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The Connection and Underlying Cause between Financial Statement Fraud Cases

Authors:

Bambang Leo Handoko,

Hery Harjono Muljo,

Adelia Yulma BudiartoAuthors Info & Claims

ICEBI '21: Proceedings of the 2021 5th International Conference on E-Business and Internet

Pages 162 - 167

https://doi.org/10.1145/3497701.3497727

Published: 24 January 2022 Publication History

Abstract

There are more and more cases of fraud associated with manipulation of financial statements today. Various schemes and management motivations for manipulating financial statements. However, is there a common thread between these cases that can be studied, so that it can provide a conclusion about prevention and improvement in the future? Our study seeks to present an analysis of cases of financial reporting fraud that occur in the world from a financial audit point of view. This research is a qualitative research in the form of inductive case study analysis. We present case studies using the background flow, financial statement fraud schemes, management motivation and financial auditor involvement. At the end we made a conclusion, drew a connection and underlying discussion along with lessons learned about the case. The results of our study found that the existence of pressure in the form of high expectations, failure of expansion and overly optimistic investment and misuse of company assets for personal use became the common underlying cause among these financial fraud cases. The implication of our study is that financial auditor or forensic accountant should pay more attention when those factors occurs or identified when they conducting audit or examination.

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Cited By

Lin Lindawati AHandoko B(2022)How Information Technology Literacy Moderated Factors Affecting Quality of Computer-Based Audit2022 4th International Conference on Cybernetics and Intelligent System (ICORIS)10.1109/ICORIS56080.2022.10031571(1-6)Online publication date: 8-Oct-2022
https://doi.org/10.1109/ICORIS56080.2022.10031571

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cover image ACM Other conferences

ICEBI '21: Proceedings of the 2021 5th International Conference on E-Business and Internet

October 2021

200 pages

ISBN:9781450385657

DOI:10.1145/3497701

Copyright © 2021 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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New York, NY, United States

Publication History

Published: 24 January 2022

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ICEBI 2021

ICEBI 2021: 2021 5th International Conference on E-Business and Internet

October 15 - 17, 2021

Singapore, Singapore

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Cited By

Lin Lindawati AHandoko B(2022)How Information Technology Literacy Moderated Factors Affecting Quality of Computer-Based Audit2022 4th International Conference on Cybernetics and Intelligent System (ICORIS)10.1109/ICORIS56080.2022.10031571(1-6)Online publication date: 8-Oct-2022
https://doi.org/10.1109/ICORIS56080.2022.10031571

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