The Study of Individual Morality and Internal Control and the Relationship on Accounting Fraud

Muttiarni Muttiarni

doi:10.33096/atestasi.v4i1.593

Abstract

Good governance is required by society to create a government free of corruption, collusion, and nepotism. According to this study, individual morality and internal control impact accounting trends in Makassar City Regional Work Units. This study's data was obtained directly from the source without the use of intermediaries, namely by taking the data to the Makassar City Regional Revenue agency office and processing it using a Direct Questionnaire with 43 respondents as research objects. Hypothesis testing using the data analysis technique used, multiple linear regression with the Statistical Package for Social Science, was used for the analysis method (SPSS). According to hypothesis testing results, individual Morality and Internal Control have a negative and significant effect on the Tendency of Fraud Accounting. The study's findings are expected to lead to a greater focus on individual morality and internal control systems to reduce accounting fraud.

Highlights

Good governance is required by society to create a government free of corruption, collusion, and nepotism
The presentation of financial statements is a form of local government accountability that demonstrates that the government has exercised good governance to meet the community's aspirations and the state's goals (Mardiasmo, 2009; Muna & Harris, 2018; Muslim, Ahmad & Rahim, 2019)
Age, education level, and length of employment are among the questions asked about respondent characteristics OPD officials from South Sulawesi Province were used as respondents in this study

Summary

Introduction

Good governance is required by society to create a government free of corruption, collusion, and nepotism. Individual morality and internal control impact accounting trends in Makassar City Regional Work Units. According to hypothesis testing results, individual Morality and Internal Control have a negative and significant effect on the Tendency of Fraud Accounting. As part of the public's expectation of government accountability, the public expects a transparent financial report with adequate disclosure (Rahim, Ahmad, Muslim & Nursadirah, 2020). To avoid recording errors or acts of accounting fraud, government financial reports must be prepared by parties with expertise and competence in the area of regional financial accounting (Randiza & Anisma, 2016; Apriliana & Budiarto, 2018; Rahim et al, 2020). Fraud is an intentional act committed for personal gain that has resulted in a financial loss to one or more parties or institutions (Fahmi, 2008)

Objectives

Results

Discussion

Conclusion