Abstract
This study aims to understand the practice of fraud prevention and detection by government internal auditors in Jember Regency. This study uses interpretive qualitative research methods with an ethnomethodology approach. Data collection was carried out through interviews with six supervisors/auditors as key informants. The results of this study show that fraud prevention by the Jember Regency internal auditor is carried out in the consulting activities and reviewing the work plan and budget (Rencana Kerja dan Anggaran, RKA) of Regional Government Organization (Organisasi Perangkat Daerah, OPD). The detection of fraud by the Jember Regency internal auditor is carried out through regular audits and community complaint services, where the community complaint service will be explored by the Jember Regency internal auditor by conducting a special inspection. Thus, the results of this study show that the government's internal auditors have an important role in fraud prevention.
Highlights
The government as a state organizer trusted by the public in managing state finances is inseparable from the threat of fraud
Prevention efforts have been carried out including mandating each government agency to have an Internal Control System team, build various electronic systems to support the process of transparency and accountability in the implementation of government activities, as well as payment of performance benefits made in an effort to increase income and arouse work enthusiasm, government employees
This study aims to understand the practice of fraud prevention and detection by government internal auditors in Jember Regency
Summary
The government as a state organizer trusted by the public in managing state finances is inseparable from the threat of fraud. Acts of fraud on government agencies is a phenomenon that often occurs. The results of the ACFE report in 2016 revealed that fraud in the government sector came second, after the banking sector and financial services. This phenomenon is caused by public sector organizations having a fairly complex bureaucratic structure, low employee integrity, and a weak control system (Sulastri & Simanjuntak, 2014). The types of fraud that often occur in the government system in Indonesia include goods procurement markups, gratuities, embezzlement of assets, fictitious activities/events, inappropriate auction arrangements, illegal levies, lack of volume/spectra in project development, fictitious salaries and embezzlement of government treasury (Faisal, 2018; Rustendi, 2017). Prevention efforts have been carried out including mandating each government agency to have an Internal Control System team, build various electronic systems to support the process of transparency and accountability in the implementation of government activities, as well as payment of performance benefits made in an effort to increase income and arouse work enthusiasm, government employees
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