MITIGATING FRAUDULENT RISKS: COMPANY CAPTAINS’ PERSPECTIVE

Lenny Gunawan

Abstract


Complete document sets and availability ability tocapture business flow have been underestimated among small-medium business practitioners, affecting the bigger chance of unnecessary loss and increasing risks which prone to fraudulent acts both originally from internal and external parties. This research is equipped with interview transcript involving Mr. Daniel Ifianto, CEO (Chief Executive Operational) of CV. Mandiri Jaya Agro-business (MJA), and his wife as CFO (Chief FinancialOfficer, which main business activity is exporting paddy and corn seeds as respondents.). Second Entity, as the research object, is a CV. DCK which is an architecture and interior design company, Mr. DK.Research Method used is a qualitative study which isinvestigating monetary and operational fraud, errors, and omissionsoccurred both intentional and unintentionally related to the availability of complete documents and Standard Operating Procedure(SOP) application. The research finding shows that solutions were found through creating sets of document copies, authorizations, and document cycle movements concluding parties and people involved both internally and externally. The implication was fraud has been significantly reduced, and the owner feels that applying a complete set of documents andproper authorization has been useful for monitoring the organization itself before fraud happens.

Keywords


Fraud; Risks; Accounting Information; Integrated Documents; Document Flow.

Full Text:

PDF

References


ACCA. 2010.Improving public sector financial management in developing countries and emerging economies. Accountants for Business, pp. 1-29.

Bhatt, G. D. 2001. Knowledge management in organizations: examining the interaction between technologies, techniques, and people. Journal of Knowledge Management, 5(1), pp. 68-75. http:// dx.doi.org/10.1108/13673270110384419.

Economist. 2002. The Real Time Economy.January 31.

FASB. 2006.Conceptual Framework for Financial Re- porting: Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information. Financial Accounting Series, Vol. 1260-001.

Gerdin, J., Greve, J. 2004. Forms of contingency fit in management accounting research-a critical review. Accounting, Organizations and Society, 29, 3-4, 303326. http://dx.doi.org/10.1016/S0361-3682(02)00096X.

Grande, U. E., Estebanez, P. R., and Colomina, M. C. 2010. The impact of Accounting Information Systems (AIS) on performance measures: empirical evidence in Spanish SMEs.The International Journal of Digital Accounting Research, 11(2011), pp. 25 – 43.

Huang, Huan-Tsae, Lee, Y. W., and Wang, R. Y. 1999. Quality information and knowledge. Prentice Hall PTR.

Ouda. 2003.Public Sector Accounting and Budgeting Reform: The Main Issues Involved. Economic and Social Council for Western Asia.

Romney, Marshall B., Steinbart, P. J., and Cushing, E. B. 1997. Accounting Information System. Seventh Edition, Addison-Wesley.

Salehi, M., Rostami, V., and Mogadam, A. 2010. Usefulness of Accounting Information System in Emerging Economy: Empirical Evidence of Iran. International Journal of Economics and Finance, 2(2).

Scavone, G. M. 2006. Challenges in internal environmental management reporting in Argentina. Journal of Cleaner Production, Vol 14, pp. 1276-1285.

Shinde, Kulkarni-Mairalpant. 2018.Electronic Accounting System. Aarhat Multidisciplinary International Education Research Journal (AMIERJ), ISSN-22785655, Vol. 7, Special Issue (1).

Soudani. 2012. The Usefulness of an Accounting Information System for Effective Organizational Performance. International Journal of Economics and Finance, Vol. 4, (5).

Terviozski. 2010.Innovation Practice and Its Performance Implication in Small to Medium Entreprises (SMEs) in the Manufacturing Sector: A ResourceBased View. Strategic Management Journal, ISSN: 31 (8), pp. 892-902.

Vasarhelyi, M. A., Teeter, R. A., and Krahel, J. 2010. Audit Education and the Real-Time Economy. Issues in Accounting Education, 25(3).

Wilkinson, J. W. 1993. Accounting Information Systems: Essential Concepts and Applications. Second Edition. New York: John Wiley and Sons Inc.

Zakaria, Ilias, and Wahab. 2017.A Survey on the Impact of Accounting Information System on Tasks Efficiency: Evidence from Malaysian Public Sector Agencies. International Review of Management and Marketing, ISSN: 2146-4405, Volume 7(1), pp.: 183190.




DOI: http://dx.doi.org/10.21776/ub.jam.2019.017.03.07

Refbacks

  • There are currently no refbacks.