Abstract
This study aims to analyze the antecedent variables of religiosity (suitability of compensation, money ethics and internal control system) and the consequences on accounting fraud among regional officials. The study method used here was descriptive quantitative method with a correlation approach, the sampling used purposive sampling technique. Data collection in this study was conducted by distributing questionnaires to the officials of the Regional Work Units (SKPD) of Serang City and Regency. Data analysis used Structural Equation Modelling (SEM) with SmartPLS program. The results of the study showed that the suitability of compensation had a negative effect, money ethics had a positive effect, the internal control system had a negative effect and religiosity had a negative effect on accounting fraud among the regional officials. Then the suitability of compensation, money ethics and internal control systems were proved to be the antecedent variables of religiosity.
Highlights
In the current era of globalization, every country has its own strategies and systems in an effort to achieve its goals, and so does Indonesia
Based on the results of data processing using SmartPLS, it could be explained the value of outer loading or correlation between constructs with compensation suitability variable, money ethics and the effectiveness of internal control system, with moderating variable of religiosity and dependent variable of accounting fraud As a whole, the Discriminant Validity and Composite Reliability were sufficient because the outer loading value was above 0.50
Based on the estimated output for testing structural models, it could be seen that compensation suitability had a negative effect on accounting fraud (2.922 > 1.96); money ethics had a positive effect on accounting fraud (9.21 > 1.96); internal control system had a negative effect on accounting fraud (-2.6654 > -1.96); religiosity had a negative effect on accounting fraud 2.654 > -1.96 (Table 1)
Summary
In the current era of globalization, every country has its own strategies and systems in an effort to achieve its goals, and so does Indonesia. Indonesia implements a regional autonomy system, where each region has the right, authority and obligation to regulate government affairs and the interests of the local community in accordance with the laws and regulations starting from the provincial level to the sub-district level. The impact of the implementation of autonomy system resulted in several changes that occurred in the relationship between the executive and the legislative. Executives and councils have full autonomy to make local policies; and second, council members have full autonomy and have a big role in the legislative process. The authority of the council in making policies is not limited to making laws, and supervision, investigation, and together with executives compiling APBD that were not previously carried out. One that stands out is the emergence of institutional crime, both executive and legislative. Ccorruption among bureaucrats is difficult to avoid, because political scandals on power and bureaucracy really played a very large role
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