Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia

Research Article

Between Internal Control System and Information Asymmetry on Accounting Fraud

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  • @INPROCEEDINGS{10.4108/eai.13-8-2019.2294254,
        author={Ida Ayu Nyoman Yuliastuti and Daniel Raditya Tandio},
        title={Between Internal Control System and Information Asymmetry on Accounting Fraud},
        proceedings={Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICFF},
        year={2020},
        month={5},
        keywords={fraud unethical behavior internal control system information asymmetry},
        doi={10.4108/eai.13-8-2019.2294254}
    }
    
  • Ida Ayu Nyoman Yuliastuti
    Daniel Raditya Tandio
    Year: 2020
    Between Internal Control System and Information Asymmetry on Accounting Fraud
    ICFF
    EAI
    DOI: 10.4108/eai.13-8-2019.2294254
Ida Ayu Nyoman Yuliastuti1,*, Daniel Raditya Tandio1
  • 1: Mahasaraswati Denpasar University
*Contact email: ida.yuliastuti@unmas.ac.id

Abstract

LPD assets developments in Badung Regency is so fast, making these financial institutions susceptible to accounting fraud. Accounting fraud can be influenced by several factors such as the internal control system, information asymmetry and unethical behavior. Based on this, the purpose of this research was to determine the effect of the internal control system on accounting fraud and unethical behavior as a mediating variable and to determine the effect of information asymmetry on accounting fraud and unethical behavior as a mediating variable in LPD Badung. The sample in this study were all LPD in Badung Regency with 122 LPD. The analysis tool used is Partial Least Square (PLS). The results of this study prove that unethical behavior can provide full mediation between internal control system and accounting fraud. Other results also found, unethical behavior gives partial mediation between information asymmetry and accounting fraud.