Page 180 - SUSTAINABILITY ISSUES & COVID-19

schemes, bribery, gratuities, extortion. According to the CPA guidelines for fraud and commercial crime prevention,
employees should not accept gifts, preferential treatment in any way that could influence or appear to influence
business decisions with a person or organization, thereby reducing their liability.

2. Asset Misappropriation
Asset misappropriation can be divided into theft of cash or company deposits, taking cash transactions and officially
reporting a lower revenue volume, theft through unauthorized expenses through some intermediary.

3. Financial Statement Fraud
Engineering corporate financial statements for personal gain.
Bribery is an example of fraud, so this study chooses the Fraud Triangle Theory approach to answer how business
barriers affect bribery. Initially this theoretical concept was used to understand financial crime. According to the
Fraud Triangle Theory, there are 3 elements in the occurrence of fraud, namely pressure / incentive (pressure),
opportunity (opportunity), and rationalization (rationalization).

2.2 Fraud Triangle Theory
The Fraud Triangle Theory is a relevant approach model in understanding actions, motivation, and prevention of
fraud. This theory was developed by W. Steve Albrecht. The discussion of this theory cannot be separated from the
criminologists Edwin H. Sutherland and Donald Cressey. Indirectly, they contribute to the introduction of the concept
of rationalization and opportunity as one of the elements of the Fraud Triangle Theory. Criminal behavior is the result of
learning from individual interactions through verbal and examples which contain techniques, motives, encouragement
and rationalization of crime (Albrecht, 2014). Cressey went deeper into fraud research, namely significantly conducting
interviews with perpetrators of embezzlement. The results of his research identified three elements in the process
of violating financial trust, namely financial problems that cannot be shared, opportunities for violations, and
rationalization of appropriate actions in certain situations (Albrecht, 2014; Homer, 2019; Schuchter & Levi, 2016).

Subsequent studies have tried to develop the Fraud Triangle Theory to make it relevant to developing problems (Homer,
2019). Schuchter & Levi (2016) add capability as a sub-element of opportunity, while other studies see the capability
element as an independent element. In this study agrees with Schuchter, the opportunity for committing fraud can be
felt by the perpetrator if he has the ability to take advantage of opportunities and feels he has the ability to rationalize
his actions. The perpetrator has the ability in the form of control to select like-minded employees. The perpetrator has
the ability to understand the company’s business systems and procedures.

Figure 1 Fraud Triangle
Source :(Albrecht, 2014)

International Conference on Sustainability 179
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