THE INFLUENCE OF FRAUD TRIANGLE FRAMEWORK TO THE FRAUD PREVENTION AND DETECTION PROGRAMS IN PT. XX

• Main Author: Bethseba Gabriela, Miranda
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/76513
• Institution: Institut Teknologi Bandung

Given the significant variability of fraud instances that have happened in businesses of all sizes, it’s captivating that despite their complexity, the fraud triangle's elements can be used to explain all of them. As a result, the researcher was compelled to examine the impact of this framework, particularly its proxies from fraud hexagon, on fraud programs. This report aims to provide a thorough analysis of the influence the fraud triangle has towards the fraud prevention and detection programs, particularly at PT. XX. This qualitative research data collecting comprises of two main target populations of sources, the internal auditor team and the company’s management through a semi-structured interview approach where later the data is processed using the in vivo and pattern coding technique. It is found out from the study that 3 proxies of the fraud triangle which are stimulus, opportunity, and rationalization has a significant and positive causal link to a fraud programs described in the company’s fraud SOP, 2 proxies which are capability and ego also have positive influence, but 1 proxy that is collusion has negative influence. The analysis came to the conclusion that the internal auditor team used the fraud triangle framework to identify patterns in fraud justifications and then developed a number of preventive fraud programs that management and users will put into place, with the goal of reducing the amount of fraud occurring in PT. XX. Further findings included the mutually reinforcing roles undertaken by the two divisions under study, in creating the SOP and carrying out the company's fraud programs, which the study contends has already been effectively executed.