Investigative Audit Analysis in Uncovering Financial Fraud: A Literature Review Based on the Fraud Tree Approach

Abstract

This research aims to analyze the role of investigative audits in detecting and uncovering financial fraud using the Fraud Tree approach developed by the Association of Certified Fraud Examiners (ACFE). This research uses a qualitative method with a literature review approach, which involves examining previous research findings, publications, and relevant audit institution reports. The study results indicate that investigative audits play a strategic role in uncovering evidence of fraud, particularly within the three main categories of the Fraud Tree: corruption, asset misappropriation, and financial statement fraud. Effective implementation of investigative audits requires competent auditors, support from digital audit technology, and a transparent reporting system. This article also recommends strengthening auditor capacity and implementing risk-based internal control systems as preventive measures against fraud in both the public and private sectors.