This research is motivated by the importance of accountability and transparency in zakat management by zakat institutions. Although the potential for zakat in Indonesia is quite large, the level of public trust and participation in distributing zakat through official institutions is not optimal. This is partly influenced by the quality of financial reports presented by zakat management institutions. BAZNAS Agam Regency, as the official institution tasked with collecting and distributing zakat funds, is required to prepare quality financial reports in accordance with applicable zakat accounting standards. Therefore, the implementation of zakat accounting and internal control systems are important factors in improving the quality of zakat management financial reports. This study aims to analyze the extent of the influence of the implementation of zakat accounting and internal control systems on the quality of zakat management financial reports at BAZNAS Agam Regency, both partially and simultaneously. This study uses a quantitative approach with a descriptive method. Data were obtained by distributing questionnaires to respondents related to zakat management at BAZNAS Agam Regency. The collected data were analyzed using multiple linear regression analysis techniques with the help of statistics to determine the effect of independent variables on the dependent variable. The results of the study indicate that the implementation of zakat accounting and internal control systems significantly influence the quality of zakat management financial reports. Simultaneously, both variables contribute to the quality of financial reports with an Adjusted R Square of 0.422 or 42.2%, while the remaining 57.8% is influenced by other variables not examined in this study. These findings indicate that the implementation of good zakat accounting and an effective internal control system can improve the quality of financial reports in zakat institutions.

Abstract. Fathurohman F, Ekowati T, Gayatri S, Adiwinarti R, Nurtanti I, Fajri NA, Mukminah N, Rahmawati R. 2026. Transformational leadership and field-level accountability in smallholder beef cattle development under environmental uncertainty. Asian J Agric 10 (1): g100143. https://doi.org/10.13057/asianjagric/g100143. Accountability within Indonesia’s smallholder beef cattle development program (SIKOMANDAN) is crucial for ensuring national meat security, yet program implementation frequently faces complex field-level challenges such as biological risks and resource instability. This study investigates the institutional determinants of program accountability, focusing on the direct effects of System Integrity (SI), Internal Control Systems (ICS), and Transformational Leadership (TL), alongside the moderating roles of Organizational Commitment (OC) and Environmental Uncertainty (EU). A quantitative survey was conducted using a purposive sampling technique in Subang District, West Java, Indonesia, involving 125 local government officials and agricultural extension workers. Empirical data were evaluated using Partial Least Squares Structural Equation Modelling (PLS-SEM) to test both direct and interaction effects. The results show that Transformational Leadership (β = 0.458, p < 0.001) and System Integrity (β = 0.392, p < 0.001) significantly enhance accountability, with the model explaining 76.4% of variance (R² = 0.764). In contrast, the Internal Control System has no significant direct effect (β = -0.017, p = 0.814). Organizational Commitment emerges as a significant independent predictor (β = 0.512, p < 0.001) rather than a moderator. Environmental Uncertainty shows no direct effect but indicates a borderline negative effect on internal controls (β = -0.135, p = 0.058). These findings highlight that accountability in livestock governance is driven more by leadership and system integrity than by formal control mechanisms alone. Strengthening adaptive governance through leadership development and flexible operational procedures is essential for program effectiveness in volatile agricultural contexts.

The Purpose: The study examines the impact of sustainable management control systems and sustainable management accounting systems on sustainable business performance and analyses whether strategic agility moderates these relationships. The research addresses the problem of how internal sustainability mechanisms influence long-term business outcomes in dynamic environments. Methods: The study uses a quantitative approach with data collected via questionnaires from publicly listed companies on the Indonesia Stock Exchange (IDX). The sample consists of 265 issuers listed on IDX, representing various sectors with an emphasis on organisational practices related to sustainability and performance. The researchers employed structural equation modelling using the Statistical Package for the Social Sciences (SPSS) Analysis of Moment Structures (AMOS) 22 to test the hypotheses, along with sensitivity and expansion tests. The results indicate that both sustainable management control systems and sustainable management accounting systems significantly enhance sustainable business performance. However, strategic agility does not moderate these relationships. Limitations: The findings are limited to IDX-listed companies and thus may not be generalisable to non-listed firms. The study also did not account for the adoption of specific international sustainability standards, limiting insights into innovation-driven sustainability practices. Contribution: This study contributes to the literature by integrating strategic agility into the sustainability-performance framework and highlighting the roles of internal control and accounting systems. It offers empirical evidence from an emerging market context, emphasising structural over strategic drivers of sustainable business performance.

Public services are a fundamental element in the implementation of government that is oriented towards fulfilling the basic needs of the community and the realization of the principle of good governance. However, the quality of public services in Indonesia still faces various problems, especially due to rampant maladministration, which results in public losses and reduces trust in public institutions. This study aims to analyze the effectiveness of internal government supervision and the role of the Ombudsman of the Republic of Indonesia in preventing maladministration, with an emphasis on regulatory aspects, the implementation of supervision, and institutional barriers. The research uses a descriptive qualitative method, drawing on a literature review of laws and regulations, APIP reports, and the results of the Ombudsman's examination. The results of the study show that the government's internal supervision plays a strategic role in ensuring the implementation of public services in accordance with the principles of AUPB and the service standards stipulated in Law No. 25 of 2009. However, the effectiveness of supervision remains constrained by the Ombudsman's limited authority, the lack of clarity in service standards, and the weak implementation of the government's internal control system (SPIP). These findings affirm the importance of strengthening APIP's independence, improving the Ombudsman's technical regulations, improving the competence of the apparatus, and the existence of political will from all stakeholders. Thus, efforts to prevent maladministration not only require strong regulatory tools but also consistent implementation to realize transparent, accountable, and fair public services.

The study provides a comprehensive assessment of contamination levels of deoxynivalenol (DON) and zearalenone (ZEA) in common wheat (Triticum aestivum L.) samples of Ukrainian origin collected over five marketing seasons in 2020–2025. A total of 1250 samples were drawn in accordance with GAFTA No. 124 and ISO 24333:2009 standards. Quantitative analysis was performed using high-performance liquid chromatography coupled with tandem mass spectrometry (LC-MS/MS) with isotope-labeled standards. Laboratory testing was carried out by an accredited testing center in accordance with DSTU EN ISO/IEC 17025:2019 and EU Regulation 2023/2782. The results indicate that the overall contamination level generally complies with the requirements of Commission Regulation (EU) 2023/915 and Commission Recommendation 2006/576/EC. The frequency of exceedance of the maximum permissible level for DON (1000 ?g/kg) was 1.2%, with the highest rate recorded in the 2021–2022 marketing year (6.43%). For ZEA, exceedances of 100 ?g/kg were detected in 0.72% of the samples. It was established that the risk of DON contamination is higher than that of ZEA, although in both cases the vast majority of the samples analyzed remained within permissible limits. Seasonal variability in contamination levels was observed, likely associated with agrometeorological conditions. The obtained results are of practical importance for grain exporters, quality control laboratories, market operators, and grain-processing enterprises, as they may be used to forecast mycotoxicological risks, improve internal control systems, and ensure consistent compliance with international trade requirements. The findings confirm that Ukrainian common wheat is generally safe with respect to the toxins concerned; however, periodic exceedances highlight the need for continuous monitoring and risk management.

The delay in preparing the RKA is due to the long bureaucratic process and suboptimal coordination between departments, Internal control is not optimal, so there is still the potential for recording errors, budgeting that is not on target, to the risk of discrepancies in financial reports, the use of information technology to support the integration of SAP with an effective RKA system is not optimal. The research method used is a descriptive method. The results of the study state that the Implementation of Government Accounting Standards (SAP) at the Faculty of Dentistry USU has been running quite well and has a positive influence on the effectiveness of the RKA internal control system. SAP helps strengthen transparency, accountability, and efficiency in the preparation and implementation of the faculty budget. The effectiveness of SAP implementation is still hampered by human resource factors, limitations of the financial information system, and the lack of periodic evaluation of the implementation of internal control. To improve the effectiveness of internal control, continuous training, integration of digital financial systems, and the commitment of faculty leaders in the comprehensive implementation of SAP are needed. Strengthening SAP and SPI, the Faculty of Dentistry USU can realize better, transparent, and accountable financial governance in accordance with the principles of good university governance.

Indonesia faces multidimensional challenges in escaping the middle-income trap and attaining high-income status by 2045. Although economic growth has been relatively stable (averaging 4.9% from 2000 to 2022), poverty reduction has plateaued at around 10%, indicating that growth has not been sufficiently inclusive. In parallel, Indonesia—home to the world’s largest Muslim population and ranked first in the 2021 World Giving Index—has substantial potential to scale Islamic Social Finance (ISF).Using a Systematic Literature Review (SLR), this article critically examines the strategic role of key ISF instruments—zakat, infaq/sadaqah, and waqf—in poverty alleviation, inequality reduction, and inclusive development in Indonesia, with particular emphasis on the accounting dimensions of recognition, measurement, reporting, and accountability. The review indicates that the estimated national zakat potential of IDR 327 trillion could finance up to 76% of the government’s social protection budget. In addition, cash waqf provides a sustainable social investment model that can support long-term funding for education, health, and MSME empowerment. However, ISF optimization remains constrained by low literacy, fragmented governance, limited transparency, and weak policy integration—issues that are closely linked to the quality of financial reporting, disclosure practices, internal control systems, audit/assurance, and governance mechanisms within ISF institutions. This study concludes that ISF should be positioned not merely as philanthropy, but as an accountable, measurable socio-economic instrument that complements public fiscal policy, strengthens the social protection architecture, and supports the achievement of an equitable “Golden Indonesia 2045.”

This article examines the modernization of internal control systems within Brazilian public administration, emphasizing the need to overcome the historically fragmented and reactive approach to this function. Grounded in international frameworks such as COSO and the Three Lines Model of the Institute of Internal Auditors (IIA), the study proposes a systemic, integrated, and risk-oriented approach. It highlights conceptual challenges embedded in current legislation, such as Law No. 14,133/2021, and the need for a shift in organizational culture. Additionally, it presents concrete opportunities for improvement, including inter-unit integration, the adoption of technology, and best practices implemented by institutions such as CGU, TCU, and TCE/PA. The central proposal is to transform internal control into a strategic tool for governance and the creation of public value.

Formulation of the problem. This study examines how modern technologies have been integrated into internal control systems in Azerbaijan between 2020 and 2025, focusing on financial institutions, large enterprises, and the public sector. The purpose of the study. The purpose of the study is to comprehensively analyze the current state of internal control systems in Azerbaijan and substantiate ways to improve them through the introduction of modern technologies to increase the efficiency of corporate governance and financial transparency. The object of the study is the organizational, methodological and technological aspects of strengthening internal control systems through the implementation of modern digital technologies and innovative monitoring tools. Research methods. Using a descriptive-analytical methodology based on secondary data, regulatory documents, corporate reports, and international assessments, the paper evaluates the extent to which digitalization, automation, data analytics, and continuous control mechanisms have strengthened internal control effectiveness. The main hypothesis. The introduction of modern digital technologies (including automation systems, data analytics, artificial intelligence, and blockchain) into the internal control systems of Azerbaijani organizations will significantly increase their efficiency, reduce operational risks, improve the detection of financial violations, and ensure greater transparency of business processes, which will contribute to the overall strengthening of corporate governance in the country. Present of the main material. The findings indicate substantial progress in technology-enabled controls parallel to Azerbaijan’s rapid advancement in e-government and enterprise digitalisation. The introduction of risk-based regulatory frameworks, expanded use of ERP systems, automated transaction monitoring, and data analytics within internal audit functions has contributed to higher reliability of financial reporting, enhanced operational discipline, and improved compliance culture. However, the level of technology adoption is heterogeneous: leading banks and state-owned enterprises are significantly ahead of SMEs and some budget-funded entities. Originality and practical significance. The paper proposes a Composite Digital Control Readiness Index to quantify developments over 2020–2025 and presents indicative statistics and diagram-ready datasets demonstrating positive trends. Conclusions and prospects for further research. The results suggest that sustained investment in digital infrastructure, unified standards based on COSO principles, capacity building, integration of AI-supported tools, and more consistent implementation among smaller entities are critical for consolidating these gains. The study contributes context-specific evidence for Azerbaijan and offers a practical framework for aligning technological transformation with robust internal control architectures.

The quality of local government financial reports reflects the accountability of public financial management. However, the quality of financial reporting in Indonesia is still not optimal, as indicated by the Local Financial Management Index (IPKD) and audit findings issued by the Supreme Audit Agency (BPK), especially in Rokan Hilir Regency. This condition shows the need to identify key factors that affect the quality of local government financial reports. This study aims to test and prove the influence of human resource competence, internal control systems, follow-up on BPK audit results, and the utilization of information technology on the quality of financial reports. This study uses a quantitative approach. The population in this study was all regional apparatus organizations (OPD) in Rokan Hilir Regency. The sampling technique used was purposive sampling, resulting in 26 OPDs as research samples with a total of 78 respondents. The type of data used was primary data obtained through the distribution of questionnaires to respondents. The collected data was then analyzed using SmartPLS software version 4.1.1.4. The results showed that human resource competence, internal control systems, follow-up on BPK audit results, and the utilization of information technology had an effect on the quality of financial reports. This study concluded that internal organizational factors and technological support played an important role in improving the quality of local government financial reports, particularly in OPDs in Rokan Hilir Regency.

The success of every organisation depends on her financial capacity, which plays a fundamental role in production. In recent time, poor financial capacity among industries in the Nigerian productive sector has resulted into poor internal Control policies. This study investigated the impact of internal control and financial performance on small and medium scale enterprises in Kebbi State, Nigeria. A descriptive survey design research was adopted. The estimated workers’ population of all respondents selected as of 2025 were 2,200 which consist of CEO’s, Managers, and Internal control units of the various SMEs in Kebbi State, Nigeria. A total of 338 respondents were sampled for the study using simple random sampling technique. A self-designed questionnaire was administered. The Pearson Product Moment Correlation Coefficient Analysis was employed to test the five hypotheses with a two-tailed test of significance at P<0.01 level. The results revealed that there is a significant relationship between individual internal control components and financial performance of small and medium enterprises in Kebbi state Nigeria. There also exists combined relationship between the internal control components (control environment, risk assessment, control activities, monitoring, information, and communication) and financial performance of small and medium enterprises in Kebbi state NNigeria. The study recommends regular and timely financial audits to help SMEs detect any gaps in their financial systems and financial performance. The management of the SME should conduct an annual evaluation of the financial reporting process and implement an internal audit system that permits monitoring of operational efficiency. The study also suggests that a frequent risk assessment be conducted so that SME management may determine whether or not their goals will be reached. In addition to implementing proper controls in the custody and disposal of assets, the management of a small to medium-scale enterprise (SME) should consider; control activities and information, and communication in order to improve financial performance.

Transformation of The Digital revolution has brought about a significant change in the working of financial institutions, especially those who perform intensive fintech work related to IT technologies and are heavily dependent on digital technologies as their medium of service delivery and financial reporting. However, in spite of the rapid increase in the development of fintech in Nigeria, there are worries about the effectiveness of internal control systems on ensuring compliance and reliable financial reporting in the digital oriented environments. This study examined the relationship between digital transformation and internal control effectiveness in the fintech intense firms in Nigeria. Specifically, the study examined the psychological and demographic factors of digital strategy and leadership support; process digitalization; and digital skills or digital culture on compliance and reliability in reporting. The study was based on technology acceptance model, resource-based view theory and institutional theory. A cross-sectional research design was adopted and the research philosophy that directed this study was the positivist research philosophy. The population of the study consisted of 390 employees and managerial personnels of fintech intensive firms in Nigeria of which, a sample size of 378 respondents was selected using purposive sampling techniques. Primary data were obtained on the basis of a structured questionnaire prepared on a Likert scale. The data were analyzed in using descriptive statistics and rank correlation coefficient of spearman at level 0.01. The results showed that digital strategy and leadership support, process digitalization and digital skills or culture all have positive and significant relationships with compliance and reporting trustworthiness. The study concluded that digital transformation facilitates the effectiveness of the internal control system in fintech-intensive institutions. Based on the findings, the study recommends that fintech firms improve leadership commitment to digital initiatives, invest in process automation, and build the digital competency of employees to improve compliance and reliability of reporting. The study adds to the knowledge by presenting empirical evidence on the role of digital transformation in enhancing the effectiveness of internal control in the fintech-intensive firms in Nigeria.

The current study investigates the impact of internal control systems & audit technology on business performance and financial transparency in the United Kingdom’s retail sector. In an increasingly competitive and regulated environment, retail organizations must adopt effective auditing practices to ensure accuracy, compliance & operational efficiency. This study specifically examines how audit managers’ expertise and decision-making mediate the relationship amid audit practices & organizational outcomes. A quantitative research design was employed, primary data collected through structured questionnaires distributed among employees working in retail organizations across UK. A total of 300 valid responses were obtained using a convenience sampling technique. The statistical analysis was conducted to evaluate the relationships between variables and to test mediating effect of audit expertise. The findings reveal that internal control systems and use of audit technology both have significant positive impact on business performance and financial transparency. Organizations with strong internal controls and advanced technological tools are better equipped to detect the errors, prevent fraud, and enhance reporting accuracy. Furthermore, the study highlights that audit expertise plays a crucial mediating role, as skilled audit managers strengthen the effectiveness of these systems through the informed decision-making and professional judgment.

This study examines the impact of applying Zero-Based Budgeting on the quality of internal control in economic units, with an applied focus on Iraqi banks The research aims to determine whether adopting Zero-Based Budgeting contributes to enhancing efficiency transparency, and accountability within internal control systems The study is based on the premise that traditional budgeting methods often rely on incremental adjustments which may overlook inefficiencies, whereas Zero-Based Budgeting requires justification of all expenses from a zero base, thereby strengthening oversight and resource allocation. To achieve the objectives of the study a descriptive analytical approach was adopted supported by an applied field study conducted on a sample of employees working in Iraqi banks Data were collected using a structured questionnaire designed to measure the degree of Zero-Based Budgeting implementation and its influence on internal control components including control environment risk assessment control activities information and communication, and monitoring Statistical tools were employed to analyze the data and test the study hypotheses. The results indicated a statistically significant positive relationship between the application of Zero-Based Budgeting and the improvement of internal control quality The findings showed that Zero-Based Budgeting enhances financial discipline, reduces unnecessary expenditures supports better decision making and improves monitoring procedures. Additionally the application of ZBB was found to strengthen risk assessment practices and increase the effectiveness of control activities within Iraqi banks. The study concludes that adopting Zero-Based Budgeting plays an important role in improving internal control quality in economic units It recommends that Iraqi banks expand the use of Zero-Based Budgeting provide training programs for employees and integrate modern technological tools to support budgeting and control processes These steps are expected to enhance financial performance and strengthen governance frameworks within the banking sector.

[Purpose] This study investigates the impact of ESG activities on earnings management,distinguishing between discretionary accruals and real earnings management. Utilizing ESGdata from Sustinvest, which emphasizes financial materiality, we examine whether theindividual components of ESG—Environmental (E), Social (S), and Governance (G)—exertdifferential effects on managerial incentives for earnings management. [Methodology] Using a sample of 4,565 firm－year observations listed on the KOSPI andKOSDAQ markets from 2014 to 2023, we employ the modified Jones model and Roychowdhury’smodel to proxy for discretionary accruals and real earnings management, respectively. [Findings] The empirical results show that the aggregate ESG score is generally significantlyand negatively associated with both discretionary accruals and real earnings management. However, the analysis of disaggregated components reveals that the Governance (G) dimensionconsistently constrains major real earnings management measures, serving as a key mechanismfor constraining real activity manipulation. In contrast, the Environmental (E) score exhibits adual effect：it shows no significant association with discretionary accruals, but is generallysignificantly and positively associated with real earnings management. This suggests that resourcecommitments required for environmental performance may exacerbate financial constraints,thereby increasing managerial incentives to engage in real earnings management through costcuttingmeasures such as the reduction of discretionary expenses and overproduction. [Implications] This study validates the importance of selecting ESG data based on financialmateriality. The findings imply that strengthening corporate governance is a prerequisite for enhancing accounting transparency. Furthermore, by documenting the trade－off betweenenvironmental performance and real earnings management, this study highlights the need forinvestors to exercise selective monitoring and for management to strengthen internal controlsystems to prevent the distortion of real activities.

Purpose: The paper aims to provide an overview of the current state-of-the-art research regarding the impact of system of internal control on fraud deterrence, primarily analyzing whether and how digital technologies can enhance components of this system, focusing on control activities, for better prevention and detection of financial statement fraud. Methodology/approach: A literature review and a thematic analysis of the most recent scientific and professional studies related to anti-fraud technologies, systems of internal control and financial statement fraud are conducted. Findings: The literature review revealed that the most prominent research avenues in the field are related to applying the fraud diamond model and identifying common red flags, tools, and techniques for financial statement fraud prevention and detection, as well as investigating the impact of digital business transformation and the adoption of digital technologies on a company’s system of internal control as an anti-fraud mechanism. Research limitations/implications: The limitations of the study relate to the literature review design and the focus on secondary sources. Therefore, future studies should aim to conduct primary research to provide confirmation of or new research outlets for existing assumptions on this topic. Originality/value: This paper contributes to enhancing existing theoretical and practical state-of-the-art knowledge regarding the usefulness of technologies for transforming systems of internal control as the primary tools of corporate anti-fraud programs in the contemporary digital era.

Purpose This study aims to investigate the effect of digital transformation on accounting conservatism, emphasizing the moderating role of industry type in an emerging market context. Focusing on Egypt, it examines whether differences in sectoral digital maturity shape how technological adoption influences conservative financial reporting practices, thereby highlighting the importance of institutional and operational heterogeneity across industries. Design/methodology/approach Drawing on signaling theory, agency theory and the resource-based view, the study employs a quantitative research design using panel data from non-financial firms listed on the Egyptian Exchange (EGX) over the period 2019–2023. The empirical analysis relies on multivariate regression models to test the direct effect of digital transformation and its interaction with industry characteristics. To address potential endogeneity concerns, the study applies two-step System GMM estimations, ensuring robust and reliable inferences. Findings The results indicate that digital transformation is positively associated with accounting conservatism. This relationship is significantly stronger in industries characterized by higher levels of digital maturity, suggesting that sectoral readiness conditions the extent to which firms can translate digital investments into improved governance outcomes. Overall, industry digital maturity amplifies the conservatism-enhancing effect of digital transformation. Practical implications The findings suggest that managers can strengthen conservative reporting and internal control systems through targeted digital investments. Regulators and auditors should account for industry-specific digital maturity when evaluating reporting quality and disclosure risk. Firms in technology-intensive sectors may gain particular benefits from prioritizing advanced digital capabilities aligned with governance objectives. Social implications By enhancing transparency and reducing information asymmetry, digital transformation supports accountability and investor confidence, which is especially critical in emerging markets with developing institutional frameworks. Originality/value This study contributes to the accounting literature by introducing industry type as a moderating factor in the digital transformation–conservatism nexus and by employing advanced GMM techniques. It offers context-sensitive evidence from Egypt and extends conservatism research through the use of digitalization measures derived from content analysis.

Internal audit is an integral part of modern corporate governance systems and plays a crucial role in evaluating and improving the effectiveness of an organization’s internal control mechanisms. Internal audit is considered an independent function within an enterprise, aimed at enhancing management processes, optimizing resource utilization, and reducing risks. This study analyzes the content of the internal audit system, its functions, its role in improving managerial reporting, and its significance in economic decision-making. The article examines the interrelationship between internal audit and the internal control system, highlighting their importance in ensuring the sustainable development of an organization. The study identifies the main functions and responsibilities of internal auditors and proposes mechanisms for effective organization of internal audit in the context of Kazakhstani enterprises. In addition, factors affecting the effectiveness of the internal control system and ways to improve it are analyzed. The authors emphasize the need to develop the methodological and informational base of internal audit to enhance the quality of managerial reporting. Internal audit ensures the accuracy, timeliness, and relevance of managerial reports, providing company management with reliable information for strategic decision-making. This, in turn, strengthens the financial stability of the organization and improves its overall efficiency. The study results identify modern directions for improving managerial reporting, including the implementation of digital technologies, the use of risk-based audit methods, and the advantages of automating internal audit functions. Enhancing internal audit enables organizations to increase transparency, flexibility, and the ability to implement long-term development strategies.

This study aims to examine fraud prevention in Indonesian government institutions by analyzing the influence of internal control systems and integrity zones, as well as the moderating role of transformational leadership. The population consists of civil servants working in a central government ministry that has implemented integrity zone initiatives. Using purposive sampling, 375 valid responses were obtained from employees involved in financial management, supervision, and administrative functions. A quantitative approach was applied through structured questionnaires, and data were analyzed using variance-based structural equation modeling. The results indicate that internal control systems have a positive and significant effect on fraud prevention by enhancing transparency and accountability. Integrity zones also demonstrate a significant positive influence by strengthening governance and promoting anti-corruption values. Transformational leadership does not significantly moderate the relationships between internal control systems, integrity zones, and fraud prevention. These findings suggest that fraud prevention in government institutions is more strongly associated with formal governance mechanisms, highlighting the importance of strengthening internal controls and integrity-based reforms to enhance anti-fraud effectiveness.

Accountable and transparent village fund management is a primary pillar of good village governance; however, its practice is often hindered by weak supervision systems and limited access to public information. This study aims to evaluate the effectiveness of the Internal Control System (ICS), transparency, and accountability in managing Village Funds in Pulutan Utara Village. Employing a descriptive qualitative method with a case study approach, data were collected through in-depth interviews and observations involving village officials and the community. The results indicate that the ICS has operated effectively structurally and administratively based on the five elements of the Government Internal Control System; yet, its function as social control remains suboptimal due to a lack of community involvement. Fund management accountability has performed well vertically towards the local government, but horizontal accountability to the community is still highly limited. Similarly, transparency functions adequately in a formal sense through village deliberations, but sustainable information accessibility remains weak due to the minimal use of written and digital media. This study implies that the fulfillment of administrative (vertical) obligations must be balanced with innovations in public information disclosure to realize substantive community participation in preventing potential deviations.