The Factors Affecting Tendency of Fraud in Government Sector

Abstract

<p>The purpose of this study is to explore perception of government officials in government agencies about the effects of morality of individuals, organizational culture, and leadership style on tendency of fraud. This study is a quantitative research using a survey which collected main data from the samples by using questionnaire. This research was analyzed with Multiple Linear Regression Analysis. The respondents of this research were the Subsection Head of Finance and Expenditure Treasurer. The findings indicate that morality of individuals has no significant effect on tendency of fraud, while organizational culture and leadership style have a significant negative effect on tendency of<em> </em>fraud.</p><p>Tujuan penelitian ini adalah untuk menggali persepsi para pegawai pemerintah di instansi pemerintahan mengenai pengaruh moralitas individu, budaya organisasi, dan gaya kepemimpinan terhadap kecenderungan fraud. Penelitian ini menggunakan metode kuantitatif dengan cara survei yakni mengumpulkan data pokok dari suatu sampel dengan memakai instrumen kuesioner. Penelitian ini dianalisis dengan menggunakan Analisis Regresi Linier Berganda. Responden penelitian adalah kepada Kasubbag Keuangan dan Bendahara Pengeluaran. Hasil penelitian menunjukkan bahwa moralitas individu tidak berpengaruh signifikan terhadap kecenderungan fraud, sedangkan budaya organisasi dan gaya kepemimpinan berpengaruh negatif signifikan terhadap kecenderungan fraud.</p>

The Tendency for Occupational Fraud in Malaysian Small Medium Enterprises and The Effect of Internal Control, Ethical Culture and Awareness on Fraud

“…There are many past research (N'Guilla Sow, Basiruddin, Mohammad, et al, 2018;Tazilah & Hussain, 2015) that study on the effect of internal control in small companies like SMEs. Thus far, previous study (Fernandhytia & Muslichah, 2020;Lestari et al, 2017;Setiawan, 2018) has shown a negative relationship between the internal control and accounting fraud tendency. Most of these studies only provided evidence specifically on accounting fraud not generally on occupational fraud.…”

“…Several studies have been done to examine causes for occupational fraud tendency in companies. Nevertheless most had focused on accounting fraud tendency which is part of occupational fraud as seen in Fernandhytia & Muslichah (2020); Lestari et al (2017); Putri & Irwandi (2017) and excluded asset misappropriation. Several other studies have examined occupational fraud cases from the perspective of public listed companies and public sector, while excluded SMEs in their sample as seen in (Gunasegaran et al, 2018;Omar et al, 2016;Mohamed et al, 2017).…”

Governance structure and the tendency to do financial statements fraud

“…One possible reason for that was because in this study the definition of educational background was only about the level of education. The high morality of individuals can be seen from the participation of the respondents in the course/training/ technical guidance in the field of accounting (Lestari et al, 2017). Having an educational background based on the type of business and industry can increase the directors' knowledge in business continuity (Kusumastuti et al, 2007).…”

Internal Controls, Investigative Audits, and Forensic Accounting Can Help Prevent Fraud

“…Audit of investigation [7] [8]. However, unlike [9], which demonstrates that investigative audits have no influence on fraud disclosure. Forensic accounting [3] has an effect on fraud disclosure variables, but varies from [10] and [11] in that it does not have an effect on fraud disclosure.…”