medium Enterprise: PT X BT - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018) PB - Atlantis Press SP - 174 EP - 180 SN - 2352-5428 UR - https://doi.org/10.2991/apbec-18.2019.23 DO - 10.2991/apbec-18.2019.23 ID - SilviaFahriani2019/07 ER -