Financial intelligence: Financial statement fraud in Indonesia.

Indonesia is currently in an honesty crisis, especially in financial governance, both in government and private institutions. Our study uses the concept of financial intelligence to identify and collect information related to financial affairs in an organization. We use the opinions of 76 auditors regarding various fraudulent attempts, both with fraudulent financial statements and other corrupt practices in organizations in Indonesia. Our important finding is that small companies are more likely to commit fraud due to weak supervisors than listed public companies. This is also more likely than family-owned companies and government level organizations. It was indicated by some respondents that local government level organizations with weak supervision are more likely to commit fraud than local governments with close supervision from urban communities. The results of the non-parametric relationship analysis show that although there is a possibility that the more experienced the auditor is, the more able they are to detect fraud and manipulation in the organization, the relationship is relatively weak. Other findings also show that auditors who have a CFE certificate find it easier to find fraud in the company. [ABSTRACT FROM AUTHOR]