Factors Affecting Disclosure of Fraud in Islamic Commercial Banks in Indonesia 2014-2018
DOI:
https://doi.org/10.7187/GJATSI2020-2Keywords:
Islamic commercial banks, Fraud, Good corporate governance, Effective monitoring, Whistleblowing systemAbstract
Acts of fraud that occurred in several Islamic banks for sometimes are a proof that there is no guarantee of any institution that can be free from fraud cases. As an effort to reduce the level of fraud that occurs in Islamic banks, it is necessary to implement good corporate governance, good supervision, and implementation of an anti-fraud system that can be realized through the application of a whistleblowing system. This study aims to analyze the factors that influence fraud disclosure at Islamic Commercial Banks in Indonesia in 2014-2018. The objects of this research are seven Islamic Commercial Banks (BUS) registered with the Financial Services Authority (OJK) from the 2014-2018 period. The independent variables used in this study are Good Corporate Governance, whistleblowing system, and effective monitoring as measured by the ratio between the number of Independent Commissioners and the total number of Commissioners. The analysis method used in this research is panel data regression. The results of this study indicate that the independent variable application of the whistleblowing system and the value of Good Corporate Governance self-assessment has a positive effect on the disclosure of fraud in Islamic Commercial Banks, while the independent variable ineffective monitoring does not affect on the disclosure of fraud. This study has various limitations, one of which is limited data since it only focuses on Islamic commercial banks. The suggestions from this study are Islamic banks in Indonesia need to implement a whistleblowing system as an effort to prevent fraud, this is evidenced by the whistleblowing system variable influencing the disclosure of fraud in Islamic banks and it must improve the implementation of corporate governance to make it better. It can be seen from the composite value of the self-assessment results of the GCG BUS implementation. There are still many composite scores of 3 (quite good), even though the GCG variable has a positive and significant effect on fraud disclosure.
References
Anugerah, R. (2014). Peranan Good Corporate Governance Dalam Pencegahan Fraud. Jurnal Akuntansi, 3(1), 101–113.
Bierstaker, J. L., Brody R. G., Pacini C. (2006). Accountants’ Perceptions Regarding Fraud Detection and Prevention Methods. Managerial Auditing Journal, 21(5), 520-535.
Center For Audit Quality. (2010) Deterring and Detecting Financial Reporting Fraud: A Platform for Action, Washington, D.C.
Djumena E. (2014). Bank Mega Syariah Terseret Kasus Investasi Emas. Kompas [Internet]. Accessed January 5, 2020.
Falikhatun, A., Y. (2012. Bank Syariah Di Indonesia: Ketaatan Pada Prinsip-Prinsip Syariah Dan Kesehatan Finansial. Conference in Business, Accounting and Management-Fe Unissula, 1(1), (Desember), 245–254.
Lestari, I., Gunawan H. & Purnamasari P. (2016). Pengaruh Peran Audit Internal Dan Efektivitas Whistleblowing System Terhadap Pencegahan Fraud (Survei Pada Bank Umum Syariah Di Kota Bandung, Jawa Barat). Proceding Akuntansi, 2(1), 205-212.
Manurung, D. T. H., & Hardika A. L., (2015). Analysis of Factors That Influence Financial Statement Fraud in The Perspective Fraud Diamond: Empirical Study on Banking Companies Listed On The Indonesia Stock Exchange Year 2012 To 2014. Proceedings of The International Conference on Accounting Studies (ICAS), 279-286
Najib H & Rini. (2019) . Sharia Compliance, Islamic Corporate Governance Dan Fraud Pada Bank Syariah. Jurnal Akuntansi Dan Keuangan Islam, 4(2), 131–146.
Nugraheni N. K. & Triatmoko H. (2017). Analisis Faktor-Faktor Yang Memengaruhi Terjadinya Financial Statement Fraud: Perspektif Diaomd Fraud Theory (Studi Pada Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2014-2016). Jurnal Akuntansi Dan Auditing, 14(2), 118-143.
Otoritas Jasa Keuangan. (2019). Indonesian Banking Statistic. https://www.Ojk.Go.Id/. Accessed December 13, 2019
Rahman R. A. & Anwar I. S. K., (2014). Effectiveness of Fraud Prevention and Detection Techniques in Malaysian Islamic Banks. Procedia - Social and Behavioral Sciences, 145, 97 – 102.
Rini. (2014). The Effect of Audit Committee Role and Sharia Supervisory Board Role on Financial Reporting Quality at Islamic Banks in Indonesia. Journal of Economics, Business, And Accountancy, 17(1), 145.
Sula A. E., Alim M. N. & Prasetyono. (2014). Pengawasan, Strategi Anti Fraud Dan Audit Kepatuhan Syariah Sebagai Upaya Fraud Preventive Pada Lembaga Keuangan Syariah. Jaffa Oktober, 2(2), 91–100.
GJAT provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
