PERANAN GOOD CORPORATE GOVERNANCE DALAM PENCEGAHAN FRAUD

Abstract

Corruption, misappropriation of assets and fraudulent statements are types of fraud
that adversely affect the performance of the company/organization. Various types of
fraud are common in the private sector or other government organizations.
Empirically research showed that fraud occurred due to weak implementation of
Corporate Governance. It is important for all stakeholders, especially the
management company to comprehensively understand the consep of fraud, includes
knowing why a person committing or engaging in fraudulent activity and all of the red
flags. Implementation of internal and external mechanism of Corporate Governace
mechanism by considering all of its principles and functions also audit committee
function, predicted to be able to reduce the occurrence of fraud.

Keywords: Fraud, corporate governance principles, corporate governance functions
and audit committee.