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/).

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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  -