ABSTRACT

This study aims to determine the fraud risk factors perceived by employees to have the greatest influence to commit fraud and gathering their opinions on the fraud prevention. Fraud risk factors in this study is based on the concept of fraud triangle developed by Donald Cressey, as well as examples of situations written in SAS No. 99. Samples of this study are employees of companies selected using the convenience sampling method. Results from survey to 109 employees showed that all three factors have no significance in affecting employees to commit fraud; however, if compared between factors, the pressure is considered to have the highest impact among other factors. Related to fraud prevention, employee assumes that all prevention tool are very important to be implemented, especially the adequate segregation of duties

Type of Paper: Empirical

Keywords: Fraud, fraud risk factors, fraud triangle