Integrating Fraud Deterrence Propeller and Continuous Auditing for Enhanced Fraud Detection and Sustainability
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Abstract
This study examines the implementation of the Fraud Deterrence Propeller (FDP) web-based application and continuous auditing (CA) in strengthening fraud detection and deterrence at PT. Kembang Christapharma & Group. Fraud remains a critical risk in Indonesia, leading to significant financial and reputational losses. Using an experimental design, this research integrates the FDP framework with the Beneish-M Score to assess financial reporting anomalies. Quantitative results show a strong correlation between the maturity of fraud deterrence and the effectiveness of fraud detection. Regression analysis confirms that both fraud deterrence maturity and CA significantly predict fraud detection outcomes. The analysis of financial reports indicates that the Beneish-M Score primarily detects earnings management, which, while not always fraud, signals irregularities that require audit follow-up. Qualitative findings highlight improved fraud awareness, stronger internal controls, and enhanced real-time monitoring. This study contributes to the literature by combining FDP and CA into a single framework, offering practical tools for fraud deterrence and sustainable development.
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References
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