The Influence of Organizational Commitment on Employee Fraud with Effectiveness of Internal Control and Organizational Justice as a Moderating Variable

Internal Control Role in Relationship Between Employee and Public Sector Organizations

“…Candreva (2006), also concluded that in order to achieve public Organizational Performance (performance targets), organizational management must run strict ICS. Manurung, et al (2015), showed that high employee commitment must be accompanied by the high effectiveness of ICS also to achieve the expected Organizational Performance. Commitments that are much influenced by extrinsic factors can provide success for Organizational Performance with employees who have emotional attachments (Camilleri and Van der Heijden, 2007) in the organization.…”

“…If employees can guarantee that internal control in their organization is running well, the target of Organizational Performance contained in the performance contract will be achieved. Research by Manurung, et al (2015), regarding the influence of Organizational Commitment to fraud committed by employees found that high commitment would increase the effectiveness of internal control and prevent fraud. Prasetyono and Kompyurini (2007), state that there is a relationship between Organizational Commitment, internal control and the application of good corporate governance to Organizational Performance.…”

Modeling Sustainability Model of Islamic Microfinance Institutions

“…Fraud is a combination of irregularities and illegal actions committed through intentional manipulation and carried out for the gain or loss of an organisation by outsiders or people within the organisation (The American Institute of Internal Auditors, 1992 in Herman (2013)). Manurung, Suhartadi, and Saefudin (2015) stated that fraud is a form of action taken, such as the use of an office or someone's work, in order to obtain personal wealth, through the abuse of resources or organisational wealth. According to Akwasi, Gilbert, and Hannah (2014), fraud involves an intentional forgery, camouflage or the exclusion of truth carried out by a person or an organisation in order to manage dishonesty against financial damage.…”

The Role of Internal Control to Prevent the Fraud in Small and Micro Enterprises: A Turkish Perspective

“…In order to detect or prevent any fraud, an enterprise has to establish an efficient internal control system in the accounting process (Foster, et al, 2010). Accounting control, coordinated by the related enterprise in order to ensure the precision and credibility of accounting statements, is a part of the internal control system, which covers organizational structure, methods and measurements (Manurung et al, 2015). Internal control is a system established with the purpose of securing the execution of the activity and efficiency of operations, the authenticity and legitimacy of account currents (COSO, 2015).COSO describes internal control as follows: "Establishing a common structure so as to meet the needs of different departments of the same enterprise; establishing a control system procedure, without the aim of getting profit or not thinking about profit, without discriminating small or big enterprises and in accordance with the criteria predetermined by public or private enterprises and aiding this structure to advance" (Atmaca, 2012).…”