Research Article
Analysis the Effectiveness Internal Control System and Management Morality on Tendency of Fraud in Accounting
@INPROCEEDINGS{10.4108/eai.28-9-2020.2307366, author={Delvia Vamela and Hari Setiyawati}, title={Analysis the Effectiveness Internal Control System and Management Morality on Tendency of Fraud in Accounting}, proceedings={Proceedings of the 1st MICOSS Mercu Buana International Conference on Social Sciences, MICOSS 2020, September 28-29, 2020, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={MICOSS}, year={2021}, month={5}, keywords={tendency of fraud in accounting effectiveness of the internal control system management morality}, doi={10.4108/eai.28-9-2020.2307366} }- Delvia Vamela
Hari Setiyawati
Year: 2021
Analysis the Effectiveness Internal Control System and Management Morality on Tendency of Fraud in Accounting
MICOSS
EAI
DOI: 10.4108/eai.28-9-2020.2307366
Abstract
This research begins with the phenomenon of fraud in accounting that has occurred in many countries, where fraud that occurred in Toshiba Corp (Japan) and SNP Finance (Indonesia) has tarnished credibility in accounting practices. This study aims to examine and analyze the significant influence of the effectiveness of the internal control system and the morality of accounting management on the tendency of fraud in accounting. This research is quantitative with a causal approach. The population of this research is the private sector companies in Jakarta and Tangerang. The sample of this research were 60 companies. Data were analyzed using the Second Order Confirmation Equation Model (SEM) structure with the Partial Least Square (PLS) approach. The results showed the effectiveness of the internal control system had no significant effect on the tendency of fraud in accounting. Conversely, Management Morality has a significant effect on the tendency of fraud in accounting.
