Analysis of Factors that Affect the Effectiveness of Fraud Prevention Proxied by Professionalism and Internal Audit Experience and Corporate Accountability

Abstract

The condition of fraud in Indonesia in 2022 (ARN) Indonesia ranked fourth with 23 fraud cases. if left like an iceberg starting from small/little, or the omission will eventually become an iceberg. Based on these conditions, fraud can be prevented early with the effectiveness of fraud prevention. However, the effectiveness of fraud prevention is also influenced by several factors. Thus, the study aims to examine the factors that influence the effectiveness of fraud prevention by proxied by auditor professionalism, auditor experience, and company accountability. The research method is descriptive and verification with multiple regression tests. The population is 2018, and the sample is 150 manufacturing companies in Bandung Regency. Based on the study results, the factors proxied by the professionalism and experience of auditors and corporate accountability can significantly influence the effectiveness of fraud prevention in manufacturing companies in Bandung Regency both partially and simultaneously. This condition illustrates that the more professional and the longer experience the auditors have and supported by the existence of high corporate accountability both together and partially, the effectiveness of fraud prevention will be created through the creation of a transparent and honest cultural climate, a good control environment, effective risk management implementation, regular control, effective information and communication, and regular monitoring. Thus, it will provide benefits that one way to minimize fraud is to prevent fraud effectively. This will certainly be influenced by the proxy of internal auditors and effective internal audit experience and the company's accountability.