Internal Control, Love of Money, Individual Morality, and Information Asymmetry: Influences on Accounting Fraud Tendency
Abstract
The objective of this study is to examine the impact of internal control, individual morality, information asymmetry, and love of money on the propensity for accounting fraud at PT. Bali Regional Development Bank, Badung Branch Office. A sample of 44 respondents was selected using purposive sampling technique. The data analysis method employed is Partial Least Square (PLS), which includes bootstrapping, internal model evaluation, and external model evaluation. The findings demonstrate that internal control and individual morality negatively impact the propensity for accounting fraud. Conversely, love of money and information asymmetry positively influence this propensity.
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References
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Rajeswari, I., & Rasmini, N. (2022). Pengendalian Internal, Asimetri Informasi, Integritas, Dan Budaya Organisasi Pada Kecurangan Akuntansi. E-Jurnal Akuntansi, 32(6), 1492-1505. doi:10.24843/EJA.2022.v32.i06.p08
Sari, N. L. P. W. A., & Widanaputra, A. A. G. . (2019). Pengaruh Love of Money, Equity Sensitivity, dan Machiavellian Pada Persepsi Etis Mahasiswa Akuntansi. E-Jurnal Akuntansi, 28(2), 1522.
Setyaningsih, P. R., & Nengzih, N. (2020). Internal control, organizational culture, and quality of information accounting to prevent fraud: Case study from Indonesia’s agriculture industry. International Journal of Financial Research, 11(4), 316–328. https://doi.org/10.5430/ijfr.v11n4p316
Siahaan, A. M., Siboro, D. T., Sianipar, V. H., & Siboro, U. (2022). Impact of Individual Morality and Internal Control on Accounting Fraud Trends (Viewed From Literature Study). International Journal of Science and Management Studies (IJSMS) Vol, 5(1-6).
Sudarman, & Kusuma, S. Y. (2019). Individual morality to accounting fraud tendency at whole bmts in kudus. International Journal of Scientific and Technology Research, 8(12), 1889–1892.
Sudarman, Candrarin, G., & Asih, P. (2019). Internal control toward accounting fraud tendency at whole bmt. International Journal of Scientific and Technology Research, 8(11), 3230–3233.
Utami, I., Wijono, S., Noviyanti, S., & Mohamed, N. (2019). Fraud diamond, Machiavellianism and fraud intention. International Journal of Ethics and Systems, 35(4). https://doi.org/10.1108/IJOES-02-2019-0042
Vousinas, G. L. (2019). Advancing theory of fraud: the SCORE model. Journal of Financial Crime
Widnyana, I. W., & Widyawati, S. R. (2022). Role of forensic accounting in the diamond model relationship to detect the financial statement fraud. International Journal of Research in Business and Social Science (2147-4478), 11(6), 402-409.
Wiswantara, 1.B.G., & Wdianapura, A.A.G.P (2020). The Effect of Internal Control, Acounting Regulations Obedience, and Individual Morality in Acounting Fraud Tendency (Case Sutdy at Vilage Credit Institute for Gianyar District). International Journal of Management and Commerce Innovations, 8(1), 204-210.
Ayunda, A. E., & Helmayunita, N. (2022). Pengaruh Love of Money dan Sifat Machiavellian terhadap Kecenderungan Fraud Accounting dengan Gender sebagai Variabel Moderasi. Jurnal Eksplorasi Akuntansi, 4(1), 1–11. https://doi.org/10.24036/jea.v4i1.498
Chandrayatna, I. D. G. P., & Sari, M. M. R. (2019). Pengaruh pengendalian internal, moralitas individu dan budaya etis organisasi pada Accounting fraud tendency . E-Jurnal Akuntansi, 27(2), 1063-1093.
Deasri, Ni Kadek Dwita; Utama, I Made Karya. Pengendalian Internal, Komitmen Organisasi, Kesesuaian Kompensasi dan Accounting fraud tendency . E-Jurnal Akuntansi, [S.l.], v. 32, n. 8, p. 2105-2117, aug. 2022. ISSN 2302-8556
Fade, A. M. R., Basri, Y. M., & Safitri, D. (2022). Fraud on Government: Reviewed From Organizational Ethical Culture, Leadership Style, and Love of Money. Berkala Akuntansi Dan Keuangan Indonesia, 7(1), 113–139. https://doi.org/10.20473/baki.v7i1.32717
Fernandhytia, F., & Muslichah, M. (2020). The Effect of Internal Control, Individual Morality and Ethical Value on Accounting Fraud Tendency. Media Ekonomi Dan Manajemen, 35(1), 112. https://doi.org/10.24856/mem.v35i1.1343
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2017). Pearson New International Edition: Multivariat Data Analysis. Exploratory Data Analysis in Business and Economics. https://doi.org/10.1007/978-3- 319-01517-0_3
Handoko, B. L., & Natasya. (2019). Fraud diamond model for fraudulent financial statement detection. International Journal of Recent Technology and Engineering,8(3), 6865–6872. https://doi.org/10.35940/ijrte.C5838.098319
Kamil, A. H., & Hidayah, N. (2023). The Effect of Integrity and Effectiveness of Internal Control on Potential Accounting Fraud and Their Impact on Financial Accountability. Dinasti International Journal of Digital Business Management, Vol. 4, No. 1, December 2022, 4(1), 46–59.
Kase, M. S., & Babulu, N. L. (2023). The Effect of Love of Money and Intrinsic Religiosity on the Tendency of Village Fund Accounting Fraud. International Journal of Science and Society, 5(4), 393–403. https://doi.org/10.54783/ijsoc.v5i4.794
Komala, R., Piturungsih, E., & Firmansyah, M. (2019). Pengaruh Asimetri Informasi, Moralitas Individu Dan Pengendalian Internal Terhadap Accounting fraud tendency. E-Jurnal Akuntansi, 29(2), 645. https://doi.org/10.24843/eja.2019.v29.i02.p12
Khamimah, K., Aminah, S., & Saroh, U. (2021). The Effect of Internal Control, Appropriateness of Compensation and Information Asymmetry on Accounting Fraud Tendencies (Study at Cooperatives in Gajah Mungkur District, Semarang City). International Journal of Economics and Management Studies, 8(1), 126–130. https://doi.org/10.14445/23939125/ijems-v8i1p113
Kurniawan, F., & Purwati, A. S. (2021). The Influence of Internal Control, Compensation Suitability, Corporate Ethical Culture, Competency, Organizational Justice, Standard Enforcement, Asymmetric Information on Fraud Trends in Banking Article Information. International Journal of Accounting, Taxation, and Business, 2(1), 41–50. https://journal.unsika.ac.id/index.php/IJATB
Maggalatta, A. and Adhariani, D. (2020), "For love or money: investigating the love of money, Machiavellianism and accounting students' ethical perception", Journal of International Education in Business, Vol. 13 No. 2, pp. 203-220 https://doi.org/10.1108/JIEB-09-2019-0046
Nainggolan, E. P. (2023, September). Study on the Ethical Perceptions of Accounting Students: Evidence from Medan City. In Journal of International Conference Proceedings (Vol. 6, No. 3, pp. 169-185)
Nita, N. K. N., & Supadmi, N.L. (2019). Pengaruh Pengendalian Internal, Integritas, Asimetri Informasi dan Kapabilitas Pada Kecurangan Akuntansi. E-Jurnal Akuntansi, 28(3), 1819-1837. htps:/ojs.unud.ac.id/index.php/Akuntansi/index
Pratiwi, N. L. G. D. A., & Budiasih, I.G.A.N. (2020). Pengendalian Internal, Budaya Organisasi, dan Accounting fraud tendency di LPD Kabupaten Tabanan. E-Jurnal Akuntansi, 30(11). 1055-1070
Permas, I.B.M.S.I., Dwirandra, A.A.N.B., Surdikha, I.M.S., Gayatri. (2020). Catur Purusa Artha Moderates The Influence of Love of money on Accounting Fraud (Article). Institute of Advanced Scientific Research, Inc. Vol.12(7). 24-31
Rahimah, L. N., Murni, Y., & Lysandra, S. (2018). Pengaruh Penyajian Laporan Keuangan Desa, Lingkungan Pengendalian dan Moralitas Individu terhadap Pencegahan Fraud yang terjadi dalam Pengelolaan Alokasi Dana Desa (Studi Kasus di Desa Sukamantri, Desa Sukamanah, Desa Sukaresmi dan Desa Gunungjaya Kecamatan Cisaat Kabupaten Sukabumi). Jurnal Ilmiah Ilmu Ekonomi (Jurnal Akuntansi, Pajak dan Manajemen), 6(12), 139-154
Rajeswari, I., & Rasmini, N. (2022). Pengendalian Internal, Asimetri Informasi, Integritas, Dan Budaya Organisasi Pada Kecurangan Akuntansi. E-Jurnal Akuntansi, 32(6), 1492-1505. doi:10.24843/EJA.2022.v32.i06.p08
Sari, N. L. P. W. A., & Widanaputra, A. A. G. . (2019). Pengaruh Love of Money, Equity Sensitivity, dan Machiavellian Pada Persepsi Etis Mahasiswa Akuntansi. E-Jurnal Akuntansi, 28(2), 1522.
Setyaningsih, P. R., & Nengzih, N. (2020). Internal control, organizational culture, and quality of information accounting to prevent fraud: Case study from Indonesia’s agriculture industry. International Journal of Financial Research, 11(4), 316–328. https://doi.org/10.5430/ijfr.v11n4p316
Siahaan, A. M., Siboro, D. T., Sianipar, V. H., & Siboro, U. (2022). Impact of Individual Morality and Internal Control on Accounting Fraud Trends (Viewed From Literature Study). International Journal of Science and Management Studies (IJSMS) Vol, 5(1-6).
Sudarman, & Kusuma, S. Y. (2019). Individual morality to accounting fraud tendency at whole bmts in kudus. International Journal of Scientific and Technology Research, 8(12), 1889–1892.
Sudarman, Candrarin, G., & Asih, P. (2019). Internal control toward accounting fraud tendency at whole bmt. International Journal of Scientific and Technology Research, 8(11), 3230–3233.
Utami, I., Wijono, S., Noviyanti, S., & Mohamed, N. (2019). Fraud diamond, Machiavellianism and fraud intention. International Journal of Ethics and Systems, 35(4). https://doi.org/10.1108/IJOES-02-2019-0042
Vousinas, G. L. (2019). Advancing theory of fraud: the SCORE model. Journal of Financial Crime
Widnyana, I. W., & Widyawati, S. R. (2022). Role of forensic accounting in the diamond model relationship to detect the financial statement fraud. International Journal of Research in Business and Social Science (2147-4478), 11(6), 402-409.
Wiswantara, 1.B.G., & Wdianapura, A.A.G.P (2020). The Effect of Internal Control, Acounting Regulations Obedience, and Individual Morality in Acounting Fraud Tendency (Case Sutdy at Vilage Credit Institute for Gianyar District). International Journal of Management and Commerce Innovations, 8(1), 204-210.
Published
2024-06-28
How to Cite
MAHARDIKA, I Kadek Feri; WIDANAPUTRA, Anak Agung Gde Putu.
Internal Control, Love of Money, Individual Morality, and Information Asymmetry: Influences on Accounting Fraud Tendency.
E-Jurnal Akuntansi, [S.l.], v. 34, n. 6, june 2024.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/114141>. Date accessed: 21 nov. 2024.
doi: https://doi.org/10.24843/EJA.2024.v34.i06.p15.
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