Management Accounting as an Instrument of Financial Fraud Mitigation

1Wandy Zulkarnaen, Agus Bagianto, Sabar and Dasep Heriansyah

353 Views
85 Downloads
Abstract:

Financial fraud in the financial sector of the State of Indonesia reached 43.1 percent ranked second in Southeast Asia after the State of Vietnam which amounted to 58.2 percent. The financial fraud is intentional, organization, requires planning,false representation, deceit, and continue to occur despite anti-fraud legislation. This qualitative study explores the perception of a purposive sample of 20 accountants, examiners and investigators in Indonesia on how to reduce corporate financial fraud. The findings reveal that Management Accounting is able to reduce fraud corporate finance requires improvement ineducation, training, detection, prevention, and internal control. The new fraud mitigation types are emerging that integrate differential agency theory, association theory, exogenous and endogenous fraud factors that might help explain and predict behavioral patterns exhibited by financial fraud perpetrators.

Keywords:

Management Accounting, Mitigation, Financial Fraud.

Paper Details
Month2
Year2020
Volume24
IssueIssue 3
Pages2471-2491