FRAUD INVESTIGATION ON FINANCIAL STATEMENT FRAUD FACTORS AND COMPARISON OF FRAUD TRIANGLE AND FRAUD ELEMENTS TRIANGLE ANALYSIS

Abstract

This study has the purpose to acknowledge the comparation of fraud triangle and fraud element triangle in two different companies and identify the fraud investigator’s steps in respective companies in finding the fraud. The object of this study was the case of Olympus Corporation and Satyam Ltd. This study was conducted using qualitative method of research with content analysis technique in order to get precise and comprehensive results from various data sources. Data analysis technique was used throughout the document study. Cressey’s fraud triangle theory and fraud element triangle theory were used to identify the causal factors of the fraud and how the perpetrator did the fraud, concealing, and utilizing the cash used from the fraud. The result of this study was there were major differences in causal factors and the way Olympus Corporation and Satyam Ltd did the fraud in the case study. The researcher analyzed fraud investigator’s steps to establishing predication, finding evidence, and analyzing the evidence from each company’s fraud investigator. Last, the researcher presented recommendation for both companies to prevent other companies to repeat the case, and both fraud investigators in order to improve further investigations.