Leveraging Digital Fraud Deterrence and Continuous Auditing: Evidence from an Indonesian Pharmaceutical Company

Authors: Koenta Adji Koerniawan orcid logo (Telkom University, Indonesia) , Arfive Gandhi orcid logo (Telkom University, Indonesia) , Dwi Fitrizal Salim orcid logo (Telkom University, Indonesia) , Deannes Isynuwardhana orcid logo (Telkom University, Indonesia) , Dudi Pratomo orcid logo (Telkom University, Indonesia) , Galuh Tresna Murti orcid logo (Telkom University, Indonesia)

  • Leveraging Digital Fraud Deterrence and Continuous Auditing: Evidence from an Indonesian Pharmaceutical Company

    Leveraging Digital Fraud Deterrence and Continuous Auditing: Evidence from an Indonesian Pharmaceutical Company

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Abstract

This study investigates the integration of the Fraud Deterrence Propeller (FDP) web-based application and continuous auditing (CA) mechanisms in strengthening fraud governance, audit quality, and sustainable corporate governance within an Indonesian pharmaceutical company. Fraud remains a pervasive threat in emerging markets, where institutional fragility and cultural factors, such as high power distance, often impede oversight. Adopting a mixed-methods experimental design, the study evaluates the effectiveness of the FDP-CA framework using the Beneish-M Score and stakeholder perspectives. Quantitative findings reveal a statistically significant relationship between fraud deterrence maturity and the organisation’s capability to identify and respond to fraud risks, while CA implementation demonstrably improves audit responsiveness and audit quality. Qualitative insights underscore improvements in transparency, user acceptance, and alignment with ESG objectives. The discussion incorporates recent scholarship on auditor role conflict, audit firm tenure, forensic accounting, and institutional barriers, offering a broader contextual understanding. This research introduces a dual-engine fraud governance model that contributes not only to proactive fraud detection but also to the development of ethically resilient, technologically adaptive, and governance-oriented organisations. The findings provide actionable implications for regulators, auditors, and enterprise risk managers seeking to deploy digital deterrence, continuous assurance, and real-time audit systems.

Keywords: Fraud Deterrence Propeller, Continuous Auditing, Fraud Governance, Audit Quality, Beneish-M Score

How to Cite:

Koerniawan, K. A., Gandhi, A., Salim, D. F., Isynuwardhana, D., Pratomo, D. & Murti, G. T., (2026) “Leveraging Digital Fraud Deterrence and Continuous Auditing: Evidence from an Indonesian Pharmaceutical Company”, Australasian Accounting, Business and Finance Journal 20(2): 2, 4–20. doi: https://doi.org/10.14453/aabfj.v20i2.02

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Published on
2026-07-16

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CC BY-NC-SA 4.0