scholarly journals Implementation of Fraud Risk Assessment To Mitigate The Fraud Risk in Tax Audit Process

2020 ◽  
Vol 4 (02) ◽  
pp. 77
Author(s):  
Qomarudin Alfatah ◽  
Nicholas Agustinus L. Tobing
Keyword(s):  
Risk Assessment ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Audit Process ◽  
Fraud Risk ◽  
Quantitative And Qualitative Research ◽  
Risk Appetite ◽  
Directorate General ◽  
Tax Audit ◽  
High Level

<p><em>The emergence of a variety of fraud schemes, ineffective internal controls, and the number of fraud cases that occur in the taxation sector, encourage researches related to fraud risk assessment, especially in tax audit activi</em><em>ties</em><em>. This study aimed to identify potential fraud schemes risks, evaluate risk controls and discuss anti-fraud strategies using a case study at the Directorate General of Taxes in Indonesia. With a sequential mix method approach through a combination of quantitative and qualitative research, and by using rational choice theory, this research extends the literature of previous studies by providing evidence that fraud can be prevented by increasing the probability to detect fraud scheme. This study fills out the gaps related to fraud risk assessment research in </em><em>the </em><em>tax audit </em><em>process</em><em> which have been rarely performed in the literatures.</em></p><em>The results concluded that of the 20 fraud scenarios identified, there were 7 fraud scenarios categorized as high level of residual fraud risk, 9 fraud scenarios at the medium level, and the rest at low levels. This study discussed appropriate controls to mitigate the residual fraud risk to be maintained at the level of organizational risk appetite. In addition, this study also discussed anti fraud strategies that are relevant to the organization, through evaluating anti-fraud strategies that have been previously implemented and anti-fraud strategies that have never been implemented</em>

scholarly journals The Implementation of Fraud Risk Assessment and Anti-Fraud Strategy in Government Institution XYZ

2022 ◽  
Vol 6 (2) ◽  
pp. 285
Author(s):  
Teguh Wibowo ◽  
Agustinus Nicholas L. Tobing
Keyword(s):  
Risk Assessment ◽  
Group Discussion ◽  
Study Approach ◽  
Fraud Risk ◽  
Risk Scenarios ◽  
Risk Appetite ◽  
Medium Level ◽  
The Government ◽  
High Level ◽  
Government Institution

Government Institution XYZ is one of the government institutions trying to build bureaucratic reform and minimize fraud risk. This study attempted to conduct a fraud risk assessment to identify, analyze, evaluate, and determine appropriate anti-fraud strategies to various fraud risk scenarios that may occur in Government Institution XYZ. The research was conducted qualitatively with a case study approach. The data were collected through document analysis, questionnaires, interviews, and Focused Group Discussion (FGD). Based on the FRA results, researchers identified thirteen fraud risk scenarios that organization needs to anticipate. Considering the organization’s risk appetite, there are two very high-level risk scenarios, four high-level risk scenarios, four medium-level risk scenarios, and three low-level risk scenarios among all of these risk scenarios. Several anti-fraud strategies need to be implemented to reduce fraud risk, including preventive, detective, and responsive strategies by optimizing existing and other relevant anti-fraud strategies.

scholarly journals Investigating Fraud Risks Assessment Practices in Public Sector Audits

2021 ◽  
Vol 16 (1) ◽  
pp. 183-205
Author(s):  
Mohamad Mahsun ◽  
◽  
Nafsiah Mohamed ◽  
Sharifah Norzehan Syed Yusuf ◽  
Indrawati Yuhertiana ◽  
...  
Keyword(s):  
Risk Assessment ◽  
Public Sector ◽  
Audit Process ◽  
Planning Stage ◽  
Audit Planning ◽  
Fraud Risk ◽  
Auditing Standards ◽  
The Government ◽  
The Impact ◽  
Audit Standards

Fraud Risk Assessment (FRA) is claimed to be an important activity at the audit planning stage in both the private and public sectors. In fact, because of the importance of FRA activities, Auditing Standards (SAS 99, ISA 240, ISSAI 1240) have required auditors to carry out FRAs at the audit planning stage. FRA is considered as the core activity of financial audit planning because of the impact of fraud on the sustainability of an entity, quality of life, and economic growth. This study aimed to determine the practice of FRA in public sector audits and to find out more about the obstacles faced by auditors during the audit process and to find out the causes of these obstacles by considering the approach to the Audit Standards used. This study found that auditors’ performance can be determined based on their complete compliance with audit standards. We have encountered a serious problem that requires firm action from the government or a competent official, namely the auditor’s willingness in preparing the Fraud Risk Assessment Matrix. In addition, we recommend the Audit Standards Board to adopt international public sector auditing standards and disseminate them through training for auditors, students, and professionals. Keywords: fraud risk assessment, public sector audit, auditor competency

Cultural Differences in Auditors' Compliance with Audit Firm Policy on Fraud Risk Assessment Procedures

2018 ◽  
Vol 37 (4) ◽  
pp. 25-48 ◽  
Author(s):  
Olof Bik ◽  
Reggy Hooghiemstra
Keyword(s):  
Risk Assessment ◽  
Cultural Differences ◽  
Internal Quality ◽  
Audit Process ◽  
Audit Firm ◽  
Fraud Risk ◽  
National Differences ◽  
Assessment Procedures ◽  
The Impact ◽  
Cross National

SUMMARY Internationally operating audit firms rely heavily on global firm policies and audit methodologies to ensure consistency of audits across the globe. However, cultural differences are likely to affect auditors' compliance with such firm-wide systems of control. In this study we use proprietary data from a Big 4's internal quality reviews, involving 1,152 audit engagements from 29 countries, to assess the impact of cross-national cultural differences on auditors' compliance (or not) with the firm's policy in a specific yet crucial and culturally susceptible area of the audit process: fraud risk assessment procedures. We find that collectivism and societal trust are negatively associated, while religiosity is positively associated with compliance with global firm policy. However, we do not find evidence that compliance and power distance are associated. Overall, our findings suggest that cross-national differences in auditors' compliance with global audit firm methodology (or not) are associated with cross-national cultural differences. An implication of our findings is that a uniform local application of global audit methodologies may remain an illusion unless different, targeted approaches for different regions in the world are considered.

scholarly journals FRAUD RISK ASSESSMENT: EXPERIMENTAL STUDY ON THE ALTERNATIVE FRAUD MODEL AND AUDITOR RISK PREFERENCES

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Arintyas Kristi Artati ◽  
Suzy Noviyanti
Keyword(s):  
Risk Assessment ◽  
Experimental Study ◽  
High Risk ◽  
Risk Preferences ◽  
Risk Preference ◽  
Low Risk ◽  
Audit Process ◽  
Fraud Risk ◽  
Central Java ◽  
Public Accountant

Fraud risk assessment is an important part of the audit process and one of the toughest challenges faced by auditors. In considering fraud risk assessment, fraud models and risk preferences can influence auditor’s decisions. This study uses a 2x2 between-subject experimental design with a total of 110 auditors of public accountant firms in Central Java as participants and produces 60 data ready for processing. Participants were formed into 4 groups with different treatments which the treatments consist of Diamond Fraud model with high and low risk preferences and Pentagon Fraud model with high and low risk preferences. The results show that the use of Pentagon Fraud model will result a more conservative fraud risk assessment. When auditors dare to take high risk action, the resulting fraud risk assessment will be low. In addition, the fraud model and risk preference variables show a significant influence on the performing of fraud risk assessment. There is an interaction between fraud models and auditors’ risk preferences in the performance of fraud risk assessment.

Rational Choice Theory and the 1990 Party Merger in South Korea

OUGHTOPIA ◽  
2020 ◽  
Vol 35 (2) ◽  
pp. 247-282
Author(s):  
In-Kyun Kim ◽  
Myeong-Geon Koh
Keyword(s):  
South Korea ◽  
Rational Choice ◽  
Rational Choice Theory ◽  
Choice Theory

POLITICS-LAW CONVERGENCE OR DIVERGENCE? 'SMALL' POLITICAL PARTIES, REALPOLITIKAND SOUTH AFRICA'S 20 YEARS OF DEMOCRACY

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Kealeboga J Maphunye
Keyword(s):  
Game Theory ◽  
Political Parties ◽  
Rational Choice ◽  
Significant Role ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Democratic Consolidation ◽  
Secondary Research ◽  
Extant Literature ◽  
African Charter

This article examines South Africa's 20-year democracy by contextualising the roles of the 'small' political parties that contested South Africa's 2014 elections. Through the  prism  of South  Africa's  Constitution,  electoral legislation  and the African Charter on Democracy, Elections and Governance, it examines these parties' roles in South Africa's democratisation; their influence,  if any, in parliament, and whether they play any role in South Africa's continental or international engagements. Based on a review of the extant literature, official documents,  legislation, media, secondary research, reports and the results of South Africa's elections, the article relies on game theory, rational choice theory and theories of democracy and democratic consolidation to examine 'small' political parties' roles in the country's political and legal systems. It concludes that the roles of 'small' parties in governance and democracy deserve greater recognition than is currently the case, but acknowledges the extreme difficulty experienced by the 'small'  parties in playing a significant role in democratic consolidation, given their formidable opponent in a one-party dominant system.

Nuclear Weapons, South Asia and Morality

Think India ◽  
2019 ◽  
Vol 22 (3) ◽  
pp. 535-546
Author(s):  
ABHISHEK CHOUDHARY
Keyword(s):  
South Asia ◽  
Nuclear Power ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Great Powers ◽  
Moral Perspective ◽  
The Us ◽  
Positive Duties ◽  
Nuclear Development ◽  
Asian Context

The paper analyses the concerns arising from a moral perspective in the context of a renewed arms race in South Asia. It challenges the idea that possession of nuclear power could in any way contribute to any sort of balance. The emulation of so-called great powers and expecting that balance would arrive as it did in the case of the US and the erstwhile-USSR during cold war is detrimental to the temporal and spatial uniqueness of South Asia. Deterrence, based on rational choice theory, does not apply to the South Asian context due to ambiguity owing to mutual mistrust especially in the case of India and Pakistan. Also, it no longer only sates that are sole actors in the international arena. One cannot expect the non-state actors to behave in a rational manner. Furthermore, the idea of ‘credible minimum deterrence’ itself is questionable as it is a flexible posture adjusted to relative prowess and ambiguity in policy further aggravates the situation. The paper argues from a consequentialist notion of ethics and argues that the principles of harm and equity ought be part of nuclear decision-making. Another aspect that the paper uncovers relates to the ‘reification’ of nuclear power. Using a neo-Marxist framework and concept of Lukács, the paper argues that it is no longer the state as a repository of power that decides the trajectory of nuclear development. Rather the nuclear technology has started to dictate the way states are looking at regional and international relations. This inverted relationship has been created due to neglect of any ethical toolkit. The paper thus proposes an ethical toolkit that focuses on the negative duties of not to harm and also the positive duties to create conditions that would avoid harm being done to people.

Nowe podejście do harmonizacji technicznej w Unii Europejskiej a swoboda przepływu towarów

2016 ◽  
pp. 70-86
Author(s):  
Iwona Miedzińska
Keyword(s):  
European Union ◽  
Consumer Protection ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Single Market ◽  
The European Union ◽  
Primary Method ◽  
Effective Response ◽  
New Approach ◽  
Free Movement Of Goods

This article is about the new approach directives and their impact on ensuring the free movement of goods in the single market. The author analysed the relevant legislation of the European Union adopted in the field of technical harmonisation: regulations and directives. The primary method of research used in this article is the legal and institutional analysis. Neofunctionalism and rational choice theory were also helpful to explain the processes of integration in this area. The analysis shows that the new approach directives affect the streamlining of procedures for the movement of goods in the single market. However, despite the simplification of procedures for the movement of goods, an adequate level of safety and consumer protection is ensured. The member states and the European Commission have effective response mechanisms when a product endangers life, health or safety of consumers.

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