Law enforcement and auditors' roles, responses, and complicated relationships in accounting fraud?
Authors
-
Darti Djuharni
Sekolah Tinggi Ilmu Ekonomi Malangkucecwara Malang, Indonesia
https://orcid.org/0000-0003-3778-573X
-
Nursaid Nursaid
Universitas Muhammadiyah Jember, Indonesia
https://orcid.org/0000-0002-5396-9953
-
Sonhaji Sonhaji
Sekolah Tinggi Ilmu Ekonomi Malangkucecwara Malang, Indonesia
https://orcid.org/0009-0000-2073-7198
DOI:
https://doi.org/10.61650/rjme.v1i2.469Keywords:
Accounting fraud, Auditors, Complicated relationships, Enforcement, ResponsesAbstract
Accounting fraud is a form of financial report manipulation that has a serious impact on various economic and social aspects. Apart from being financially detrimental, this fraud also affects employees, industry, and society. This research aims to understand the role of auditors and law enforcement in preventing and handling accounting fraud, with a focus on the complex relationship between these two parties. Using a mixed methods research synthesis, we analyzed journal articles from 2014 to 2024 that covered this topic. Data was collected from various sources such as SINTA, Semantic Scholar, and Google Scholar. The research results show that there are differences in terminology and concepts of fraud among existing studies, as well as fraud analyses that are often superficial. We suggest the need for more in-depth case studies of the interactions between law enforcement and auditors. These findings underscore the importance of collaboration between academics, politicians, and practitioners to reduce the economic and social impact of accounting fraud.
Downloads
References
Abustan, A., Suaidi, A., Haanurat, A. I., Wulandari, A. P., Sukamto, B., Bulkani, B., & ... (2021). Society 5.0: Leading in The Borderless World. CV. Bildung Nusantara, 1, 253–272.
Ali, H., Khan, E., & Ilahi, I. (2019). Environmental chemistry and ecotoxicology of hazardous heavy metals: environmental persistence, toxicity, and bioaccumulation. Journal of Chemistry. https://www.hindawi.com/journals/jchem/2019/6730305/abs/
Arl, M. (2019). Tattoo inks: Characterization and in vivo and in vitro toxicological evaluation. Journal of Hazardous Materials, 364, 548–561. https://doi.org/10.1016/j.jhazmat.2018.10.072
Awad, K. R., Abbas, S. H., & Obed, M. K. (2023). Analysis of the relationship between some indicators of sustainable development and economic growth in Iraq for the period (2004-2020). Revenue Journal: Management and Entrepreneurship, 1, 15–21.
Bartov, E. (2021). Corporate social responsibility and the market reaction to negative events: Evidence from inadvertent and fraudulent restatement announcements. Accounting Review, 96(2), 81–106. https://doi.org/10.2308/TAR-2018-0281
Bernhoft, R. A. (2013). Cadmium toxicity and treatment. The Scientific World Journal. https://www.hindawi.com/journals/tswj/2013/394652/abs/
Brüggemann, R. (1995). Applying Hasse diagram technique for the evaluation of toxicological fish tests. Chemosphere, 30(9), 1767–1780. https://doi.org/10.1016/0045-6535(95)00061-C
Cahyani, T. D. C., & Wardoyo, Y. P. (2022). Efforts of apparatus law enforcement in realizing restorative justice in asset recovery results of corruption. AMCA Journal of Community Development, 1, 15–21.
Canistro, D. (2017). E-cigarettes induce toxicological effects that can raise the cancer risk. Scientific Reports, 7(1). https://doi.org/10.1038/s41598-017-02317-8
Carpenter, T. D. (2011). The incremental benefits of a forensic accounting course on skepticism and fraud-related judgments. Issues in Accounting Education, 26(1), 1–21. https://doi.org/10.2308/iace.2011.26.1.1
Cooper, D. J. (2013). Fraud in accounting, organizations and society: Extending the boundaries of research. Accounting, Organizations and Society, 38(6), 440–457. https://doi.org/10.1016/j.aos.2013.11.001
Darmayanti, R., Milshteyn, Y., & Kashap, A. M. (2023). Green economy, sustainability and implementation before, during, and after the covid-19 pandemic in Indonesia. Revenue Journal: Management and Entrepreneurship, 1(1), 27–33.
Darsono, S., Yuwono, N., & Nalarsih, R. T. (2019). Wave transmission through curtainwall pile breakwater (CPB). Int. J. Civ. Eng. Technol., 10, 389–398.
Dartanto, T. (2022). Natural disasters, mitigation and household welfare in Indonesia: Evidence from a large-scale longitudinal survey. Cogent Economics and Finance, 10(1). https://doi.org/10.1080/23322039.2022.2037250
deHaan, E. (2015). The revolving door and the SEC’s enforcement outcomes: Initial evidence from civil litigation. Journal of Accounting and Economics, 60(2), 65–96. https://doi.org/10.1016/j.jacceco.2015.07.010
Demas, R. (2020). Viral: The Impact of Investigative Journalism and Social Media on Anticorruption Enforcement and Investor-State Relations in Emerging Markets. U. St. Thomas LJ. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/usthomlj17§ion=19
Djuharni, D. (2017). To interpret the values of Bundo Kanduang in the Internal Control System. The International Journal of Accounting and Business Society, 25(1), 109–118.
Djuharni, D., & Dewi, S. (2021). Fenomena Transaksi Bisnis Online Di Era 4.0. Jurnal Akuntansi Kontemporer, 13(1), 27–38.
Dullah, M., Limgiani, L., & Suwardi, L. A. (2024). Work environment analysis to improve employee performance. Revenue Journal: Management and Entrepreneurship, 2.
Elaksmi, L. R., & Djuharni, D. (2019). Analisis budget kas dalam meningkatkan likuiditas dan profitabilitas perusahaan. Akuntansi Bisnis &Manajemen (ABM), 26(2), 122–140.
Enarson, E. (2018). Gender and Disaster: Foundations and New Directions for Research and Practice. Handbooks of Sociology and Social Research, 205–223. https://doi.org/10.1007/978-3-319-63254-4_11
Erickson, M. (2006). Is there a link between executive equity incentives and accounting fraud? Journal of Accounting Research, 44(1), 113–143. https://doi.org/10.1111/j.1475-679X.2006.00194.x
Firth, M. (2005a). Financial statement frauds and auditor sanctions: An analysis of enforcement actions in China. Journal of Business Ethics, 62(4), 367–381. https://doi.org/10.1007/s10551-005-0542-4
Firth, M. (2005b). Financial statement frauds and auditor sanctions: An analysis of enforcement actions in China. Journal of Business Ethics, 62(4), 367–381. https://doi.org/10.1007/s10551-005-0542-4
Haanurat, A. I., Vedianty, A. S. A., & Tollentino, S. A. (2024). Instagram’s impact on sharia economic law literacy in the digital age and Indonesia’s sharia economy strengthening. Revenue Journal: Management and Entrepreneurship, 2.
Hendarto, T., Nursaid, N., & Nadaroglu, H. (2024). Retail Companies: The Impact of Brand Image, Advertising, Promotional, and Capital Spending on Financial Performance. Revenue Journal: Management and Entrepreneurship, 1(2).
Hendarto, T., Safitri, N. D., & Dhakal, A. (2023). Does TQM affect Indonesian food sector production efficiently? Revenue Journal: Management and Entrepreneurship, 1.
Jiambalvo, J. (1996). Discussion of “causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC.” Contemporary Accounting Research, 13(1), 37–47. https://doi.org/10.1111/j.1911-3846.1996.tb00490.x
Jothr, O. A., & Jummaa, A. I. (2023). The impact of monetary policy instruments on sustainable development. Revenue Journal: Management and Entrepreneurship, 1, 22–26.
Junrida, S., & Djuharni, D. (2023). The Effect of Corporate Governance, Sales Growth, and Capital Intensity on Tax Avoidance. Journal of Business and Management Studies, 5(6), 71–78.
Khalaf, A. Z., & Hamad, S. Ben. (2023a). An exploratory and analytical study of a sample of control and audit professionals’ opinions on green audit techniques and methods. Revenue Journal: Management and Entrepreneurship, 1, 1–4.
Khalaf, A. Z., & Hamad, S. Ben. (2023b). An exploratory and analytical study of a sample of control and audit professionals’ opinions on green audit techniques and methods. Revenue Journal: Management and Entrepreneurship, 1, 1–4.
Kong, D. (2019). Politically connected independent directors and corporate fraud in China. Accounting and Finance, 58(5), 1347–1383. https://doi.org/10.1111/acfi.12449
Lennox, C. (2013). Tax Aggressiveness and Accounting Fraud. Journal of Accounting Research, 51(4), 739–778. https://doi.org/10.1111/joar.12002
Liao, J. (2019). Female CFOs and accounting fraud: Evidence from China. Pacific Basin Finance Journal, 53, 449–463. https://doi.org/10.1016/j.pacfin.2019.01.003
Lili, X. (2018). On civil engineering disasters and their mitigation. Earthquake Engineering and Engineering Vibration, 17(1), 1–10. https://doi.org/10.1007/s11803-018-0420-6
Lisic, L. L. (2015). Accounting fraud, auditing, and the role of government sanctions in China. Journal of Business Research, 68(6), 1186–1195. https://doi.org/10.1016/j.jbusres.2014.11.013
Lokanan, M. E. (2015a). Challenges to the fraud triangle: Questions on its usefulness. Accounting Forum, 39(3), 201–224. https://doi.org/10.1016/j.accfor.2015.05.002
Lokanan, M. E. (2015b). Challenges to the fraud triangle: Questions on its usefulness. Accounting Forum, 39(3), 201–224. https://doi.org/10.1016/j.accfor.2015.05.002
Lu, H. (2020). The impacts of abnormal weather and natural disasters on transport and strategies for enhancing ability for disaster prevention and mitigation. Transport Policy, 98, 2–9. https://doi.org/10.1016/j.tranpol.2019.10.006
Mauludin, H., & Djuharni, D. (2015). The Potential of Higher Education Competitiveness in Perspective Good Corporate Governance in Indonesia. International Journal of Management and Administrative Sciences, 2(6), 1–9.
Moyers, T. B., & Miller, W. R. (2013). Is low therapist empathy toxic? Psychology of Addictive Behaviors. https://psycnet.apa.org/record/2012-26455-001
Muslimin, J. (2015). Shari’a, indigenous wisdom and human rights: A brief review of human rights enforcement in the context of Indonesian history. Journal of Indonesian Islam, 9(2), 123–150. https://doi.org/10.15642/JIIS.2015.9.2.123-150
Nalarsih, R. T., Yuwono, N., & Darsono, S. (2019). Innovation Design Roughness on Slope to Reduce Storms at Curved Seawall in Canggu Beach Bali. International Journal of Innovative Technology and Exploring Engineering ….
Nigrini, M. J. (2012). Benford’s law: Applications for forensic accounting, auditing, and fraud detection. Benford’s Law: Applications for Forensic Accounting, Auditing, and Fraud Detection, 1–330. https://doi.org/10.1002/9781119203094
Noviana, E. (2020). Identification of Knowledge Mitigation of Forest and Land Fire Disasters; A Preliminary Study for Management of Disaster Learning in Elementary School. Journal of Physics: Conference Series, 1655(1). https://doi.org/10.1088/1742-6596/1655/1/012097
Nugraha, F. S., & Djuharni, D. (2019). Influence of Information Quality and System Quality on the Use of Edmodo. JICTE (Journal of Information and Computer Technology Education), 3(2).
Nursaid, N., Smith, Z., & Dhakal, A. (2023). Development of Islamic economics and practices in Indonesia (2013-2023): opportunities and challenges. Revenue Journal: Management and Entrepreneurship, 1(1).
Nursaid, N., Zamil, R., & Labh, A. (2024). Sustainable and just economy: One Islamic boarding school, one product program for economic empowerment. Revenue Journal: Management and Entrepreneurship, 1(2).
Orimoloye, I. R. (2021). Spatial assessment of drought disasters, vulnerability, severity and water shortages: a potential drought disaster mitigation strategy. Natural Hazards, 105(3), 2735–2754. https://doi.org/10.1007/s11069-020-04421-x
Patil, S. V. (2019). “The Public Doesn’t Understand”: The Self-reinforcing Interplay of Image Discrepancies and Political Ideologies in Law Enforcement. Administrative Science Quarterly, 64(3), 737–769. https://doi.org/10.1177/0001839218783988
Reffett, A. (2010a). Can identifying and investigating fraud risks increase auditors’ liability? Accounting Review, 85(6), 2145–2167. https://doi.org/10.2308/accr.2010.85.6.2145
Reffett, A. (2010b). Can identifying and investigating fraud risks increase auditors’ liability? Accounting Review, 85(6), 2145–2167. https://doi.org/10.2308/accr.2010.85.6.2145
Rezaee, Z. (2005a). Causes, consequences, and deterence of financial statement fraud. Critical Perspectives on Accounting, 16(3), 277–298. https://doi.org/10.1016/S1045-2354(03)00072-8
Rezaee, Z. (2005b). Causes, consequences, and deterence of financial statement fraud. Critical Perspectives on Accounting, 16(3), 277–298. https://doi.org/10.1016/S1045-2354(03)00072-8
Rogosnitzky, M., & Branch, S. (2016). Gadolinium-based contrast agent toxicity: a review of known and proposed mechanisms. Biometals. https://doi.org/10.1007/s10534-016-9931-7
Rossignol, D. A. (2014). Environmental toxicants and autism spectrum disorders: A systematic review. Translational Psychiatry, 4(2). https://doi.org/10.1038/tp.2014.4
Russom, C. L. (1997a). Predicting modes of toxic action from chemical structure: Acute toxicity in the fathead minnow (Pimephales Promelas). Environmental Toxicology and Chemistry, 16(5), 948–967. https://doi.org/10.1002/etc.5620160514
Russom, C. L. (1997b). Predicting modes of toxic action from chemical structure: Acute toxicity in the fathead minnow (Pimephales Promelas). Environmental Toxicology and Chemistry, 16(5), 948–967. https://doi.org/10.1002/etc.5620160514
Saporito, A. (2019). Law enforcement to raise a constitutional legitimate of the Guaranteeing Authority Competition and Market: problematic profiles. Archivio Giuridico Filippo Serafini, 151(3), 643–668.
Singh, Z. (2020). Disasters: Implications, mitigation, and preparedness. Indian Journal of Public Health, 64(1), 1–3. https://doi.org/10.4103/ijph.IJPH_40_20
Sudiantini, D., Rizky, P. P., & Hazarika, A. (2023). Digital economy and financial inclusion in reviving the national economy: A Management Strategy. Revenue Journal: Management and Entrepreneurship, 1.
Sungkawati, E., Novitasari, D. R., & Hamad, S. Ben. (2024). Viral Marketing: Mixue the King of Snow Ice Cream—How does this franchise affect the market? Revenue Journal: Management and Entrepreneurship, 2.
Sungkawati, E., Usmiyatun, U., & Karim, S. (2023). “ Improving” food processing skills by creating new entrepreneurs. Revenue Journal: Management and Entrepreneurship, 1.
Suryono, J., Wijaya, M., Irianto, H., & Harisudin, M. (2020). Mind-set empowerment through enforcement of oriented visions, values, and measurable goals for young entrepreneurs. Talent Development and Excellence, 12(1), 1396–1406.
Wang, S. (2010). A comprehensive survey of data mining-based accounting-fraud detection research. 2010 International Conference on Intelligent Computation Technology and Automation, ICICTA 2010, 1, 50–53. https://doi.org/10.1109/ICICTA.2010.831
Weske, U. (2018). Using regulatory enforcement theory to explain compliance with quality and patient safety regulations: The case of internal audits. BMC Health Services Research, 18(1). https://doi.org/10.1186/s12913-018-2865-8
Yuniwati, E. D., Novitasari, D. R., & Kamran, A. (2023). Alternative waste management: composting and biochar conversion for metal remediation. Revenue Journal: Management and Entrepreneurship, 1, 34–43.
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Darti Djuharni, Nursaid Nursaid, Sonhaji Sonhaji
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
