MITIGATING THE RISK OF EMBEZZLEMENT OF COMPANY CAPITAL BY AN EMPLOYEE : IMPLEMENTING FRAUD PREVENTION MEASURES TO PROTECT THE PROCUREMENT PROCESS FOR BUYING LAYING CHICKEN FEED AT DAZ FARM
Main Article Content
Arkananta Wirananda
This research investigates the financial and operational challenges faced by DAZ Farm, a small-scale laying hen farm in West Java, Indonesia, with a particular focus on fraud risk and its impact on business sustainability. The research identifies fraudulent activities committed by an employee, highlighting weaknesses in inventory management, financial oversight, and employee accountability. Using a descriptive qualitative methodology, the study applies the Fraud Triangle, Risk Matrix, and Business Process Flowchart as analytical tools to uncover systemic vulnerabilities and prioritize solutions. Data collection involves in-depth interviews with key stakeholders and analysis of operational and financial records. The findings reveal that key risk factors include a lack of internal monitoring systems, manual record-keeping, and insufficient employee ethics training. High-risk issues such as dual roles for employees and inadequate segregation of duties create opportunities for fraud. Recommendations include implementing automated inventory and financial tracking systems, enhancing employee training, and establishing whistleblowing mechanisms. This study provides actionable insights to mitigate fraud risk, ensuring the operational and financial integrity of small-scale agricultural businesses.
Evans, C, &, (2021). Fraud patterns and detection strategies in agricultural supply chains, International Journal of Agricultural Management.
Fisher, L, &, (2021), Effective fraud risk assessments for farm operations, Risk Management Journal.
Free, C, M, (2015), Management control and fraud: The fraud triangle and the new fraud diamond, Management Accounting Research, 26, 45-55,
Gonzalez, P, &, (2019), Building trust to prevent fraud in agricultural teams, Human Resources in Farming,
H, Brown, L, W, (2021), Policy frameworks for preventing fraud in agribusiness, Policy and Ethics in Agriculture,
Hery, S, (2015), Risk Management: Strategies for Organizational Success,
Hubbard, D, &, (2010), The limitations of risk matrices for complex risk measurement, Risk Analysis Journal,
Hubbard, D, W, (2010), Problems with scoring methods and ordinal scales in risk assessment, Risk Analysis, 975-988,
Liu, G, &, (2020), Leadership’s impact on fraud prevention in agriculture, Management Perspectives in Farming,
Mills, K, E, (2020), Graduate student literature review: Challenges and opportunities for human resource management on dairy farms, Journal of Dairy Science,
Mills, K, E, (2020), Graduate student literature review: Challenges and opportunities for human resource management on dairy farms, Journal of Dairy Science,
Munyaka, J, B, (2022), Inventory management concepts and implementations: A systematic review, Journal of Supply Chain Management,
Park, S, &, (2022), The role of ethical training in shaping employee behavior in agriculture, Training Insights for Farming,
Pritchard, C, L, (2015), Risk Management: Concepts and Guidance, CRC Press,
Puertas, R, &, (2019), Enhancing traceability and reducing fraud risks in agricultural operations, Journal of Agricultural Systems,
Saryanto, (2021), Risk Mitigation and Management in Modern Business, Journal of Business Studies,
Suprijatna, E, A, (2005), Ilmu Dasar Ternak Unggas Penebar Swadaya, Jakarta,
