Does Forensic Accounting Matter? Diagnosing Fraud Using the Internal Control System and Big Data on Audit Institutions in Indonesia

Mardjono, Enny Susilowati; Suhartono, Entot; Hariyadi, Guruh Taufan

doi:10.37394/23207.2024.21.53

Cited by 3 publications

References 25 publications

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Evaluating Internal Control Mechanisms in Malaysian Public Sector Initiatives: Insights from the Public Accounts Committee (PAC) Reports

Ahmad Zazili,

Abu,

Basri

et al. 2024

IMBR

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This study examines internal control challenges in Malaysian government projects, drawing on Public Accounts Committee (PAC) reports from 2019 to 2022. The focus on this period stems from the shift in PAC chairmanship from government to opposition, which enhanced perceived independence. However, the literature suggests that the PAC’s success depends more on collaborative decision-making than on the chairman’s political affiliation. Analyzing 29 government agencies across various sectors revealed recurring weaknesses in internal controls. The study employed the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-Integrated Framework (ICIF) to systematically identify these weaknesses. A content analysis method was used to examine the themes, which were grouped into five ICIF components: control environment, risk assessment, control activities, information and communication, and monitoring. Weaknesses in the control environment include conflicts of interest, compromised ethical values, inadequate governance, and a lack of accountability and transparency. Risk assessment deficiencies were found in financial risk management, procurement and acquisition risks, geopolitical and strategic risks, intellectual property and technology risks, and project management risks. Control activity weaknesses involved poor resource and process management, non-compliance, and flawed decision-making. Information and communication issues included poor documentation, inadequate system integration and data sharing, limited stakeholder engagement, weak communication protocols, and poor information management. Monitoring deficiencies were noted in regulatory compliance, contract management, financial oversight, monitoring systems, and disbursement tracking. Addressing these weaknesses in internal controls is crucial for minimizing the risks of fraud, waste, and loss of public trust

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Evaluating Internal Control Mechanisms in Malaysian Public Sector Initiatives: Insights from the Public Accounts Committee (PAC) Reports

Ahmad Zazili,

Abu,

Basri

et al. 2024

IMBR

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How Do Innovative Improvements in Forensic Accounting and Its Related Technologies Sweeten Fraud Investigation and Prevention?

Haddad,

Alharasis,

Fraij

et al. 2024

Wseas Transactions on Business and Economics

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The purpose of this article is to look at recent developments in forensic accounting that have to do with preventing and investigating fraud. The following new developments in forensic accounting are being studied by doing a thorough literature review: data analytics, cyber forensic accounting, and the impact of blockchain and cryptocurrencies on the field. We take a close look at each new trend, breaking it down into its uses, pros, disadvantages, and ethical implications. Case studies and real-world examples back up the findings, showing how effective these fraud prevention and investigation tendencies are. Investigations into financial crimes employing information technology have their own set of challenges, which the report sheds light on. Blockchain technology’s capacity to increase accountability, traceability, and transparency in financial transactions is also explored. To improve fraud detection and prevention efforts, the study finishes with suggestions for researchers, practitioners, and policymakers to adapt to and take advantage of these new trends. To effectively identify and discourage financial crime in the constantly evolving world of new technology, the study finishes by stressing the necessity for continuous research and innovation, highlighting the dynamic character of forensic accounting.

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Financial Advisory Systems as a Tool for Audit Efficiency

Goyal,

Kumar

2024

Robo-Advisors in Management

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Forensic audits and statutory audits are both used to check the validity of financial statements. In light of this, present research is conducted to study and compare the impact of forensic auditing techniques and statutory auditing techniques' in effectiveness of fraud detection along with the financial advisory system. To meet the research objective, a questionnaire was framed for all three independent variables, that is forensic auditing techniques, statutory audit techniques, and financial advisory system and one dependent variable that is fraud detection. Out of 3, forensic audit techniques was found to be more relevant then statutory auditing techniques and financial advisory system for the purpose of fraud detection. The results of the research have necessary managerial and social implications, which will contribute by providing the road map for developing a concrete mechanism for fraud detection.

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Does Forensic Accounting Matter? Diagnosing Fraud Using the Internal Control System and Big Data on Audit Institutions in Indonesia

Cited by 3 publications

References 25 publications

Evaluating Internal Control Mechanisms in Malaysian Public Sector Initiatives: Insights from the Public Accounts Committee (PAC) Reports

Evaluating Internal Control Mechanisms in Malaysian Public Sector Initiatives: Insights from the Public Accounts Committee (PAC) Reports

How Do Innovative Improvements in Forensic Accounting and Its Related Technologies Sweeten Fraud Investigation and Prevention?

Financial Advisory Systems as a Tool for Audit Efficiency

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