Effective Internal Control Research Articles

PENGARUH PENGENDALIAN INTERN TERHADAP AKUNTABILITAS KINERJA INSTANSI PEMERINTAH DENGAN GAYA KEPEMIMPINAN SEBAGAI VARIABEL MODERASI (STUDI EMPIRIS PADA DINAS KOTA PALANGKA RAYA)

This study aims to provide an empirical explanation of the effect of internal control on the performance accountability of government agencies with leadership style as a moderating variable. The research method used in this research is descriptive statistical analysis, data instrument testing (validity and reliability tests), hypothesis testing, and determination coefficient test. The total population of this study consisted of 18 offices in the city of Palangka Raya using the census method, with the criteria set by the researcher, namely employees of the sub-planning, evaluation, reporting, and financial sections. at the Palangka Raya City Office, 60 people were sampled. The type of data used is primary data. The collected data were analyzed using IBM SPSS Statistics version 25. The results showed that the first hypothesis of internal control has an effect on the performance accountability of government agencies accepted. The second hypothesis of leadership style as a moderating variable strengthens the effect of internal control on the performance accountability of government agencies.

Pengaruh Efektivitas Pengendalian Internal, Kesesuaian Kompensasi dan Moralitas Individu Terhadap Kecenderungan Kecurangan Akuntansi Studi Kasus pada BKD Kabupaten Boyolali

This study aims to determine the effect of the effectiveness of internal control, compensation suitability, individual morality on the tendency of accounting fraud. The sampling technique in this study used a purposive sampling technique. The method of data analysis in this study used the multiple linear regression analysis method with the SPSS program. The data analysis method consisted of descriptive statistical test, data quality test and classical assumption test. This study uses hypothesis testing consisting of multiple linear regression test. Based on the results of this study indicate that the effectiveness of internal control has a significant effect on the tendency of accounting fraud, the suitability of compensation has a significant effect on the tendency of accounting fraud. While individual morality does not have a significant effect on the tendency of accounting fraud. Keywords: Accounting Fraud Tendency, Compensation Suitability, Individual Morale, Internal Control Effectiveness

PENGARUH PENGENDALIAN INTERNAL DAN AUDIT INTERNAL TERHADAP PENCEGAHAN FRAUD DENGAN ANTI-FRAUD AWARENESS SEBAGAI PEMODERASI PADA INDUSTRI PERBANKAN INDONESIA

This study aims to examine the effect of internal control and internal audit on fraud prevention, as well as investigate whether anti-fraud awareness can moderate the relationship between internal control and internal audit on fraud prevention in the Indonesian banking industry. This study used 138 respondents consisting of Indonesian banking employees. These respondents came from Indonesian commercial banks. The data collection used in this study is a questionnaire distributed using Google Forms to the respondents starting from July to August 2022. This study uses PLS-SEM (Partial Least Square Structural Equation Modeling) as a method of data analysis and uses WarpPLS software version 7.0 as a data processing tool. The findings of this study indicate that internal control and internal audit have a positive relationship to fraud prevention and the anti-fraud awareness variable is able to moderate the relationship between internal control and internal audit with fraud prevention. These findings are expected to be a perspective for Indonesian banks in preventing potential fraud in their organizations.

Analysis of Factors Affecting the Tendency of Employees’ Act of Committing Fraud in Companies (Case Study at the W-Four Unipesoal Supermarket, Lda)

This study aims to analyze the influence of the effectiveness of internal control, the effect of suitability of compensation and the effect of enforcement of regulations and analyze the influence of organizational culture on the tendency of committing fraud. The population of this study were all staff and employees of W – Four Supermarket, Lda, with the total of 180 people and a sample which compose of 65 people. The data collection method used was a questionnaire. Data analysis techniques using SPSS. The results showed that internal control had a positive and significant effect on the tendency of committing fraud, the appropriateness of compensation had a positive and significant effect on the tendency of committing fraud, enforcement of regulations had no effect on the tendency of committing fraud, and organizational culture had no effect on the tendency of committing fraud.

Fraud Prevention in the Public Accountant Firm

This study aimed to determine the effects of internal controls, auditor competence, and auditor independence on fraud prevention in the Public Accounting Firm in the Jabodetabek area. The study employed a quantitative method with a purposive sampling technique. The total sample was 200 respondents, and the data was processed using the SmartPLS application. The test methods applied the validity, reliability, and hypothesis tests. The results revealed that internal controls and auditor competence positively affected the fraud prevention. Meanwhile, auditor independence showed a positive relationship, but did not show a significant effect.

Impacts of tax enforcement and independent audit on financial reporting quality through the internal control effectiveness: Evidence from Vietnam enterprises

Based mainly on agency theory, this research examines the impacts of tax enforcement and independent audit on the internal control effectiveness and financial reporting quality in Vietnam enterprises. The data analysis is applied to PLS-SEM. The survey method was carried out on a sample of 341 enterprises with headquarters mainly in the three largest cities of Vietnam (Hanoi, Hochiminh and Danang cities) from April to June 2021. The result findings showed that all three factors: independent audit, tax enforcement, and internal control effectiveness, have significant impacts on the financial reporting quality; particularly, tax enforcement has a negative effect while the other two factors have a positive impact. This research’s main contribution is the negative relationship between tax enforcement and financial reporting quality. This result shows the contractionary view with other existing research. The difference in this research’s findings compared to other existing research was explained in theoretical and practical perspectives. In addition, the mediating role of internal control in the relationship between tax enforcement, independent audit and financial reporting quality was confirmed through results. The findings of this research are very important in proposing regulations and policies related to implementing the monitoring mechanism from both inside (internal control system) and outside the enterprise (independent audit, tax enforcement) to increase the quality of financial reports.

The Effect of Internal Control by using COSO Framework on Revenue Toward Employee Performance: A Case Study in Public Hospital of South of Tangerang, Indonesia

The Effect of Internal Control by using COSO Framework on Revenue Toward Employee Performance: A Case Study in Public Hospital of South of Tangerang, Indonesia

Pencegahan Fraud Pengelolaan Dana Desa Dengan Akuntabilitas, Whistle Blowing, Kompetensi Aparatur Dan Pengendalian Internal

The purpose of this study was to empirically test the effect of accountability, whistleblowing, apparatus competence and the effectiveness of internal control on fraud prevention in managing village funds. The research was conducted at the Village Government in the Province of DIY. The method used in this research is mix methods. The stages of the method are 1). quantitative method by distributing questionnaires to the respondents and continued 2). qualitative method, namely by interviewing the respondents. The analysis tool for model testing uses Partial Least Square (PLS). The results of the quantitative study showed that the prevention of fraud in the management of village funds which was tested on the Village government in the DIY Province proved to be empirically positively influenced by the accountability factor while the whistleblowing factor, apparatus competence, and internal control did not positively affect it. The results of the qualitative research can be concluded from the interview process that it can be concluded that the process of planning, compiling, implementing and reporting village funds in the Village Government of the Village of Kalurahan in the Provincial Government of DIY, as a whole refers to the mechanism of provisions and rules that have been established both at the Regional Regulation level (Perda), District Regulations and Village Regulations of the Village government. The use of village funds and reporting of village funds, regular monitoring and inspection is carried out by other parties or institutions or agencies appointed by the village village administration. In preventing and overcoming fraud in the management and use of village funds, the village government cooperates with the government inspectorate to provide guidance and assistance for routine inspections from the Provincial BPK/BPKP, and Consultants.

Pengaruh Akuntabilitas, Kesesuaian Kompensasi, Pengendalian Internal, dan Budaya Organisasi terhadap Kecurangan Dana Desa

This study aims to examine the effect of accountability, compensation suitability, internal control, and organizational culture on village fund fraud. The population in this study were 55 villages in the City of Pariaman. The sampling method used is purposive sampling method. The sample criteria in this study are the Village Head, Village Secretary, and Village Treasurer from 55 villages in Pariaman City who directly participate in village financial management. The data is a primary data which collected by using questionnaires. The results of this study indicate that the suitability of compensation and Internal control have no effect on fraudulent village funds, while accountability and organizational culture have negative effects on village fund fraud.

PENGARUH EFEKTIVITAS PENGENDALIAN INTERNAL DAN AKSESIBILITAS LAPORAN KEUANGAN TERHADAP TRANSPARANSI PENGELOLAAN KEUANGAN DAERAH PADA PEMERINTAH ACEH

This study aims to determine the effect of the effectiveness of internal control and accessibility of financial reports on the transparency of regional financial management in the Aceh government. In this study, the data used is secondary data. The sample selection technique uses Non-Probability Sampling with the census method, where the sample is taken from the entire research population of as many as 46 SKPA with two respondents for each SKPA. The data analysis method used is multiple linear regression analysis which will be carried out using SPSS software. The results of the study show that 1) the effectiveness of internal control and the accessibility of financial reports simultaneously have a significant effect on the transparency of financial management in the Aceh Government. 2) The effectiveness of internal control has a negative and significant effect on the transparency of financial management in the Aceh Government. 3) Accessibility of financial statements has a negative and significant effect on the transparency of financial management in the Aceh Government.

ICS Effectiveness, Application AIS, HRC on Good Governance and Impact Quality FS

This study aims to determine the effect of the effectiveness of the internal control system, the application of accounting information systems, and the competence of human resources on the implementation of good governance and its impact on the quality of regional financial statements. This research was conducted at the Regional Organization (OPD) in South Tangerang City using the purposive sampling method and conducted a survey of 30 OPD as a research sample. Data collection was carried out by distributing questionnaires to 100 respondents. The data analysis method uses descriptive statistical analysis using SEM PLS as an analytical tool in this study. The results showed that: the effectiveness of the internal control system has a positive and significant effect on good governance, the application of the accounting information system does not have a significant effect on good governance, Human resource competence does not have a significant effect on good governance, the effectiveness of internal control does not have a significant effect on the quality of financial statements, the establishment of accounting information systems has no significant effect on financial statements, human resource competence has no significant effect on financial statements, and good governance has a positive and significant impact on the quality of financial statements.

FENOMENA KECURANGAN PEMESANAN PADA JASA TRANSPORTASI ONLINE DALAM PERSPEKTIF FRAUD TRIANGLE

Abstract
 The background of this research is that online transportation service providers found fraud committed by online transportation drivers, using fake GPS applications, making fictitious orders, and giving the highest star rating. This study aims to analyze the effect of internal control, morality, and pressure on fraudulent ordering behavior in online transportation services. This study uses a quantitative approach. The sampling technique was purposive sampling with a total sample of 100 respondents. The data type is primary data using a questionnaire tested by multiple regression analysis. The study results show that the variables of internal control, morality, and pressure influence online transportation services' fraudulent ordering behavior in Pontianak.

Management equity incentives and corporate tax avoidance: Moderating role of the internal control.

Under the modern enterprise system, the principal-agent relationship can cause a conflict of interest between the two power counterparts, thus affecting the degree of corporate tax avoidance. As a tool to align the interests of management and owners, management equity incentives can alleviate the conflict of interests brought about by the separation of powers and, therefore, may influence corporate tax avoidance. We examine the relationship between management equity incentives and corporate tax avoidance from both theoretical and empirical perspectives by using data from Chinese A-share listed companies from 2016 to 2020. Firstly, the effect of management equity incentives on tax avoidance is theoretically and normatively analyzed. Secondly, examine the effectiveness of moderating the effect of internal control and distinguishing the ownership of enterprises' nature through regression analysis. (1) There is a positive relationship between management equity incentives and corporate tax avoidance which means, more the stock incentive offered to executives, the more likely corporations are to pursue tax avoidance strategies aggressively. (2) Internal control deficiencies enhance the positive relationship between equity incentives and enterprise tax avoidance behavior. Therefore, in Chinese enterprises, the lack of an internal control system and the failure of internal control measures are prevalent, and such loopholes can intensify the tax avoidance behavior that arises when executives are subject to equity incentives. (3) The influence of management equity incentives on enterprise tax avoidance behavior is greater in state-owned (SOE) than private enterprises. State-owned enterprises are more likely to increase enterprise tax avoidance behavior when management is subject to equity incentives for reasons such as strict performance requirements, lower regulatory oversight, and less interference from negative information. Finally, our findings have significant implications for policymakers/regulators, public companies, investors, standard setters, managerial labor markets, and the welfare of the overall economy.

The Tendency for Occupational Fraud in Malaysian Small Medium Enterprises and The Effect of Internal Control, Ethical Culture and Awareness on Fraud

Occupational fraud requires serious attention due to its detrimental effect towards businesses, nation’s economy, and community well-being. Implications led to businesses losing their revenue while affecting global economy negatively and depriving the society of fair share on nation’s wealth. Malaysia’s businesses have seen cases of occupational fraud among small, medium sized enterprises (SME) representing the significant portion of country’s business population of 95%. Such vulnerability among them were due to deficiency in control system. Hence this study aims to assess the influence of internal control, fraud awareness and ethical culture on tendency of occupational fraud within SMEs in Malaysia. Most past studies have focused on public sector and listed companies while limited study was done on SME with inconsistent results. Questionnaire survey was adopted with SME staffs as respondents from 384 SME out of 907,065 establishments. Data collected was analyzed using multiple regression which revealed significant influence by internal control and fraud awareness factors on tendency of occupational fraud among SME staffs, while ethical culture showed insignificant influence. This study has limitation due to limited number of response rate of 33% and sample may not consist of SME whose staffs had committed occupational fraud. The finding provides further evidence on tendency of occupational fraud among SMEs. It will be useful for organizations, especially SMEs in understanding potential areas requiring further attention to remedy occupational fraud.

THE INFLUENCE OF INTERNAL AUDIT, EFFECTIVENESS OF CONTROL AND ACCOUNTING INFORMATION SYSTEMS ON FRAUD DETECTION (STUDY AT DOMPU REGIONAL DRINKING WATER COMPANY)

This study aims to determine internal audit, internal control effectiveness, and accounting information systems on fraud detection at the Dompu Regional Drinking Water Company (PDAM). Sampling using purposive sampling method and analysis tools using multiple linear regression method with a total of 55 employees as respondents. The data collection method used is a questionnaire. The results of this study indicate that internal audit, internal control effectiveness influences fraud detection. Meanwhile, the accounting information system has no effect on fraud detection. The Adjusted R Square value for the coefficient of determination is 0.366 or 36.6% of the level of fraud detection. The remaining 63.4% is influenced by other factors that are not included in this research method.

The Effect of Internal Auditor's Competence and Internal Control Effectiveness on Financial Statements Quality

This study aims to analyze the effect of the influence of internal auditor competence and the effectiveness of internal control on the quality of financial statements with professional scepticism as a moderating variable. The population in this study were 32 respondents at the Inspectorate of the Ministry of Youth and Sports. The sampling technique in this study is a saturated sample technique. The sample in this study was 32 respondents based on the Functional Position of Auditor and Supervision for the Implementation of Government Affairs (JFT) at the Inspectorate Office of the Ministry of Youth and Sports. The results of this study indicate that the competence of internal auditors and the effectiveness of internal control have a positive and significant effect on the quality of financial reports. This study proves that professional scepticism moderates the effect of internal auditor competence and the effectiveness of internal control on the quality of financial reports. Therefore, for further researchers to be able to conduct an ethnographic study.

The Impact of Economic Policy Uncertainty on Executives’ Self-Interest Behaviors: Evidence from China

This paper empirically studies the impact of economic policy uncertainty on executives’ self-interest behaviors, distinguishes explicit self-interest behaviors from implicit ones, and studies the moderating effect of internal control. The results illustrate that rising policy uncertainty will inhibit explicit self-interest behaviors of executives, yet the implicit ones will be encouraged. Internal control can regulate the above effects. Further research proves that the above-mentioned impact is more significant in state-owned enterprises (SOEs). Stable institutional investors and sound market competition can play a certain role in governance. Our paper contributes to the literature on the impact of economic policy uncertainty on corporate governance.

Unveiling the "Veil" of information disclosure: Sustainability reporting "greenwashing" and "shared value".

With the increasing attention of the capital market to environmental, social and governance information, sustainability reporting has become an important carrier for stakeholders to gain insight into sustainability of companies. But the emerged "greenwashing" problem has also brought haze to the value creation of capital market. To study the consequences of the pseudo-social responsibility behavior of "greenwashing", this paper takes China's listed companies as the research sample to empirically examine the relationship between sustainability reporting "greenwashing" and "shared value" creation. It is found that the "greenwashing" behavior of corporate sustainability reporting significantly reduces the "shared value" creation, while the degree of sustainability information asymmetry and the quality of information disclosure play a partial mediation role between them. Further analysis shows that the more effective internal control of a company and the greater pressure of external media supervision, the more conducive to weaken the negative impact of "greenwashing" on "shared value" creation. This paper enriches the literature on the economic consequences of "greenwashing" in sustainability disclosure and the influencing factors of "shared value" creation, extends the research on information disclosure and "shared value" from financial information to non-financial information. The results call for the state to promote legislative work, formulate unified standards and compress the "greenwashing" gray space; Governments could implement mandatory disclosure, implement independent authentication and strengthen "greenwashing" social supervision; Companies should strengthen capacity building and improve the "greenwashing" governance mechanism with the help of digital empowerment.

Penilaian Sistem Informasi Akuntasi Siklus Penjualan Kamar di Hotel Garden Palace Surabaya

Accounting information system is one of the instruments used by companies to achieve company goals. A good information system is an information system that is supported entryway an effective internal control. The company's internal controls must be periodically reviewed to be effective. The Garden Palace Hotel already has a computerized accounting information system, but internal control is not effectively linked to access control activities. Increase the effectiveness of inside control with five COSO components. The results of the research were: climate control, especially hierarchical construction, did not work as expected. This affects the adequacy of internal controls in the cycle of credit transactions. Doubled posting bets and error values ​​were still reasonable and the control measure that susceptible was access control.

Pengaruh Bystander Effect, Ketaatan Aturan Akuntansi dan Efektivitas Pengendalian Internal Terhadap Kecenderungan Fraud Akuntansi Di Lembaga Perkreditan Desa (LPD) Se-Kecamatan Susut Kabupaten Bangli

This research is structured with the aim of analyzing what factors can influence the level of accounting fraud tendency in a company. In this study, several factors will be analyzed, namely the bystander effect, compliance with accounting rules and the effectiveness of internal controls. bystander effect, compliance with accounting rules and effectiveness of internal control. This study uses LPD employees as the research population where the number of samples is 75 people. This study uses multiple linear regression analysis techniques with the result that an increase in the bystander effect in the institution will actually lead to an increase in fraud. Compliance with accounting rules and the effectiveness of internal controls that are continuously improved are proven to be able to reduce the possibility of fraud in the organization. The advice given by the researcher is that the LPD in the Shrinking District is expected to always protect employees who dare to report fraud, besides that the LPD in the Shrinking District should give strict sanctions to employees who do not comply with accounting rules and the LPD in the Shrinking District is expected to implement internal control properly.