Implementation of Fraud Risk Assessment on Domestic Revenue Cycle of PT X (Case Study of Tiles Company)

摘要

This study discusses design and implementation process of fraud risk assessment on domestic revenue cycle of PT X, applying COSO framework; Fraud Risk Management Guide 2017. This study uses qualitative approach with case study method. Interview, observation, survey, and documentation are used to collect the data. Content analysis method is used to analyze primary and secondary data. This study observes PT X as single unit analysis. PT X is a leading tiles company which has been operating for 28 years in Indonesia. In 2017 PT X just began a whistleblowing mechanism and in last six months the reports were related to fraud in goods delivery process. The purposes of this study are to implement fraud risk assessment on domestic revenue cycle, to design anti-fraud strategies for management of PT X, and to create audit program to test effectiveness of control related to the identified fraud risks. The main risky area on domestic revenue cycle of PT X are Sales Administration, Warehouse, and Finance Accounts Receivable. The identified risks on domestic revenue cycle are mostly corruption and assets misappropriation. Most identified risks fell on high risk area.