Fraud Star Drives to Asset Misappropriation Moderated by Internal Controls

Abstract

The objective of this study was to obtain empirical evidence in which a fraud star, representing five contributing factors to fraud, influences asset misappropriation and that internal controls moderate the effect of fraud star with respect to asset misappropriation. The study used a descriptive research method with a quantitative approach. The primary data included 49 indicators distributed to 282 employees who were employed in 5 state-owned companies (BUMN) in Indonesia. The data collection was performed by using a purposive sampling method and analytical method of structural equation modeling (SEM), while partial least square (PLS) were used for data analysis. Based on the results, it showed that the causes commonly associated with fraud, namely pressure, opportunity, justification, and capability have a positive effect on asset misappropriation, while integrity and internal controls operate in the opposite way. It has also been found that internal controls do not undermine the influence of pressure, opportunity, justification, and capability with respect to asset misappropriation. Furthermore, it does not strengthen the influence of integrity on asset misappropriation.

A Confirmatory Factor Analysis of the Fraud Pentagon Instruments for Measurement of Fraud in the Context of Asset Misappropriation in Malaysia

“…At the moment, asset misappropriation usually occurs with both cash and non-cash assets. Because of this, asset misappropriation is split into two categories: (1) cash misappropriation, which is fraud related to cash assets and holding payment checks for vendors; and (2) non-cash misappropriation, which is fraud related to non-cash assets (such as using company facilities for personal gain) (Siahaan, Umar, & Purba, 2019). Numerous reports on workplace fraud have been produced over the years.…”

Efektivitas Whistleblowing System Dan Sistem Pengendalian Gratifikasi Terhadap Pencegahan Fraud Pada Sektor Publik Yang Dimoderasi Oleh Pendeteksian Fraud

“…Association of Certified Fraud Examiners dalam Siahaan et al (2019) mengklasifikasikan fraud ke dalam tiga jenis yang biasa disebut sebagai fraud tree, yaitu a) asset misappropriation, antara lain penyalahgunaan kas dan non kas; b) fraudulent financial statements, antara lain tidak melaporkan sebagaimana yang seharusnya; dan c) corruption, antara lain konflik kepentingan, suap, gratifikasi illegal, dan pemerasan. Cressey dalam Siahaan et al (2019) mengungkapkan tiga penyebab seseorang pelaku pelanggaran melakukan fraud atau disebut fraud triangle yaitu adanya tekanan, peluang, dan rasionalisasi, yang kemudian dikembangkan oleh Wolfe et al (2004) menjadi fraud diamond dengan menambahkan faktor kapabilitas. Siahaan et al (2019) kemudian menambahkan faktor integritas yang menyebabkan seseorang dapat melakukan fraud sebagai faktor kelima dan disebut sebagai fraud star.…”

Peran Audit Internal dalam mencegah fraud di tengah wabah covid-19 (Study Empiris RSUD Dr. Soetomo Surabaya)

“…fraud merupakan tindakan yang disengaja atau kelalaian yang dirancang untuk menipu pihak lain, sehingga korbannya menderita kerugian dan atau pelaku mendapatkan keuntungan (Rustendi, 2018). Berdasarkan hasil penelitian (Siahaan et al, 2019) (Siahaan et al, 2019) menunjukkan bahwa penyebab umum terkait dengan fraud, yaitu pressure, opportunity, justification.…”