Topic 5: Fraud Risk Management

Definition of Fraud
Tindakan curang yang dilakukan sedimikian rupa secara sengaja sehingga
menguntungkan diri sendiri dan memberikankerugian untuk pihak lain.

Example of Fraud:

1. Ghost employees. The payroll staff can create fake employees and then pay these
"ghost employees," directing the funds into their own bank accounts. Weak controls
over the payment of employees makes this type of fraud more likely.
2. Asset theft. Any employee can steal from an organization by making off with assets,
such as cash or fixed assets. Weak controls can encourage employees to engage in
this activity.
3. Unauthorized use. An employee may use company assets in an unauthorized
manner, such as driving a company car for personal use, or using a company
condominium for personal use. Though the asset is not stolen, it is being consumed,
so its value lessens over time.
4. Financial statement falsification. An organization can falsify its financial
statements to reveal excellent financial results. These documents can then be used
as the basis for obtaining bank loans or selling stock to investors. Such falsification
can be conducted entirely within the accounting department, or be forced upon it
by management.

How to Prevent the Frauds:

1. Ghost Employee: Menyiapkan dokumentasi dan authorisasi dari manajemen

sebelum masukan ke payroll, memisahkan antara pengawasan personal record dan
payroll record.
2. Financial statement falsification: Maintain control internal, pemisahan tugas-tugas
antar akuntan, melakukan audit secara regular
3. Unauthorized use: Pembuatan firewall perusahaan yang kuat, penggunaan two
factor authentication, Monitoring data secara regular.
 4. Asset Theft: Supervise karyawan secara dekat, control cash receipt, penggunaan
system purchase order, audit secara informal, dan manage inventory dan pakai
security system.

Why the FRM guide is needed:

Bagi organisasi, fraud dapat menjadi sebuah ancaman bagi perusahaan baik dalam sisi
image, reputasi, penacapaian perusahaan dan juga secara kesehatan finansial perusahaan.
Fraud Risk Management berguna untuk membuat suatu program positive yang diarahkan
untuk melakukan pencegahan adanya fraud diperusaaan dan juga program mitigasi setelah
dilakukannya fraud.