Abstract
Some cases of corruption have taken place in several universities in Indonesia. To prevent and handle the cases, internal auditors play pivotal roles in
detecting and preventing fraud. Therefore, effective methods to detect and prevent fraud are needed. The methods are expected to set the appropriate
measures to detect and prevent fraud effectively. This research proposed a question how the internal auditors perceive the effectiveness of fraud
detection and prevention methods. The research aimed to conduct a descriptive analysis towards the auditor’s fraud-related knowledge and examine
the internal auditor’s perception towards the effectiveness of fraud detection and prevention methods. The objects of this research were internal
auditors who worked at universities in Indonesia where the respondents were randomly selected. This study used a series of questionnaires to gather
the information from the previously-surveyed respondents. The questionnaires in this study refered to the previous research conducted by Bierstaker
et al. (2006). The results of this research reveal that the most effective fraud detection and prevention procedures are operational audits, internal control
review and improvement, cash reviews, code of sanctions against suppliers/contractors and ethics officers. Meanwhile, five most ineffective of fraud
prevention and detection procedures are virus protection, financial rasio, firewalls, filtering software, and organizational use of forensic accountants.
The results of this study differs from the previous research conducted by Bierstaker et al. (2006), which suggests that the most effective procedure for
fraud detection and prevention is the use of information technology
Details
| Other ID | JA74ZH72CY |
|---|---|
| Journal Section | Research Article |
| Authors | |
| Publication Date | May 1, 2016 |
| Published in Issue | Year 2016 Volume: 6 Issue: 3 |