effect of independence, professionalism, and experience of internal auditors on fraud prevention with organizational culture as moderating variable

Abstract

This study aims to examine the effect of independence, professionalism, and experience of internal auditors on fraud prevention with organizational culture as a moderating variable. The research data were collected through questionnaires, the research respondents were the internal auditors of Rural Banks in Bali. The method of determining the sample using purposive sampling with the criteria of internal auditors who have more then a year work experience, with 140 respondents. The data analysis technique used in this research is Path Analysis (SEM-PLS). The results showed that the independence, professionalism, and experience of internal auditors had a positive effect on fraud prevention; and organizational culture strengthen the positive influence of independence, professionalism, and experience of internal auditors on fraud prevention.

Organizational culture moderates the effect of bystander effect and internal control on accounting fraud trends in village credit institutions in Jembrana Regency

“…The results of this study are in line with (Ozigbo, 2013), (Nahar & Nigar, 2018) (Putri et al, 2022) and (Putra et al, 2021) that the presence of a positive organizational culture will support increased company performance and improve internal control. This will reduce the tendency for fraudulent financial statements to occur.…”

“…The results of this study are in line with statements by (Ozigbo, 2013), (Duke, 2021), (Shepherd et al, 2011) and (Nahar & Nigar, 2018) that the presence of a positive organizational culture will be able to reduce the bystander effect, thereby reducing the tendency financial statement fraud. Similarly, the results of research by (Putri et al, 2022) (Putra et al, 2021), that a positive organizational culture will strengthen the prevention of fraud.…”

“…If the opposite happens, the company does not implement positive organizational culture behavior, it will fail to prevent fraud (Duke, 2021) because negative organizational culture behavior shows the real perceived failure of the company (Shepherd et al,2011), it will strengthen the presence of the bystander. Organizational culture is a variable that can strengthen or weaken the tendency to prevent fraud, a positive organizational culture will strengthen the prevention of fraud, whereas a negative organizational culture will weaken the prevention of fraud (Putri et al, 2022) (Putra et al, 2021).…”

“…On the other hand, if the internal control system is inadequate, but the company implements a positive organizational culture, it will be able to prevent fraud. Organizational culture is a variable that can strengthen or weaken the tendency to prevent fraud, a positive organizational culture will strengthen the prevention of fraud, whereas a negative organizational culture will weaken the prevention of fraud (Putri et al, 2022), (Putra et al, 2021).…”

The Effect of Auditor's Competence, Professionalism, and Organizational Culture on the Quality of Financial Statements

“…According to Putra et al (2022) the existence of organizational culture can increase high creativity so that employees will be motivated in carrying out their work. Putri et al (2022) define organizational culture as a set of beliefs, assumptions, values and symbols that are used to determine the way in which organizations do business. According to organizational culture, it might serve as a tool to support the business's strategy in achieving its goals, namely performing well.…”