The effect of individual intention on fraud behavior

Budi Utomo Budi Utomo,Roekhudin Roekhudin,Gugus Irianto

doi:10.20525/ijrbs.v10i3.1157

Budi Utomo Budi Utomo, Roekhudin Roekhudin + Show 1 more

Open Access

https://doi.org/10.20525/ijrbs.v10i3.1157

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Abstract

This study aims to examine the effect of pressure, opportunity, rationalization on intention to commit fraud. This study also examines the effect of intention to commit fraud on fraud behavior by religiosity as the moderating variable. This research was conducted at the Village Government of Malang Regency. The sampling method uses the probability sampling method. The data in this study was obtained by distributing 191 questionnaires to respondents who served as village heads or village secretaries in the Village Government of Malang Regency. The analysis technique uses Structural Equation Modeling (SEM) through the smartPLS program. The results show that opportunity and rationalization has a positive effect on the intention to commit fraud. Meanwhile, pressure does not affect the intention to commit fraud. The results also show that the intention to commit fraud has a positive effect on fraud behavior. Meanwhile, Religiosity does not moderate the effect of intention to commit fraud on fraud behavior.

Highlights

The number of corruption cases in Indonesia is still quite large
It can be said that opportunity can influence an individual's intention to commit fraud because basically intention plays an important role in behavior
The results showed that Hypothesis 5 was rejected, which means that religiosity cannot moderate the effect of intention to commit fraud on fraud behavior

Summary

Introduction

The Corruption Perception Index (CPI) or which is defined as the corruption perception index (CPI), a survey agency that shows the level of corruption in countries in the world released the 2019 Annual Corruption Perception Index Report. The Institute of Internal Auditors (IIA, 2009) defines fraud as a series of deviations and illegal acts characterized by deliberate fraud, committed by individuals inside or outside the organization for their personal gain or for organizational interests. These acts of fraud can be caused by two factors, namely internal factors and external factors that exist in each individual, for example because of the individual's greed attitude, level of need, and opportunities

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