Fraud awareness survey of private sector in Indonesia

Purpose - – The purpose this study is to investigate the level of fraud awareness of the private sector in Indonesia, as well as steps that have been taken by corporations to detect or prevent fraud. Design/methodology/approach - – This paper presents a descriptive survey. In total, 67 respondents returned the questionnaires, which can be considered suitable for a descriptive survey. Some descriptive (included percentages, means) and inferential statistics (mean differences test) are used to summarize and analyze the questionnaire results. Findings - – It was found that majority of respondents agree that fraud is a major concern for businesses in Indonesia and that corporations have enough level of fraud awareness. Poor internal control and lack of ethical values are ranked as the most likely reasons why entities are being threatened by fraud, and a sound ethical policy and code of conduct is perceived as the most important fraud risk management process. Corporations have implemented several tools to detect or prevent fraud, such as internal audit and internal control. They also have a system in place for anonymous reporting of suspicions of fraud, corruption or misconduct. Originality/value - – Private sector fraud awareness in emerging countries, especially in Indonesia, is still rarely examined in extant literature.