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Red Flags And Fraud Prevention On Rural Banks

Author

Listed:
  • Ni Wayan Rustiarini

    (Mahasaraswati Denpasar University)

  • Ni Nyoman Ayu Suryandari

    (Mahasaraswati Denpasar University)

  • I Kadek Satria Nova

    (Mahasaraswati Denpasar University)

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.

Suggested Citation

  • Ni Wayan Rustiarini & Ni Nyoman Ayu Suryandari & I Kadek Satria Nova, 2016. "Red Flags And Fraud Prevention On Rural Banks," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 19(2), pages 1-30, October.
    • Handle: RePEc:idn:journl:v:19:y:2016:i:2c:p:1-30
    DOI: https://doi.org/10.21098/bemp.v19i2.629
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    More about this item

    Keywords

    financial risk; liquidation; corporate governance; audit;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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