This study aims to conduct the fraud risk assessment on the goods purchasing cycle at PT X as one of the strategies to anticipate fraud that threatens the company's sustainability. Through the Fraud Risk Assessment, management can set priority controls and appropriate prevention strategy for each fraud scheme based on the level of risk. The Fraud Risk Assessment in this study was conducted in accordance with the guidelines in COSO Fraud Risk Management Guide (2017). This study used a qualitative approach with field study data collection techniques. Based on the results of the assessment on the goods purchasing cycle at PT X, the Mark-up Billing Scheme, Kickback Scheme, and Theft of Inventory and Equipment scheme has the highest risk level so that the attention and effort in anticipating those risk must be prioritized by the management. The recommended anti-fraud strategy, which is designed based on the application of two pillars of fraud prevention and detection, can be used by management to minimize the possibility of fraud risk, minimize potential loss, and secure the company's assets from fraud.

Type of Paper: Case Study

Keywords: Fraud Risk Assessment; Fraud; Purchasing; SME; Internal Control.