Fraud Hexagon Theory” Evaluation Framework In Procurement: A Systematic Literature Review

https://doi.org/10.35912/gaar.v3i2.4624
Published: May 15, 2025

Abstract:

Purpose: This community service initiative aims to empower residents of Takerharjo Village by introducing sustainable agricultural practices and providing health education. The goal is to improve local welfare, enhance food security, and promote community health through innovative and practical solutions.

Methodology/approach: The program was conducted in Takerharjo Village, involving 50 farmers and 30 households. Sustainable agricultural tools, such as organic fertilizers, drip irrigation systems, and pest control traps, have been introduced. Health education sessions were conducted using interactive methods, including workshops and demonstrations. Surveys and interviews were conducted to assess the community's needs and to evaluate the impact of the program.

Results/findings: The initiative successfully increased agricultural productivity by 25% by adopting sustainable practices. Health education has improved community awareness of hygiene and nutrition, leading to healthier lifestyles. Participants reported higher satisfaction with, and confidence in, managing their farms and health.

Conclusions: The community service initiative in Takerharjo Village demonstrated that the integration of sustainable agricultural practices and health education can significantly enhance local welfare. The adoption of organic fertilizers, drip irrigation, and pest control measures has led to a measurable increase in agricultural productivity, whereas health education has fostered better hygiene and nutritional habits among residents..

Limitations: The study was limited by the short duration of the program and the small sample size, which may affect the generalizability of the results.

Contribution: This study contributes to community development, sustainable agriculture, and public health. This provides a model for other rural communities to adopt similar practices, fostering local progress and well-being.

Keywords:
1. Fraud Hexagon
2. Procurement
Authors:
Sofia Dewi
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How to Cite
Dewi, S. (2025). Fraud Hexagon Theory” Evaluation Framework In Procurement: A Systematic Literature Review. Goodwood Akuntansi Dan Auditing Reviu, 3(2), 73–85. https://doi.org/10.35912/gaar.v3i2.4624
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Vol. 3 No. 2 (2025): Mei
Articles
References

    Agbo, Emmanuel, & Egbunike, Chinedu. (2024). CEO Political Connection, Shareholding and Financial Distress of Deposit Money Banks in Nigeria. International Journal of Financial, Accounting, and Management, 6(1), 135-149.

    Akaba, Temofe Isaac, Norta, Alex, Udokwu, Chibuzor, & Draheim, Dirk. (2020). A framework for the adoption of blockchain-based e-procurement systems in the public sector: A case study of Nigeria. Paper presented at the Responsible Design, Implementation and Use of Information and Communication Technology: 19th IFIP WG 6.11 Conference on e-Business, e-Services, and e-Society, I3E 2020, Skukuza, South Africa, April 6–8, 2020, Proceedings, Part I 19. doi: https://doi.org/10.1007/978-3-030-44999-5_1

    Akushie, Erasmus Nii Amoo, & Yornu, Isaac Kofi. (2024). Procurement Ethics and Stakeholders' Satisfaction, the Moderating Role of Organizational Culture. Dama International Journal of Researchers, 9. doi:10.15373/22501991/VOL9/ISS5/FEB002

    Alsamarraie, Mundher M, & Ghazali, Farid E Mohamed. (2023). Barriers and Challenges for Public Procurement Integrity in Iraq: Systematic Review Study. KSCE Journal of Civil Engineering, 27(9), 3633-3645. https://doi.org/10.1007/s12205-023-1196-4

    Bosio, Erica, Hayman, Gavin, & Dubosse, Nancy. (2023). The investment case for e-government procurement: A cost–benefit analysis. Journal of Benefit-Cost Analysis, 14(S1), 81-107. https://doi.org/10.1017/bca.2023.10

    Chen, Shun-Hsing, Chen, Yang-Ju, & Leung, Wing-Ching. (2023). Analyzing differences in customer satisfaction on the video streaming platform Netflix. Annals of Management and Organization Research, 4(3), 193-209.

    Darusalam, Darusalam, Janssen, Marijn, Sohag, Kazi, Omar, Normah, & Said, Jamaliah. (2021). The influence of ICT on the control of corruption: a study using panel data from ASEAN countries. International Journal of Public Administration in the Digital Age (IJPADA), 8(1), 1-16. https://doi.org/10.4018/IJPADA.20210101.oa2

    Gallego, Jorge, Rivero, Gonzalo, & Martínez, Juan. (2021). Preventing rather than punishing: An early warning model of malfeasance in public procurement. International Journal of Forecasting, 37(1), 360-377. https://doi.org/10.1016/j.ijforecast.2020.06.006

    Graycar, Adam. (2019). Mapping corruption in procurement. Journal of Financial Crime, 26(1), 162-178. https://doi.org/10.1108/JFC-06-2018-0063

    Kang, Sungwon, Kim, Daehwan, & Kim, Geonhyeong. (2023). Corporate entertainment expenses and corruption in public procurement. Journal of Asian Economics, 84, 101554. https://doi.org/10.1016/j.asieco.2022.101554

    Kim, Seongcheol, Kim, Hyun Jeong, & Lee, Heejin. (2009). An institutional analysis of an e-government system for anti-corruption: The case of OPEN. Government information quarterly, 26(1), 42-50. https://doi.org/10.1016/j.giq.2008.09.002

    Kuncara, Wulansari Adi. (2022). The influence of Whistleblowing System and internal control on fraud prevention at PT Pos Indonesia (Persero) Bandung City. International Journal of Financial, Accounting, and Management, 4(2), 101-113.

    Lima, Weslley, Lira, Ricardo, Paiva, Anselmo, Silva, Jasson, & Silva, Victor. (2023). Methodology for automatic extraction of red flags in public procurement. Paper presented at the 2023 International Joint Conference on Neural Networks (IJCNN). https://doi.org/10.1109/IJCNN54540.2023.10191683

    Mircea, Marinela, Stoica, Marian, & Ghilic-Micu, Bogdan. (2022). Analysis of the impact of blockchain and internet of things (BIoT) on public procurement. IEEE Access, 10, 63353-63374. https://doi.org/10.1109/ACCESS.2022.3182656

    Nai, Roberto, Sulis, Emilio, & Meo, Rosa. (2022). Public procurement fraud detection and artificial intelligence techniques: a literature review. Paper presented at the Companion Proceedings of the 23rd International Conference on Knowledge Engineering and Knowledge Management.

    Osita, Fabian Chinedu, Chukwuemeka-Onuzulike, Nkechi Franciscan, Olayinka, Hammed Olalekan, & Onyeizugbe, Chinedu Uzochukwu. (2024). Ergonomic factors and performance of academics in public universities in Nigeria. Annals of Management and Organization Research, 6(2), 139-151. https://doi.org/10.35912/amor.v6i2.2079

    Otonne, Adewumi, & Ige, Olaoluwa Tosin. (2023). Exploring the influence of financial technology on banking services in Nigeria. International Journal of Financial, Accounting, and Management, 5(3), 323-341. https://doi.org/10.35912/ijfam.v5i3.1513

    Owusu, Emmanuel Kingsford, Chan, Albert PC, & Hosseini, M Reza. (2020). Impacts of anti-corruption barriers on the efficacy of anti-corruption measures in infrastructure projects: Implications for sustainable development. Journal of cleaner production, 246, 119078. https://doi.org/10.1016/j.jclepro.2019.119078

    Rendon, Juanita M, & Rendon, Rene G. (2016). Procurement fraud in the US Department of Defense: Implications for contracting processes and internal controls. Managerial auditing journal, 31(6/7), 748-767. doi:https://doi.org/10.1108/MAJ-11-2015-1267

    Rustiarini, Ni Wayan, Nurkholis, Nurkholis, & Andayani, Wuryan. (2019). Why people commit public procurement fraud? The fraud diamond view. Journal of public procurement, 19(4), 345-362. doi:https://doi.org/10.1108/JOPP-02-2019-0012

    Seneviratne, SM Chaturika, & Dharmasena, SD Thamali Navangana. (2023). Accounting undergraduates’ perspectives on integrating forensic accounting into the curriculum in Sri Lanka. International Journal of Financial, Accounting, and Management, 5(3), 359-372.

    Shareef, Shareef M. (2022). Mitigation of Corruption by Implementing e?Government Using Soft Computing. Advances in Fuzzy Systems, 2022(1), 3375567. https://doi.org/10.1155/2022/3375567

    Sukmadilaga, Citra, Winarningsih, Srihadi, Handayani, Tri, Herianti, Eva, & Ghani, Erlane K. (2022). Fraudulent financial reporting in ministerial and governmental institutions in Indonesia: An analysis using hexagon theory. Economies, 10(4), 86. doi:https://doi.org/10.3390/economies10040086

    Velasco, Rafael B, Carpanese, Igor, Interian, Ruben, Paulo Neto, Octavio CG, & Ribeiro, Celso C. (2021). A decision support system for fraud detection in public procurement. International Transactions in Operational Research, 28(1), 27-47. https://doi.org/10.1111/itor.12811

    Westerski, Adam, Kanagasabai, Rajaraman, Shaham, Eran, Narayanan, Amudha, Wong, Jiayu, & Singh, Manjeet. (2021). Explainable anomaly detection for procurement fraud identification—lessons from practical deployments. International Transactions in Operational Research, 28(6), 3276-3302. https://doi.org/10.1111/itor.12968

  1. Agbo, Emmanuel, & Egbunike, Chinedu. (2024). CEO Political Connection, Shareholding and Financial Distress of Deposit Money Banks in Nigeria. International Journal of Financial, Accounting, and Management, 6(1), 135-149.
  2. Akaba, Temofe Isaac, Norta, Alex, Udokwu, Chibuzor, & Draheim, Dirk. (2020). A framework for the adoption of blockchain-based e-procurement systems in the public sector: A case study of Nigeria. Paper presented at the Responsible Design, Implementation and Use of Information and Communication Technology: 19th IFIP WG 6.11 Conference on e-Business, e-Services, and e-Society, I3E 2020, Skukuza, South Africa, April 6–8, 2020, Proceedings, Part I 19. doi: https://doi.org/10.1007/978-3-030-44999-5_1
  3. Akushie, Erasmus Nii Amoo, & Yornu, Isaac Kofi. (2024). Procurement Ethics and Stakeholders' Satisfaction, the Moderating Role of Organizational Culture. Dama International Journal of Researchers, 9. doi:10.15373/22501991/VOL9/ISS5/FEB002
  4. Alsamarraie, Mundher M, & Ghazali, Farid E Mohamed. (2023). Barriers and Challenges for Public Procurement Integrity in Iraq: Systematic Review Study. KSCE Journal of Civil Engineering, 27(9), 3633-3645. https://doi.org/10.1007/s12205-023-1196-4
  5. Bosio, Erica, Hayman, Gavin, & Dubosse, Nancy. (2023). The investment case for e-government procurement: A cost–benefit analysis. Journal of Benefit-Cost Analysis, 14(S1), 81-107. https://doi.org/10.1017/bca.2023.10
  6. Chen, Shun-Hsing, Chen, Yang-Ju, & Leung, Wing-Ching. (2023). Analyzing differences in customer satisfaction on the video streaming platform Netflix. Annals of Management and Organization Research, 4(3), 193-209.
  7. Darusalam, Darusalam, Janssen, Marijn, Sohag, Kazi, Omar, Normah, & Said, Jamaliah. (2021). The influence of ICT on the control of corruption: a study using panel data from ASEAN countries. International Journal of Public Administration in the Digital Age (IJPADA), 8(1), 1-16. https://doi.org/10.4018/IJPADA.20210101.oa2
  8. Gallego, Jorge, Rivero, Gonzalo, & Martínez, Juan. (2021). Preventing rather than punishing: An early warning model of malfeasance in public procurement. International Journal of Forecasting, 37(1), 360-377. https://doi.org/10.1016/j.ijforecast.2020.06.006
  9. Graycar, Adam. (2019). Mapping corruption in procurement. Journal of Financial Crime, 26(1), 162-178. https://doi.org/10.1108/JFC-06-2018-0063
  10. Kang, Sungwon, Kim, Daehwan, & Kim, Geonhyeong. (2023). Corporate entertainment expenses and corruption in public procurement. Journal of Asian Economics, 84, 101554. https://doi.org/10.1016/j.asieco.2022.101554
  11. Kim, Seongcheol, Kim, Hyun Jeong, & Lee, Heejin. (2009). An institutional analysis of an e-government system for anti-corruption: The case of OPEN. Government information quarterly, 26(1), 42-50. https://doi.org/10.1016/j.giq.2008.09.002
  12. Kuncara, Wulansari Adi. (2022). The influence of Whistleblowing System and internal control on fraud prevention at PT Pos Indonesia (Persero) Bandung City. International Journal of Financial, Accounting, and Management, 4(2), 101-113.
  13. Lima, Weslley, Lira, Ricardo, Paiva, Anselmo, Silva, Jasson, & Silva, Victor. (2023). Methodology for automatic extraction of red flags in public procurement. Paper presented at the 2023 International Joint Conference on Neural Networks (IJCNN). https://doi.org/10.1109/IJCNN54540.2023.10191683
  14. Mircea, Marinela, Stoica, Marian, & Ghilic-Micu, Bogdan. (2022). Analysis of the impact of blockchain and internet of things (BIoT) on public procurement. IEEE Access, 10, 63353-63374. https://doi.org/10.1109/ACCESS.2022.3182656
  15. Nai, Roberto, Sulis, Emilio, & Meo, Rosa. (2022). Public procurement fraud detection and artificial intelligence techniques: a literature review. Paper presented at the Companion Proceedings of the 23rd International Conference on Knowledge Engineering and Knowledge Management.
  16. Osita, Fabian Chinedu, Chukwuemeka-Onuzulike, Nkechi Franciscan, Olayinka, Hammed Olalekan, & Onyeizugbe, Chinedu Uzochukwu. (2024). Ergonomic factors and performance of academics in public universities in Nigeria. Annals of Management and Organization Research, 6(2), 139-151. https://doi.org/10.35912/amor.v6i2.2079
  17. Otonne, Adewumi, & Ige, Olaoluwa Tosin. (2023). Exploring the influence of financial technology on banking services in Nigeria. International Journal of Financial, Accounting, and Management, 5(3), 323-341. https://doi.org/10.35912/ijfam.v5i3.1513
  18. Owusu, Emmanuel Kingsford, Chan, Albert PC, & Hosseini, M Reza. (2020). Impacts of anti-corruption barriers on the efficacy of anti-corruption measures in infrastructure projects: Implications for sustainable development. Journal of cleaner production, 246, 119078. https://doi.org/10.1016/j.jclepro.2019.119078
  19. Rendon, Juanita M, & Rendon, Rene G. (2016). Procurement fraud in the US Department of Defense: Implications for contracting processes and internal controls. Managerial auditing journal, 31(6/7), 748-767. doi:https://doi.org/10.1108/MAJ-11-2015-1267
  20. Rustiarini, Ni Wayan, Nurkholis, Nurkholis, & Andayani, Wuryan. (2019). Why people commit public procurement fraud? The fraud diamond view. Journal of public procurement, 19(4), 345-362. doi:https://doi.org/10.1108/JOPP-02-2019-0012
  21. Seneviratne, SM Chaturika, & Dharmasena, SD Thamali Navangana. (2023). Accounting undergraduates’ perspectives on integrating forensic accounting into the curriculum in Sri Lanka. International Journal of Financial, Accounting, and Management, 5(3), 359-372.
  22. Shareef, Shareef M. (2022). Mitigation of Corruption by Implementing e?Government Using Soft Computing. Advances in Fuzzy Systems, 2022(1), 3375567. https://doi.org/10.1155/2022/3375567
  23. Sukmadilaga, Citra, Winarningsih, Srihadi, Handayani, Tri, Herianti, Eva, & Ghani, Erlane K. (2022). Fraudulent financial reporting in ministerial and governmental institutions in Indonesia: An analysis using hexagon theory. Economies, 10(4), 86. doi:https://doi.org/10.3390/economies10040086
  24. Velasco, Rafael B, Carpanese, Igor, Interian, Ruben, Paulo Neto, Octavio CG, & Ribeiro, Celso C. (2021). A decision support system for fraud detection in public procurement. International Transactions in Operational Research, 28(1), 27-47. https://doi.org/10.1111/itor.12811
  25. Westerski, Adam, Kanagasabai, Rajaraman, Shaham, Eran, Narayanan, Amudha, Wong, Jiayu, & Singh, Manjeet. (2021). Explainable anomaly detection for procurement fraud identification—lessons from practical deployments. International Transactions in Operational Research, 28(6), 3276-3302. https://doi.org/10.1111/itor.12968