Fraud definition is a fraudulent act committed intentionally by one or more individuals. In a company, this problem often occurs because of an element of intent. Actions for this fraud can occur in a management.
In an act of fraud, there is a trick that is useful to gain an unfair advantage. This is an act or action that violates the law. Fraud also tends to be an act related to fraud, crime and provides financial benefits and benefits to the party committing fraud and fraud.
According to Albrecht et al. (2012: 6), fraud definition is a form of fraudulent act that occurs within a company. This is intended to benefit both individually and as a group.
The causes of fraud
Pressure causes someone to cheat for a number of reasons, ranging from a person’s urge to cheat for economic, emotional, or value reasons.
Opportunities or opportunities are a driving factor for fraud. Opportunities for fraud is usually occured because of weak company controls, lack of good regulatory standards in agencies.
Unfavorable work situation
The existence of multi job desks or high authority, weak regulations in a country.
This factor often occurs when a person performs self defense, where he defends himself so that he is not found out if he is the culprit.
In The Association of Certified Fraud Examiners, fraud is divided into three groups based on the type of action, namely
Deviation of Assets
Deviation on assets is the most common type or form of fraud. Deviation on these assets is easiest to detect because assets can be calculated or measured.
This action is generally carried out by officials in a company. This activity is aimed to cover up the real financial condition. In the case of financial statements, it is usually engineered for unilateral interests.
Corruption and Bribery
Not only often occurs in a company, this is also often found in some developing countries and lack of good governance. This problem is difficult to detect because many parties are involved to enjoy the benefits.
Examples of problems that often occur are conflicts of interest, bribery, extortion, and illegal acceptance. In this case, the legal basis for a person who commits fraud or fraud is article 378 of the Criminal Code (KUHP) which contains the charges for the perpetrators of fraud.
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To reduce the risk of this problem, the Albrecht brothers and Zimbelman (2009) provide suggestions that need to be done as follows:
Have a good control system
Improve the flow of good communication and information.
Analyze risk assessment
Having a good activity and control environment, one of which is recruiting prospective employees who pay attention to ethics and cooperation.
In dealing with fraud, it is necessary to have the right accounting software. Because besides being able to assist in terms of recording and presenting financial statements, it also functions as a control in granting authorization from the lowest level to the highest level of management. Accounting software has tiered access and authorization rights, so that there are sections above it that will do the approval as well as cross-check what is input by the user.
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