Influence of Corporate Governance, Ethical Considerations, Decision Making on Fraud Prevention With Internal Control System
Article Sidebar
Main Article Content
Abstract
The main purpose of this study is to determine the effect of corporate governance, ethical considerations, and decision making on fraud prevention with the internal control system as a moderating variable to determine how big the role of the internal control system in the company so that fraud can be overcome. Accounting data can be used as a tool to make the right and fast decisions. This research was conducted in South Sumatra, the results showed that the influence of corporate governance, ethical considerations, and decision making on fraud prevention with the internal control system as a moderating variable. The test tool used is multiple linear regression, then the method used is descriptive and verification methods. The research was conducted to determine the value of each variable, either one or more independent variables, to get an overview of these variables. The target population of this research is SOEs in the province of South Sumatra. The data for this study were collected by direct questionnaire and via e-mail collected from 45 BUMDs. The sample of the population in this study were 65 related units, namely the IT, HR, Sales, Finance, Warehouse, BUMN divisions in South Sumatra that were directly related to the Google Form to them for respondent responses. The sampling technique used is proportionate stratified random sampling. The results achieved indicate that the internal control system as a moderating variable is very important to achieve corporate governance, ethical considerations, and decision making on fraud prevention. The limitation of this research is that data collection cannot be done directly and can only be done online. The contribution of the results of this study to the development of accounting science is how companies know how to influence corporate governance, ethical considerations, decision making on fraud prevention with an internal control system.
Article Details
Section
This Journal is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License
How to Cite
References
K. H. S. Pickett, The Internal Auditing Handbook. London: John Wiley & Sons Inc, 2010.
I. Tak, “Impacts and Losses Caused By the Fraudulent and Manipulated Financial Information on Economic Decisions,” Rev. Manag. Comp. Int. Int. Comp. Manag., vol. 12, pp. 929–939, 2011.
Supriyati, R. S. Bahri, and E. Komarudin, “Computerized of International Financial Report Standard for Good Governance in Small Medium Enterpreses,” in IOP Conference Series: Materials Science and Engineering, 2019, vol. 662, no. 5, doi: 10.1088/1757-899X/662/5/052009.
Komisi Pemberantasan Korupsi, “Integritas Sektor Publik Indonesia Tahun 2013 Fakta Korupsi dalam Layanan Publik,” Komisi Pemberantasan Korupsi, 2013. [Online]. Available: https://www.kpk.go.id/id/publikasi/kajian-dan-penelitian/kajian-dan-penelitian-2/518-integritas-sektor-publik-indonesia-tahun-2013. [Accessed: 12-Sep-2021].
Komite Nasional Kebijakan Governance, Pedoman Umum Good Corporate Governance Indonesia. Jakarta: Komite Nasional Kebijakan Governance, 2006.
D. Eden and L. Moriah, “Impact of Internal Auditing on Branch Bank Performance: A Field Experiment,” Organ. Behav. Hum. Decis. Process., vol. 68, no. 3, pp. 262–271, 1996, doi: https://doi.org/10.1006/obhd.1996.0104.
H. FH., Utari, and S. Ali, “Analisis faktor-faktor yang mempengaruhui ketepatan waktu penyampaian laporan keuangan (Studi empiris pada perusahaan-perusahaan yang terdaftar di BEJ periode 2004-2006),” Universitas Gadjah Mada, 2008.
A. D. Afriyadi, “Erick Thohir Minta BPKP Pelototi BUMN,” detikFinance, 2021. [Online]. Available: https://finance.detik.com/berita-ekonomi-bisnis/d-5349497/erick-thohir-minta-bpkp-pelototi-bumn. [Accessed: 12-Sep-2021].
S. S. Harahap, Analisis Kritis atas Laporan Keuangan. Depok: RajaGrafindo Persada, 2018.
Khomsiyah and N. Indriantoro, “Pengaruh Orientasi Etika terhadap Komitmen dan Sensitivitas Etika Editor Pemerintah di Jakarta,” Indones. J. Account. Res., vol. 1, no. 2, 1998.
H. Kurniawati, F. A. Setiawan, and S. B. Kristanto, “Pengaruh Solvabilitas, Segmen Operasi, Dan Reputasi Kap Terhadap Audit Delay Pada Perusahaan Manufaktur Di Indonesia,” J. Akunt., vol. 20, no. 3, pp. 448–452, 2017, doi: 10.24912/ja.v20i3.8.
W. Zarkasyi, “Good corporate governance pada badan usaha manufaktur, perbankan, dan jasa keuangan lainnya,” Bandung Alf., vol. 5, 2008.
N. N. D. Ariyani, “Profitabilitas, Ukuran Perusahaan, Kompleksitas Operasi Perusahaan dan Reputasi KAP Terhadap Audit Report Lag Pada Perusahaan Manufaktur,” E-Jurnal Akunt., vol. 8, no. 2, pp. 217–230, 2014.
W. S. Albrecht, M. B. Romney, and K. R. Howe, Deterring Fraud: The Internal Auditor’s Perspective, 1st ed. North America: The Institute of Internal Auditors, 1984.
A. A. Arens, R. J. Elder, M. S. Beasley, H. Wibowo, T. Perti, and S. Saat, Auditing dan jasa assurance : pendekatan terintegrasi, Ke-15. Jakarta: Erlangga, 2015.
L. Hertati, W. Zarkasy, M. Adam, H. Umar, and H. Suharman, “Decrease in Labor Levels in the Covid-19 Government Budget,” Ilomata Int. J. Tax Account., vol. 1, no. 4, pp. 193–209, 2020, doi: 10.52728/ijtc.v1i4.131.
K. STRØM, “Delegation and accountability in parliamentary democracies,” Eur. J. Polit. Res., vol. 37, no. 3, pp. 261–289, 2000, doi: https://doi.org/10.1111/1475-6765.00513.
International Accounting Standards Boards, “International Standard on Auditing 610: Using The Work of Internal Auditors.” International Federation of Accountant (IFAC), 2009.
D. M. Boyle, D. H. Hermanson, and A. Wilkins, “Ethics audits: Implications for internal auditors,” Intern. Audit., vol. 26, no. 6, p. 3, 2011.
J. B. Carr and R. S. Browner, “Principled Opportunism: Evidence From The Organizational Middle,” Public Adm. Q., vol. 24, no. 1, pp. 109–138, 2000.
N. Soguel and F. Chatagny, “The Relevance of the Principal-Agent Model for the Analysis of Public Policies: Do the Objectives Conflict?,” Int. J. Interdiscip. Soc. Sci. Annu. Rev., vol. 2, pp. 385–392, 2007, doi: 10.18848/1833-1882/CGP/v02i01/52216.
I. Avianti, “Transaction Fraud Pada Laporan Keuangan Sebagai Salah Satu Modus Operandi Tindak Pidana Korupsi.” Universitas Padjadjaran, Bandung, 2008.
A. Alzeban and D. Gwilliam, “Factors affecting the internal audit effectiveness: A survey of the Saudi public sector,” J. Int. Accounting, Audit. Tax., vol. 23, no. 2, pp. 74–86, 2014, doi: https://doi.org/10.1016/j.intaccaudtax.2014.06.001.
L. Donaldson and J. H. Davis, “Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns,” Aust. J. Manag., vol. 16, no. 1, pp. 49–64, 1991, doi: 10.1177/031289629101600103.
M. Syafruddin, Raharja, and M. P. Sari, “Pengaruh Kesesuaian Etika Akademik pada Kepuasan, Komitmen dan Pindah Kerja,” J. Akunt. dan Bisnis, vol. 5, no. 2, pp. 107–121, 2005.
W. C. Boynton and R. N. Johnson, Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Editio. New York: Wiley, 2005.
The Institute of Internal Auditors, “Standards & Guidance — International Professional Practices Framework (IPPF).” The Institute of Internal Auditors, North America, 2015.
D. E. Kieso, J. J. Weygandt, and T. D. Warfield, Intermediate Accounting, 3rd Editio. New York: Wiley, 2017.
S. Kaplan, K. R. Pope, and J. A. Samuels, “The effect of social confrontation on individuals’ intentions to internally report fraud,” Behav. Res. Account., vol. 22, no. 2, pp. 51–67, 2010.
IFAC, International Framework: Good Governance in the Public Sector. New York: The International Federation of Accountants (IFAC), 2014.
R. P. S. Dhanis, “Pengaruh Mekanisme Good Corporate Governance Terhadap Kinerja Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia (2008-2010),” Universitas Negeri Yogyakarta, 2012.
G. Cheetham and G. Chivers, “The reflective (and competent) practitioner: a model of professional competence which seeks to harmonise the reflective practitioner and competence‐based approaches,” J. Eur. Ind. Train., vol. 22, no. 7, pp. 267–276, Jan. 1998, doi: 10.1108/03090599810230678.
Ikatan Akuntan Indonesia, “International Standards for the Professional Practice of Internal Auditing.” The IIA Research Foundation, Florida, 2011.
M. Allegrini and G. D’Onza, “Internal Auditing and Risk Assessment in Large Italian Companies: an Empirical Survey,” Int. J. Audit., vol. 7, no. 3, pp. 191–208, 2003, doi: https://doi.org/10.1046/j.1099-1123.2003.00070.x.
M. Allegrini, G. D’Onza, L. Paape, R. Melville, and G. Sarens, “The European literature review on internal auditing,” Manag. Audit. J., vol. 21, no. 8, pp. 845–853, Jan. 2006, doi: 10.1108/02686900610703787.
A. Agrawal and S. Chadha, “Corporate Governance and Accounting Scandals,” J. Law Econ., vol. 48, no. 2, pp. 371–406, 2005.
O. E. Emmanuel, M. A. Ajanya, and F. Audu, “An assessment of internal control audit on the efficency of public sector in Kogi State Nigeria,” Mediterr. J. Soc. Sci., vol. 4, no. 11, pp. 717–726, 2013, doi: 10.5901/mjss.2013.v4n11p717.
The International Public Sector Accounting Standards Board, “IPSASB Publishes Public Sector Conceptual Framework.” The International Public Sector Accounting Standards Board, New York, 2014.
INTOSAI Professional Standards Committee, Internal Audit Independence in the Public Sector. Vienna: INTOSAI General Secretariat - RECHNUNGSHOF, 2010.
L. K. Trevino and S. A. Youngblood, “Bad apples in bad barrels: A causal analysis of ethical decision-making behavior,” J. Appl. Psychol., vol. 75, no. 4, pp. 378–385, 1990, doi: 10.1037/0021-9010.75.4.378.
J. M. D’Aquila, “Financial Accountants’ Perceptions of Management’s Ethical Standards,” J. Bus. Ethics, vol. 31, no. 3, pp. 233–244, 2001.
The International Public Sector Accounting Standards Board, Conceptual Framework For General Purpose Financial Reporting By Public Sector Entities. New York: The International Federation of Accountants (IFAC), 2014.
F. van Beest, G. Braam, and S. Boelens, “Quality of Financial Reporting: measuring qualitative characteristics,” NiCE Work. Pap., vol. 09, no. 108, 2009, doi: 10.1515/ecfr.2008.213.
L. K. Treviño, K. D. Butterfield, and D. L. McCabe, “The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors,” Bus. Ethics Q., vol. 8, no. 3, pp. 447–476, 1998.
International Federation of Accountants, Preface to International Public Sector Accounting Standards. New York: International Federation of Accountants, 2007.
Sugiyono, Metode penelitian pendidikan:(pendekatan kuantitatif, kualitatif dan R & D). Alfabeta, 2008.
G. Imam, Aplikasi analisis multivariate dengan program IBM SPSS 19, vol. 68. Semarang: Badan Penerbit Universitas Diponegoro, 2011.
C. O. Albrecht, W. S.; Albrecht C. C.; Albrecht, W. S. Albrecht, Albrecht C. C., and C. O. Albrecht, “Fraud and Corporate Executives: Agency, Stewardship and Broken Trust,” Journal of Forensic Accounting, vol. 5. pp. 109–130, 2004.
A’fiah and N. Nur, “Peran Akuntan Dalam Mewujudkan Tata Kelola Pemerintahan Menuju Clean Government.” 2015.
Apriliane and M. Dwi, “Analisis Faktor-faktor yang Mempengaruhi Audit Delay pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia,” Universitas Negeri Yogyakarta, 2015.
S. Angruningrum and M. G. Wirakusuma, “Pengaruh Profitabilitas, Leverage, Kompleksitas Operasi, Reputasi Kap Dan Komite Audit Pada Audit Delay,” E-Jurnal Akunt., vol. 5, no. 2, pp. 251–270, 2013.
M. Beasley, J. Carcello, D. Hermanson, and P. Lapides, “Fraudulent Financial Reporting: Consideration of Industry Traits and Corporate Governance Mechanisms,” Account. Horizons - Acc. HORIZ, vol. 14, pp. 441–454, 2000, doi: 10.2308/acch.2000.14.4.441.