Abstract
Fraud is one of the main problems for many organizations today. The more cases of fraud that occur in the banking sector in Indonesia, it is necessary to have fraud prevention efforts. This study aims to examine the effect of corporate ethical culture on the whistleblowing mechanism and its impact on fraud detection. This research was conducted using an explanatory quantitative research method with a survey through distributing questionnaires to all anti-fraud employees and the internal audit work unit who were directly involved in the whistleblowing mechanism at Bank XYZ who became respondents. The total respondents in this study amounted to 89 respondents. Statistical testing in this study used a statistical test approach with Smart PLS software version 3.0. The results of this study indicate that the company's ethical culture has a significant positive effect on the whistleblowing mechanism, the whistleblowing mechanism has a significant positive effect on fraud detection and the company's ethical culture has a significant positive effect on fraud detection with the whistleblowing mechanism while the influence of corporate ethical culture has no significant effect on fraud detection.
Highlights
Along with the development of the world economy that is increasingly complex, various forms of fraud develop
Based on data from Transparency International,it is explained that Index Persepsi Korupsi (IPK) which measures the level of state corruption in 2020 is based on surveys in 180 countries, Indonesia is a country that receives a CPI/score of 37, from a scale range of 0-100, and occupies the 102nd position out of 180 countries
This shows that the level of corruption in Indonesia is very high because based on IPK values that have the assumption that the lower the IPK value, the higher the level of corruption in a country (Transparency International, 2020)
Summary
Along with the development of the world economy that is increasingly complex, various forms of fraud develop. Based on data from Transparency International,it is explained that Index Persepsi Korupsi (IPK) which measures the level of state corruption in 2020 is based on surveys in 180 countries, Indonesia is a country that receives a CPI/score of 37, from a scale range of 0-100, and occupies the 102nd position out of 180 countries. In an effort to reduce the high number of fraud that occurs in the banking sector, especially preventive measures are needed that are structured with an approach to all aspects that are comprehensive creating an integrated system and building a culture within the company and forming an anti-fraud team as an early detection effort in overcoming the possibility of fraud in the company. Fraud detection can be seen from the introduction of fraud symptoms with the first indicator of accounting peculiarities, second internal control http://ajsss.julypress.com
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