Financial Statement Fraud Prevention Strategy: Fuzzy Analytical Hierarchy Process Method

Hersugondo, Sugeng Wahyudi, Imang Dapit Pamungkas


The purpose of this study is to examine the factors that cause financial statement fraud. This study uses the Fuzzy Analytical Hierarchy Process (AHP) and determines the appropriate model strategy for preventing financial statement fraud at State-owned enterprises (SOEs) in Indonesia. The mixed method is applied in this work as this research also uses the descriptive analysis method to analyze the phenomena that occur. The informants in this study were members of the Indonesian Supreme Audit Institution (BPK) and State Development Audit Agency (BPKP), academics, and financial managers of enterprises SOEs in Indonesia. This study formulated the following fraud prevention strategies in the context of SOEs fraud: (1) Practicing honest culture and high ethics, (2) improving supervision and control systems, (3) formulating anti-fraud values, (4) implementing a firm-wide reward and punishment system, (5) introducing anti-fraud socialization for employees, and (6) establishing change agents.



Keywords: financial statement fraud, fuzzy analytical hierarchy, fraud.


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