Audit Based Risk Management Toward Anti Corruption

Abstract

Corruption is a form of fraud that can harm other parties. In Indonesia corruption means that it is a criminal offense related to state finance in the government sector and involves public officials. So to reduce the potential for corruption, prevention efforts are needed. The purpose of this study is to analyze how risk management prevents corruption. This research uses a qualitative case study method. The object of research was carried out at the Banyuwangi Regency Government. The reason for choosing this object is because the Banyuwangi Regency Government has implemented a risk-based audit. This study focuses on selecting three work units, namely the Inspectorate, the Financial Management Agency and the Asset Management, and the Public Works Agency. The results showed that the identification of corruption risks can be classified based on the red flag, namely (1) the accuracy of the goods and services received at the time of procurement, (2) identification of indications of corruption. The implication of this research is to know the risk of corruption, we can minimize corruption by controlling both operational and strategy control.