RED FLAGS AND FRAUD PREVENTION ON RURAL BANKS

Ni Wayan Rustiarini (), Ni Nyoman Ayu Suryandari () and I Kadek Satria Nova ()
Additional contact information
Ni Wayan Rustiarini: Mahasaraswati Denpasar University
Ni Nyoman Ayu Suryandari: Mahasaraswati Denpasar University
I Kadek Satria Nova: Mahasaraswati Denpasar University

Bulletin of Monetary Economics and Banking, 2016, vol. 19, issue 2, 177-206

Abstract: This paper identifies the effectiveness of the red flags in detecting fraudulent financial statements, as well as preventive measures appropriate to implemented in Bank Perkreditan Rakyat (BPR). We use field survey convering the whole BPR in Province Bali, covering 60 indicators provided to 101 internal auditors from 86 BPR. The result shows that the highest dimensions within the Fraud Diamond are capability. Efforts to prevent the fraud would be the culture of honesty and high ethics, evaluating anti-fraud process and control, and developing an appropriate oversight process.

Keywords: financial risk; liquidation; corporate governance; audit (search for similar items in EconPapers)
JEL-codes: G32 G33 G34 M42 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=1160&context=bmeb (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:19:y:2016:i:2c:p:177-206

DOI: 10.21098/bemp.v19i2.629

Access Statistics for this article

Bulletin of Monetary Economics and Banking is currently edited by Paresh Narayan

More articles in Bulletin of Monetary Economics and Banking from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().