This study identifies potential fraud schemes, evaluates risk controls, and discusses anti-fraud strategies using a case study of the Directorate General of Taxes in Indonesia, conducted by exploring phenomena related to fraud risk in the scope of business processes. By using fraud triangle theory and rational choice theory, this research extends the literature by providing evidence that fraud can be prevented by increasing the probability of fraud-scheme detection. This study examines potential tax revenue activities rarely examined in the literature. Our results conclude that, out of 25 fraud scenarios, five were categorized as high risk and 11 were medium. This study discusses appropriate mitigation measures of residual fraud risks at the organizational level. Furthermore, we evaluate relevant anti-fraud strategies, both implemented and non-implemented.

<p><em>The emergence of a variety of fraud schemes, ineffective internal controls, and the number of fraud cases that occur in the taxation sector, encourage researches related to fraud risk assessment, especially in tax audit activi</em><em>ties</em><em>. This study aimed to identify potential fraud schemes risks, evaluate risk controls and discuss anti-fraud strategies using a case study at the Directorate General of Taxes in Indonesia. With a sequential mix method approach through a combination of quantitative and qualitative research, and by using rational choice theory, this research extends the literature of previous studies by providing evidence that fraud can be prevented by increasing the probability to detect fraud scheme. This study fills out the gaps related to fraud risk assessment research in </em><em>the </em><em>tax audit </em><em>process</em><em> which have been rarely performed in the literatures.</em></p><em>The results concluded that of the 20 fraud scenarios identified, there were 7 fraud scenarios categorized as high level of residual fraud risk, 9 fraud scenarios at the medium level, and the rest at low levels. This study discussed appropriate controls to mitigate the residual fraud risk to be maintained at the level of organizational risk appetite. In addition, this study also discussed anti fraud strategies that are relevant to the organization, through evaluating anti-fraud strategies that have been previously implemented and anti-fraud strategies that have never been implemented</em>