The Effect of Governance, Digitalization, Internal Auditors on Fraud Prevention and Impact on Public Accountability (Survey at The Ministry of Finance)

Abstract

The Covid-19 pandemic has changed work patterns, which mostly rely on information technology. This makes the span of control wider so that Governance, Digitalization, and Internal Auditors to prevent fraud that needs to be evaluated. This research is a quantitative research through surveys with questionnaires and a variance-based SEM approach with SmartPLS. The sampling technique used was purposive sampling in the population at the Ministry of Finance of 1,054 offices spread throughout Indonesia by the Yamane/Isaac and Michael formula (290 samples) and total of 655 respondents were employees in the internal compliance/financial reporting department. Before testing the hypothesis, validity and reliability were first tested. This study finds that the law enforcement for fraudulent behavior in government must be carried out objectively free from the influence of power interests. Furthermore, the Ministry of Finance needs to review the digitization of the State Revenue Module (MPN) and the State Treasury and Budget System (SPAN) to ensure compliance with best practices considering that these systems have weaknesses in fraud prevention. The novelty in this research is related to the influence of democracy, legal culture, MPN and SPAN in fraud prevention and their impact on public accountability.