bisnisrakyat.id - Fraud occurs due to several reasons and factors that influence it. To avoid these things, you should start to learn what factors can cause it and monitor every calculation process that can lead to fraud. Fraud is an intentional act by one or more individuals in management or those responsible for governance, employees, and third parties that involves the use of trickery to gain an unfair or unlawful advantage.

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It is true that accounting provides many benefits for companies and individuals themselves. However, if this accounting is used by irresponsible people, it will cause harm. Accounting can be used by companies to ask for money in the form of investment and debt. For example, a company that is still at a loss but is made to appear profitable, high debt is made to appear low, Sales that continue to decline but are made to appear to be increasing rapidly. If a bad business is made to appear good, investors will lose because the money they invest has the potential to be lost. Likewise with banks that provide loans, companies have the potential to not be able to pay their debts on time.

After knowing how dangerous fraud is in accounting, we also need to know what factors drive someone to commit fraud.

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1. Pressure

The occurrence of an urge that causes someone to commit fraud triggered by several reasons, starting from a person's urge to commit fraud triggered by economic, emotional, or value reasons.

2. Opportunity

When there is an opportunity, that's where the opportunity is carried out by the perpetrator of fraud. This factor is usually driven by weak internal control or abuse of authority in the company.

3. Rationalization

This factor occurs when someone rationalizes or seeks justification for the occurrence of fraud. This usually happens because the perpetrator maintains his identity as a trusted person, so he will seek justification for his actions.

4. Company

Management and owners who have a cunning nature and always justify all means so that their goals can be achieved. Companies like this have great potential to commit fraud in accounting.

5. Individual

Outlook on life and environment play a role in shaping a person's morals. The morals of greedy individuals are related to the views/thoughts and needs of employees or officials related to the assets owned by the company, agency, or organization where they work. In addition, the pressure faced at work can cause honest people to have the motive to commit fraud.

After knowing what factors can cause fraud, you also need to know how to minimize becoming a victim of accounting fraud. Here are things to consider if you want to avoid fraud.

1. Check the Managerial Ranks

Generally, several cases of fraud or embezzlement in financial reports often involve parties in the managerial ranks or decision makers. Therefore, the management ranks must be investigated properly to find out their purpose in committing fraud

2. Nature of the Organization

An organizational structure that is too complex makes it difficult for people to assess a company. In detecting fraud, you must properly understand the ins and outs of the company, including the owner of the company because he is the highest person who holds the decision.

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3. Internal Auditor

Internal auditors are carried out by personnel in the organization who have the competence to examine the company's accounting records and internal controls in the company. The purpose of internal auditors is to assist management in accountability by providing analysis, suggestions, and assessments of audited activities.

4. External Auditors

External auditors function to correct and analyze financial statements that have been audited by internal auditors. Unlike internal auditors carried out by personnel within the company, external auditors are carried out to ask for assistance from external parties in detecting fraud in the company.

5. Using Software

The use of software can minimize the occurrence of fraud. By using software, unauthorized parties cannot change and manipulate data in financial statements. In addition, the data presented by the software is more accurate and objective.