Fraud Prevention: The Contribution of Internal Control, Internal Audit, and Organizational Culture
DOI:
https://doi.org/10.35877/454RI.qems4118Keywords:
Fraud Prevention, Internal Audit, Internal Control, Organizational CultureAbstract
Losses within organizations often stem from fraudulent activities, with fraud levels significantly increasing, particularly in the public sector. This study aims to examine the contributions of internal control, internal audit, and organizational culture to fraud prevention efforts at the Regional Inspectorate Office of Central Sulawesi Province. A numerical analysis using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) approach was applied to 35 auditors as respondents. The findings indicate that internal control and internal audit do not significantly contribute to fraud prevention efforts. However, organizational culture plays a substantial role in preventing fraud. These results suggest the necessity of enhancing understanding regarding the implementation of organizational culture in fraud prevention, both in public and private institutions. Nevertheless, despite their lack of statistical significance, internal control and internal audit remain inseparable components in the broader effort to prevent fraud and organizational losses. Therefore, institutions must reinforce each audit-related element to mitigate the risks of fraud. In conclusion, the study underscores that organizational culture is the most crucial factor in preventing fraud. Thus, strengthening values such as integrity, transparency, and accountability must be prioritized in any anti-fraud strategy.
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Fachruroji, A., A. (2020). Pengaruh Audit Internal Terhadap Pencegahan Kecurangan Dalam Laporan Keuangan. Jurnal Akuntansi UMMI, 1(1), 26?36.
Febriantini, A. A., Warongan, J. D. L., & Datu, C. (2024). Analysis of the Role of Government Internal Supervisory Apparatus (APIP) in the Prevention and Detection of BOS Fund Fraud (Case Study of the Regional Inspectorate of North Sulawesi Province). Formosa Journal of Multidisciplinary Research, 3(9), 3467–3490. https://doi.org/10.55927/fjmr.v3i9.11347
Fitri, A., & Suryadi, N. (2024). Pengaruh Pengendalian Internal, Audit Internal, Dan Budaya Organisasi Terhadap Pencegahan Kecurangan (Studi Empiris Pada Inspektorat Kabupaten Kampar). Jurnal Akuntansi Kompetetif, 7(2), 275-281.
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Henseler, J., & Schuberth, F. (2020). Using confirmatory composite analysis to assess emergent variables in business research. Journal of Business Research, 120, 147–156. https://doi.org/10.1016/j.jbusres.2020.07.026
Jerab, D. A., & Mabrouk, T. (2023). The Role of Leadership in Changing Organizational Culture. SSRN Electronic Journal, 1-14. https://doi.org/10.2139/ssrn.4574324
Manopo, S. M. (2021). PENGARUH AUDIT INTERNAL, EFEKTIVITAS PENGENDALIAN INTERN, SKEPTISME DAN INDEPENDENSI TERHADAP PENCEGAHAN (FRAUD). (Studi Empiris pada SKPD Inspektorat Kotamabagu Tahun 2020). Doctoral Dissertation, Universitas Islam Indonesia.
Muwahhidin, & Ansar, M. (2025). The Paradox of Love of Money and Ethical Culture: Seeking New Insights into Fraud Prevention at The Village Level. Economics, Business, Accounting & Society Review, 3(3), 170–181. https://doi.org/10.55980/ebasr.v3i3.158
Paranoan, S., Herawati, T., Yanuarisa, Y., Kantohe, M. S. S., Usman, E., Priliandani, N. M. I., Handayani, M., Yamin, N. Y., Martiningsih, R. S. P., Arif, M., Sugianto, Umar, R., & Bulutoding, L. (2022). Akuntabilitas kinerja sektor publik. Media Sains Indonesia.
Cahyani,R. M., Aristanti, I. A. P. M. P., Susandya, A. A. P. G. B. A. A., Putra, M. D. P., & Bagiana, I K. (2022). The Effect Of Competence, Morality, Integrity, Internal Control, And Organizational Culture On Fraud Prevention With Whistleblowing System As Moderating Variables. Jurnal Mantik, 6(3), 3245–3256.
Nugroho, D. H., & Afifi, Z. (2022). PENGARUH PENGENDALIAN INTERNAL DAN GOOD CORPORATE GOVERNANCE TERHADAP PENCEGAHAN FRAUD. Yudishtira Journal?: Indonesian Journal of Finance and Strategy Inside, 2(3), 301–316. https://doi.org/10.53363/yud.v2i3.42
Peraturan Badan Pemeriksa Keuangan Republik Indonesia Nomor 1 Tahun 2017. Tentang Standar Pemeriksaan Keuangan Negara.
Peraturan Pemerintah Republik Indonesia Nomor 60 Tahun 2008 Tentang Sistem Pengendalian Intern Pemerintah.
Handoyo, B. R. M., & Bayunitri, B., I. (2021). The influence of internal audit and internal control toward fraud prevention. International Journal of Financial, Accounting, and Management, 3(1), 45–64. https://doi.org/10.35912/ijfam.v3i1.181
Redding, Kurt, F, Paul J. Sobel, & Michael J. Head. (2013). Internal auditing: assurance & advisory services. Third Edition. Unites Stated Of America: The Institute of internal auditors research foundation (IIAFR).
Sarstedt, M., Hair, J. F., Pick, M., Liengaard, B. D., Radomir, L., & Ringle, C. M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology and Marketing, 39(5), 1035–1064. https://doi.org/10.1002/mar.21640
Shmueli, G. , R. S. , V. E. J. M. , & C. S. B. (2021). Predicting social media performance metrics and evaluation of the impact on brand building: A data mining approach. Journal of Business Research, 69(9), 4552–4564.
Soehaditama, J. P. (2024). The Influence of Organizational Culture and the Role of Internal Audit on Fraud Prevention. Dinasti International Journal Of Economics, Finance & Accounting (DIJEFA). 4(6), 738?743. https://doi.org/10.38035/dijefa.v4i6
Albretch, W.S., Albretch, C.O., Albretch, C.C., Zimbelman, M.F. (2012). Fraud Examination. (Edisi ke-4). Cengange Learning. E-Book.
Sudharma, F. Z., Haliah, & Nirwana. (2023). The Effect of Organizational Culture, the Role of Internal Auditor and Auditor Integrity on Fraud Prevention. International Journal of Business and Applied Economics, 2(5), 831–850. https://doi.org/10.55927/ijbae.v2i5.6221
ACFE. (2024). Occupational Fraud 2024: A Report to the Nations. Association of Certified Fraud Examiners, 1-106.
Vousinas, G. L. (2019). Advancing theory of fraud: the S.C.O.R.E. model. Journal of Financial Crime, 26(1), 372–381. https://doi.org/10.1108/JFC-12-2017-0128
ANTARA News Palu. (2023, 13 September). KPK temukan sebanyak 958 kasus gratifikasi di daerah. Antara NewsPalu, Sulawesi Tengah.
https://www.antarnews.com/berita/3724542/kpk-temukan-958-kasus-gratifikasi-di-daerah. Diakses 2 November 2024.
Afthanorhan, A., Awang, Z., & Aimran, N. (2020). An extensive comparison of cb-sem and pls-sem for reliability and validity. International Journal of Data and Network Science, 4(4), 357–364. https://doi.org/10.5267/j.ijdns.2020.9.003
Antara News Sulteng. (2025, 1 Februari). Disdik Sulteng nonaktifkan Kepsek SMKN 2 Palu akibat dugaan pungli. https://sulteng.antaranews.com/berita/339285/disdik-sulteng-nonaktifkan-kepsek-smkn-2-palu-akibat-dugaan-pungli. Diakses 13 Juni 2025
CNN Indonesia. (2025, 3 Februari). Disdik minta Inspektorat cek dugaan pungli di SMKN 2 Palu. https://www.cnnindonesia.com/nasional/20250203061718-20-1193784/disdik-minta-inspektorat-cek-dugaan-pungli-di-smkn-2-palu. Diakses 13 Juni 2025
Kompas.com. (2025, 31 Januari). Siswi di Palu nyaris dikeluarkan gegara lapor pungli, Inspektorat Sulteng turun tangan. https://www.kompas.com/tren/read/2025/01/31/160000365/siswi-di-palu-nyaris-dikeluarkan-gegara-lapor-pungli-inspektorat-sulteng. Diakses 13 Juni 2025
Bernas.id. (2025, 2 Februari). Inspektorat Sulteng tegaskan pencanangan ZI amanat undang-undang cegah korupsi. https://www.bernas.id/2025/02/216904/inspektorat-sulteng-tegaskan-pencanangan-zi-amanat-undang-undang-cegah-korupsi/. Diakses 13 Juni 2025
Hantono, S. (9 Agustus 2023). Waduh, masih ada gratifikasi di OPD Pemprov Sulawesi Tengah menurut survei KPK tahun 2022. Kabar Palu.
https://www.kabarpalu.net/daerah/1062444854/waduh-masih-ada-gratifikasi-di-opd-pemprov-sulawesi-tengah-menurut-survei-kpk-tahun-2022. Diakses 2 November 2024.
Megawati, A., & Reskino, R. (2023). PENGARUH PENGENDALIAN INTERNAL, WHISTLEBLOWING SYSTEM, DAN KOMITMEN ORGANISASI TERHADAP PENCEGAHAN KECURANGAN DENGAN MORALITAS INDIVIDU SEBAGAI VARIABEL MODERASI. Jurnal Akuntansi Trisakti, 10(1), 31–50. https://doi.org/10.25105/jat.v10i1.15818
Anlilua, P., & Rusmita, S. (2023). PENGARUH WHISTLEBLOWING SYSTEM, SISTEM PENGENDALIAN INTERNAL, DAN BUDAYA ORGANISASI TERHADAP PENCEGAHAN FRAUD. In Jurnal Kajian Ilmiah Akuntansi Fakultas Ekonomi UNTAN (KIAFE), 1(3), 34-48.
Bangun, D. F. B., Hulu, Y. Y. H., Laia, M., Handayani, P., Rezeki, S. I., Pangga, I. D., & Aliah, N. (2024). Peran Audit Internal Dalam Upaya Pencegahan Fraud. Jurnal Bisnis Mahasiswa, 4(1), 88–97. https://doi.org/10.60036/jbm.v4i1.art10
Cheung, G. W., Cooper-Thomas, H. D., Lau, R. S., & Wang, L. C. (2024). Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations. Asia Pacific Journal of Management, 41(2), 745–783. https://doi.org/10.1007/s10490-023-09871-y
Transparency International. (2024). CORRUPTION PERCEPTIONS INDEX 2023, 1-26. www.transparency.org/cpi
Indonesia Corruption Watch. (2024). Laporan Hasil Pemantauan Tren Korupsi Tahun 2023 Penulis: Diky Anandya Kurnia Ramdhana.
Fachruroji, A., A. (2020). Pengaruh Audit Internal Terhadap Pencegahan Kecurangan Dalam Laporan Keuangan. Jurnal Akuntansi UMMI, 1(1), 26?36.
Febriantini, A. A., Warongan, J. D. L., & Datu, C. (2024). Analysis of the Role of Government Internal Supervisory Apparatus (APIP) in the Prevention and Detection of BOS Fund Fraud (Case Study of the Regional Inspectorate of North Sulawesi Province). Formosa Journal of Multidisciplinary Research, 3(9), 3467–3490. https://doi.org/10.55927/fjmr.v3i9.11347
Fitri, A., & Suryadi, N. (2024). Pengaruh Pengendalian Internal, Audit Internal, Dan Budaya Organisasi Terhadap Pencegahan Kecurangan (Studi Empiris Pada Inspektorat Kabupaten Kampar). Jurnal Akuntansi Kompetetif, 7(2), 275-281.
Hair, J. F., Tomas, G., Hult, M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). https://www.researchgate.net/publication/354331182
Henseler, J., & Schuberth, F. (2020). Using confirmatory composite analysis to assess emergent variables in business research. Journal of Business Research, 120, 147–156. https://doi.org/10.1016/j.jbusres.2020.07.026
Jerab, D. A., & Mabrouk, T. (2023). The Role of Leadership in Changing Organizational Culture. SSRN Electronic Journal, 1-14. https://doi.org/10.2139/ssrn.4574324
Manopo, S. M. (2021). PENGARUH AUDIT INTERNAL, EFEKTIVITAS PENGENDALIAN INTERN, SKEPTISME DAN INDEPENDENSI TERHADAP PENCEGAHAN (FRAUD). (Studi Empiris pada SKPD Inspektorat Kotamabagu Tahun 2020). Doctoral Dissertation, Universitas Islam Indonesia.
Muwahhidin, & Ansar, M. (2025). The Paradox of Love of Money and Ethical Culture: Seeking New Insights into Fraud Prevention at The Village Level. Economics, Business, Accounting & Society Review, 3(3), 170–181. https://doi.org/10.55980/ebasr.v3i3.158
Paranoan, S., Herawati, T., Yanuarisa, Y., Kantohe, M. S. S., Usman, E., Priliandani, N. M. I., Handayani, M., Yamin, N. Y., Martiningsih, R. S. P., Arif, M., Sugianto, Umar, R., & Bulutoding, L. (2022). Akuntabilitas kinerja sektor publik. Media Sains Indonesia.
Cahyani,R. M., Aristanti, I. A. P. M. P., Susandya, A. A. P. G. B. A. A., Putra, M. D. P., & Bagiana, I K. (2022). The Effect Of Competence, Morality, Integrity, Internal Control, And Organizational Culture On Fraud Prevention With Whistleblowing System As Moderating Variables. Jurnal Mantik, 6(3), 3245–3256.
Nugroho, D. H., & Afifi, Z. (2022). PENGARUH PENGENDALIAN INTERNAL DAN GOOD CORPORATE GOVERNANCE TERHADAP PENCEGAHAN FRAUD. Yudishtira Journal?: Indonesian Journal of Finance and Strategy Inside, 2(3), 301–316. https://doi.org/10.53363/yud.v2i3.42
Peraturan Badan Pemeriksa Keuangan Republik Indonesia Nomor 1 Tahun 2017. Tentang Standar Pemeriksaan Keuangan Negara.
Peraturan Pemerintah Republik Indonesia Nomor 60 Tahun 2008 Tentang Sistem Pengendalian Intern Pemerintah.
Handoyo, B. R. M., & Bayunitri, B., I. (2021). The influence of internal audit and internal control toward fraud prevention. International Journal of Financial, Accounting, and Management, 3(1), 45–64. https://doi.org/10.35912/ijfam.v3i1.181
Redding, Kurt, F, Paul J. Sobel, & Michael J. Head. (2013). Internal auditing: assurance & advisory services. Third Edition. Unites Stated Of America: The Institute of internal auditors research foundation (IIAFR).
Sarstedt, M., Hair, J. F., Pick, M., Liengaard, B. D., Radomir, L., & Ringle, C. M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology and Marketing, 39(5), 1035–1064. https://doi.org/10.1002/mar.21640
Shmueli, G. , R. S. , V. E. J. M. , & C. S. B. (2021). Predicting social media performance metrics and evaluation of the impact on brand building: A data mining approach. Journal of Business Research, 69(9), 4552–4564.
Soehaditama, J. P. (2024). The Influence of Organizational Culture and the Role of Internal Audit on Fraud Prevention. Dinasti International Journal Of Economics, Finance & Accounting (DIJEFA). 4(6), 738?743. https://doi.org/10.38035/dijefa.v4i6
Albretch, W.S., Albretch, C.O., Albretch, C.C., Zimbelman, M.F. (2012). Fraud Examination. (Edisi ke-4). Cengange Learning. E-Book.
Sudharma, F. Z., Haliah, & Nirwana. (2023). The Effect of Organizational Culture, the Role of Internal Auditor and Auditor Integrity on Fraud Prevention. International Journal of Business and Applied Economics, 2(5), 831–850. https://doi.org/10.55927/ijbae.v2i5.6221
ACFE. (2024). Occupational Fraud 2024: A Report to the Nations. Association of Certified Fraud Examiners, 1-106.
Vousinas, G. L. (2019). Advancing theory of fraud: the S.C.O.R.E. model. Journal of Financial Crime, 26(1), 372–381. https://doi.org/10.1108/JFC-12-2017-0128
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Published
2025-08-31
How to Cite
Yulfani, Ansar, M., Yamin, N. Y., Paranoan, S., & Gunarsa, A. (2025). Fraud Prevention: The Contribution of Internal Control, Internal Audit, and Organizational Culture. Quantitative Economics and Management Studies, 6(4), 612–622. https://doi.org/10.35877/454RI.qems4118
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