Management Accounting as an Instrument of Financial Fraud Mitigation

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.