Effect of internal audit, internal control, and audit quality on fraud prevention: Evidence from the public sector in Indonesia
Fraud prevention entails developing and implementing risk management strategies, particularly regarding fraud, and establishing internal controls and transparent corporate governance practices to eliminate fraudulent activities. This study aims to examine the effect of internal auditors, internal co...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2024-04-01
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| Series: | Problems and Perspectives in Management |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19884/PPM_2024_02_Lubis.pdf |
| _version_ | 1797221370698924032 |
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| author | Henny Zurika Lubis Maya Sari Andi Auliya Ramadhany Debbi Chyntia Ovami Istiqomah Rahmayati Brutu |
| author_facet | Henny Zurika Lubis Maya Sari Andi Auliya Ramadhany Debbi Chyntia Ovami Istiqomah Rahmayati Brutu |
| author_sort | Henny Zurika Lubis |
| collection | DOAJ |
| description | Fraud prevention entails developing and implementing risk management strategies, particularly regarding fraud, and establishing internal controls and transparent corporate governance practices to eliminate fraudulent activities. This study aims to examine the effect of internal auditors, internal control, and audit quality on preventing fraud at the Inspectorate of North Sumatra Province, Indonesia. The sample included 61 government internal auditors of the Inspectorate of North Sumatra Province, Indonesia. The data collection process was carried out by administering questionnaires using Google Forms. Additionally, this investigation assessed the constructs under scrutiny using a five-point Likert and the partial least square (PLS) approach. The results showed that internal audit has a positive and significant effect on fraud prevention (p < 0.05), internal control has a positive and significant effect on fraud prevention (p < 0.05), and audit quality has no effect on fraud prevention at the Inspectorate of North Sumatra Province, Indonesia (p > 0.05). The Inspectorate of North Sumatra Province, Indonesia, should conduct internal audits, implement an internal control system, and pay attention to the quality of audits to make them more effective as a basis for quality decision-making and fraud minimization. |
| first_indexed | 2024-04-24T13:04:22Z |
| format | Article |
| id | doaj.art-b40a14a591ca4c9ca2c7de9dc30c76cc |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-04-24T13:04:22Z |
| publishDate | 2024-04-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-b40a14a591ca4c9ca2c7de9dc30c76cc2024-04-05T08:47:26ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672024-04-01222405010.21511/ppm.22(2).2024.0419884Effect of internal audit, internal control, and audit quality on fraud prevention: Evidence from the public sector in IndonesiaHenny Zurika Lubis0https://orcid.org/0000-0002-0297-6985Maya Sari1https://orcid.org/0000-0001-6479-0011Andi Auliya Ramadhany2https://orcid.org/0009-0001-8635-7769Debbi Chyntia Ovami3https://orcid.org/0000-0001-9703-4781Istiqomah Rahmayati Brutu4Master, Senior Lecturer, Department of Accounting, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra], IndonesiaDr., Associate Professor, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra]Master, Senior Lecturer, Department of Accounting, Faculty of Economics and Business, Universitas Ibnu Sina [Ibn Sina University], IndonesiaDr., Senior Lecturer, Department of Accounting, Faculty of Economics and Business, Universitas Muslim Nusantara Al Washliyah [Al Washliyah Nusantara Muslim University], IndonesiaBachelor Student, Department of Accounting, Faculty of Economics and Business, Universitas Muhammadiyah Sumatera Utara [Muhammadiyah University of North Sumatra], IndonesiaFraud prevention entails developing and implementing risk management strategies, particularly regarding fraud, and establishing internal controls and transparent corporate governance practices to eliminate fraudulent activities. This study aims to examine the effect of internal auditors, internal control, and audit quality on preventing fraud at the Inspectorate of North Sumatra Province, Indonesia. The sample included 61 government internal auditors of the Inspectorate of North Sumatra Province, Indonesia. The data collection process was carried out by administering questionnaires using Google Forms. Additionally, this investigation assessed the constructs under scrutiny using a five-point Likert and the partial least square (PLS) approach. The results showed that internal audit has a positive and significant effect on fraud prevention (p < 0.05), internal control has a positive and significant effect on fraud prevention (p < 0.05), and audit quality has no effect on fraud prevention at the Inspectorate of North Sumatra Province, Indonesia (p > 0.05). The Inspectorate of North Sumatra Province, Indonesia, should conduct internal audits, implement an internal control system, and pay attention to the quality of audits to make them more effective as a basis for quality decision-making and fraud minimization.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19884/PPM_2024_02_Lubis.pdffraud preventionIndonesiainternal auditorSEM-PLS |
| spellingShingle | Henny Zurika Lubis Maya Sari Andi Auliya Ramadhany Debbi Chyntia Ovami Istiqomah Rahmayati Brutu Effect of internal audit, internal control, and audit quality on fraud prevention: Evidence from the public sector in Indonesia Problems and Perspectives in Management fraud prevention Indonesia internal auditor SEM-PLS |
| title | Effect of internal audit, internal control, and audit quality on fraud prevention: Evidence from the public sector in Indonesia |
| title_full | Effect of internal audit, internal control, and audit quality on fraud prevention: Evidence from the public sector in Indonesia |
| title_fullStr | Effect of internal audit, internal control, and audit quality on fraud prevention: Evidence from the public sector in Indonesia |
| title_full_unstemmed | Effect of internal audit, internal control, and audit quality on fraud prevention: Evidence from the public sector in Indonesia |
| title_short | Effect of internal audit, internal control, and audit quality on fraud prevention: Evidence from the public sector in Indonesia |
| title_sort | effect of internal audit internal control and audit quality on fraud prevention evidence from the public sector in indonesia |
| topic | fraud prevention Indonesia internal auditor SEM-PLS |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19884/PPM_2024_02_Lubis.pdf |
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