Organizational culture as moderating the influence of internal control and community participation on fraud prevention in village fund management during the COVID-19 pandemic

Abstract

The purpose of this study was to examine organizational culture in moderating the influence of internal control and community participation on fraud prevention in managing village funds during the covid-19 pandemic. The sample of this study was 27 villages in the province of Bali with 3 villages in each district/city having the highest Village Fund Direct Cash Assistance, so that there were 161 respondents. Data collected using a questionnaire. The data analysis technique used the Partial Least Square (PLS) method. Results show that internal control and community participation have a positive effect on preventing fraud in managing village funds during the Covid-19 pandemic. The results also show that organizational culture strengthens the influence of internal control and community participation on fraud prevention in managing village funds during the Covid-19 pandemic. This shows that the better internal control, and community participation which is strengthened by organizational culture, the prevention of fraud in the management of village funds during the covid-19 pandemic will be better.

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

“…Associated with the problem of fraud, one of the factors that can prevent fraud is an organizational culture that is honest and has a professional commitment in carrying out its duties accompanied by the principles of prudence, thoroughness, and accuracy guided by standards and regulations so as to minimize fraudulent actions that occur. It is concluded that the higher the professionalism of the internal auditors reinforced by the organizational culture, the better the fraud prevention efforts that can be done (Putra et al, 2021;Nazarova et al, 2021;Jancowicz-Pitel, 2019).…”

Experiences of nursing professionals involved in the care of COVID-19 patients

“…The findings are validated from the participants (Lähdevirta et al, 1988;. (Putra et al, 2021;Melnychuk et al, 2021).…”

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 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).…”